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Insurers Look To ‘Clean Up’ Calif. WC Reform Law

The California workers’ compensation reform law is “fundamentally flawed,” according to insurance industry officials, who hope to have input into the “cleanup process.”

AB 749, sponsored by Assembly Insurance Committee Chairman Tom Calderon, D-Montebello, and signed into law by Gov. Gray Davis, includes benefit boosts that the California workers’ comp rating bureau estimates could cost employers as much as $3.5 billion. Rep. Calderon estimated the benefits increases would cost employers one penny per employee per hour.

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