California Gov. Jerry Brown has signed into law bipartisan legislation to reform the states workers compensation system amid rising costs and rampant inefficiency, according to the
San Diego Union-Tribune.
The new law makes significant changes to California’s century-old workers compensation system that had seen costs of the mandatory insurance surge to $19 billion from $14.8 billion only two years ago.
The legislation changes how benefits are calculated for injured workers and seeks to prevent lawsuits by establishing a binding independent arbitration process. It also eliminates coverage for the most common conditions that lead to lawsuits, including insomnia and mental health problems.
The law is expected to save businesses $1 billion in 2013, according to the governor’s office
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