Calif. Reforms Workers Comp Program

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.