RPNA is at the forefront of protecting employers from all aspects concerning the workers compensation program. However, when Governor Gavin Newsom proposed an $18 billion budget, a little noticed provision also included millions of dollars more for the Department of Industrial Relations (“DIR”).
It is obvious that California employers can expect more investigations of worker misclassification allegations and possibly an increase in workers comp claims, as a result of AB 5. Indeed, a proposed budget shows that the DIR is adding, or wants to add over one hundred positions, just to address the AB 5 implementation.
With an additional increase of workers compensation claims estimated by as much as ten percent, the impact at the WCAB, in terms of potential backlog and hearings, will likely be felt. And, along with this, will be a domino effect requiring more qualified medical evaluators and independent medical evaluators as well.
In order for employers to brace themselves in the wake of AB 5, all California Employers should set up consultations with their brokers, or attorneys, who specialize in these areas.
To discuss how your business can best prepare, please feel free to contact me, Nicholas P. Roxborough, at (818) 992-9999.
