SB 313 — Workers' compensation: penalty assessments.

Summary

Existing law requires every employer, except the state, to secure the payment of workers' compensation. Existing law requires the Director of Industrial Relations to issue and serve on any employer that has failed to secure the payment of workers' compensation a stop order prohibiting the use of employee labor. Under existing law, at the time the stop order is issued and served, the director is required to issue and serve a penalty assessment order requiring the uninsured employer to pay to the director, for deposit into the State Treasury to the credit of the continuously appropriated Uninsured Employers Benefits Trust Fund, the sum of $1,000 per employee employed at the time the order is issued and served. Existing law provides that in lieu of the aforementioned penalty assessment, at any time that the director determines that an employer has been uninsured for a period in excess of one week during the calendar year preceding the director's determination, the director may issue and serve a penalty assessment order that requires the uninsured employer to pay to the director, for deposit into the State Treasury to the credit of the Uninsured Employers Benefits Trust Fund, the greater of (1) twice the amount the employer would have paid in workers' compensation premiums during the period the employer was uninsured or (2) the sum of $1,000 per employee employed during the period the employer was uninsured. This bill would increase the penalty assessment to $1,500 per employee employed during the period the employer was uninsured. Because the money from the increased penalty assessment is deposited into the continuously appropriated Uninsured Employers Fund, this bill would make an appropriation. The bill would also clarify that the director is required to issue and serve either of the above-mentioned penalty assessments. Existing law provides that if the employer is currently insured, or becomes insured during the period during which the above penalty is being determined, the amount an employer would have paid in workers' compensation premiums shall be calculated by prorating the current premium for the number of weeks the employer was uninsured. Existing law provides that if the employer is uninsured at the time the above penalty is being determined, the amount an employer would have paid in workers' compensation premiums shall be calculated by applying the weekly premium per employee on file with the Insurance Commissioner to the number of weeks the employer was uninsured. Existing law provides that each employee of the uninsured employer shall be assumed to be assigned to the governing classification for that employer as determined by the director after consultation with the Insurance Commissioner. Existing law provides that if the employer contends that the assignment of the governing classification is incorrect, or that any employee should be assigned to a different classification, the employer has the burden to prove that the different classification should be utilized. This bill would require that, if the employer is currently insured, or becomes insured during the period during which the above penalty is being determined, the amount an employer would have paid in workers' compensation premiums shall be calculated by prorating the current premium for the number of weeks the employer was uninsured within the 3-year period immediately prior to the date the above penalty assessment is issued. This bill would also provide that if the employer is uninsured at the time the above penalty is being determined, the amount an employer would have paid in workers' compensation premiums shall be the product of the employer's payroll for all periods of time the employer was uninsured within the 3-year period immediately prior to the date the above penalty assessment is issued multiplied by a rate determined in accordance with regulations that may be adopted by the director or, if none have been adopted, the manual rate or rates of the State Compensation Insurance Fund for the employer's governing classification, as determined by the director, pursuant to the standard classification system approved by the Insurance Commissioner. This bill would provide that, unless the amount of the employer's payroll for all periods during which the employer was uninsured within the 3-year period is otherwise proven by a preponderance of evidence, the employer's payroll for each week the employer was uninsured shall be presumed to be the state average weekly wage, as defined, multiplied by the number of persons employed by the employer at the time the penalty assessment is issued.

Bill Text

• Chaptered 11/02/09 - Chaptered Current pdf November 02, 2009
• Enrolled 10/15/09 - Enrolled pdf October 15, 2009
• Amended 09/02/09 - Amended Assembly pdf September 02, 2009
• Amended 08/24/09 - Amended Assembly pdf August 24, 2009
• Amended 06/29/09 - Amended Assembly pdf June 29, 2009
• Amended 04/27/09 - Amended Senate pdf April 27, 2009
• Amended 04/20/09 - Amended Senate pdf April 20, 2009
• Introduced 02/25/09 - Introduced pdf February 25, 2009
• SB313 View text html

Action History

1. November 02, 2009

   Chaptered by Secretary of State. Chapter 640, Statutes of 2009.

2. November 02, 2009

   Approved by Governor.

3. October 20, 2009

   Enrolled. To Governor at 2:15 p.m.

4. October 14, 2009

   Senate concurs in Assembly amendments. (Ayes 35. Noes 0. Page 2524.) To enrollment.

5. September 12, 2009

   (Ayes 39. Noes 0. Page 2455.)

6. September 12, 2009

   Reconsideration granted.

7. September 12, 2009

   Motion to reconsider made by Senator DeSaulnier.

8. September 12, 2009

   Senate refuses to concur in Assembly amendments. (Ayes 25. Noes 0. Page 2454.)

9. September 09, 2009

   In Senate. To unfinished business.

10. September 08, 2009

    Read third time. Passed. (Ayes 78. Noes 1. Page 3061.) To Senate.

11. September 03, 2009

    Assembly Rule 69(d) suspended.

12. September 02, 2009

    Read third time. Amended. (Page 2910.) To third reading.

13. August 24, 2009

    Read second time. Amended. To third reading.

14. August 20, 2009

    (Heard in committee on August 19.)

15. August 20, 2009

    From committee: Do pass as amended. To Consent Calendar. (Ayes 17. Noes 0.)

16. July 08, 2009

    (Heard in committee on July 8.)

17. July 08, 2009

    From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 10. Noes 0.) Re-referred to Com. on APPR.

18. June 29, 2009

    From committee with author's amendments. Read second time. Amended. Re-referred to Com. on INS.

19. June 08, 2009

    To Com. on INS.

20. May 26, 2009

    In Assembly. Read first time. Held at Desk.

21. May 26, 2009

    Read third time. Passed. (Ayes 39. Noes 0. Page 1011.) To Assembly.

22. May 21, 2009

    To Special Consent Calendar.

23. May 20, 2009

    Read second time. To third reading.

24. May 19, 2009

    From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

25. May 08, 2009

    Set for hearing May 18.

26. April 29, 2009

    From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 6. Noes 0. Page 702.) Re-referred to Com. on APPR.

27. April 27, 2009

    From committee with author's amendments. Read second time. Amended. Re-referred to Com. on L. & I.R.

28. April 20, 2009

    From committee with author's amendments. Read second time. Amended. Re-referred to Com. on L. & I.R.

29. April 17, 2009

    Set for hearing April 29.

30. April 16, 2009

    Hearing postponed by committee.

31. March 24, 2009

    Set for hearing April 22.

32. March 09, 2009

    To Com. on L. & I.R.

33. February 26, 2009

    From print. May be acted upon on or after March 28.

34. February 25, 2009

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• DeSaulnier · Primary

Votes

Subjects