As of January 1, 2018, California’s small employers—those who employ 20 to 49 employees within a 75-mile radius—must provide job-protected unpaid leave for new parents to bond with a newborn child. This law is significant because it increases the number of employers who must provide parental leave. Employees of larger companies are entitled to job-protected leave under federal law.Details
An insurance policy is supposed to provide the insured policyholder with peace of mind: the policyholder and the insurance company have a contract stating that in exchange for premium, the insurance company will pay medical bills and provide other compensation in the event of an injury to the policyholder. Insurance is the only product that a consumer purchases which she hopes she never has to use. Unfortunately, however, when a claim is ultimately made, insurance companies do not always hold up their end of the bargain. When that occurs, a policyholder should consult a lawyer for assistance.Details
The Ninth Circuit Court of Appeals recently held that Allstate Corporation, the nation’s second-largest personal lines insurance company, acted in bad faith under California law by refusing to settle a motorcycle collision case. As a result of engaging in these unlawful tactics, the appellate court upheld an award of $14 million in damages to the plaintiff.
Insurance companies and policyholders agree to a number of terms in an insurance contract. For example, a company might agree to insure a business’s manufacturing plant in the event of a disaster such as a flood, in exchange for the corporation paying monthly premiums to the insurance company.
What’s more, every insurance policy in California is deemed by law to contain an “implied covenant of good faith and fair dealing.” This means the insurance company is supposed to treat policyholders fairly. Unfortunately, this does not always happen.Details
Insurance companies adjust workers’ compensation premiums based on a company’s actual losses compared with the “expected” losses of all other similarly sized companies in the same industry. This adjustment, or experience modification, is expressed as a percentage. A company with an experience modification of more than 100% has had a greater-than-expected number of claims (a worse-than-average experience), while a company with an experience modification of less than 100% percent has had a fewer-than-expected number of claims (a better-than-average experience).Details
Insurance companies typically calculate workers’ compensation premiums based on the size of a company’s payroll and the type of work the company performs. Most companies’ premiums are also adjusted by applying an experience modification, which is expressed as a percentage. This modification adjusts the premium up or down depending on the company’s workers’ compensation claims history and is part of a merit-based system designed to provide employers a financial incentive to reduce work-related accidents.Details
Workers’ compensation insurance is required of all California employers—even those who only employ one person, part-time. The policy serves as a social safety net to provide compensation for employees who become injured on the job and also limits the liability of employers if an employee sues over workplace-related injuries.
Workers’ compensation insurance premiums are collected initially as an estimate. An audit following the end of the policy term corrects any projections that were wrong during the policy term. Premiums are calculated based on employer’s industry “classification code” and the employer’s “payroll”.Details
All businesses in California must carry workers’ compensation insurance in the event anyone who performs work for a company is injured while working. Unlike other types of insurance, workers’ compensation policy premiums are collected as an estimate during the policy term. Once the policy term ends, an auditor checks the premium amounts by conducting an audit. The audit reveals any real-time changes, such as departing workers who would reduce a company’s payroll (and thus affect the premium amounts) during the insurance policy term.Details
Workers’ compensation premiums, or the amount the employer pays to insurance companies to protect the employer as well as the employee in the event of a workplace accident, can be challenging to calculate. A premium is based in part on the dollars in payroll the company pays as well as the employer’s industry. Underreporting of payroll is considered insurance fraud.Details
Workers’ compensation premiums, or the amount an employer pays to an insurance company in exchange for the carrier providing medical treatment and compensation to employees in the event of workplace accidents, are audited at the end of the policy term. Before the policy becomes effective, workers’ comp insurance companies prepare an initial estimate of premiums, based on the amount of payroll and the type of work the employer does, known as the “classification code”. Once the policy term ends, a premium audit is performed to account for any differences from the initial estimates. For example, if several employees left the company during the policy term and were not replaced, payroll would decrease and the amount the employer would pay to the insurance company would need to be adjusted. Also, if the type of work changed during the year, different classification codes may be utilized.Details