San Francisco Sues Hospitality Company Over Worker Misclassification

San Francisco City Attorney David Chiu is suing Qwick Inc. for allegedly misclassifying restaurant and hospitality workers as independent contractors and denying them minimum wage, overtime pay, paid leave, and workers’ comp coverage. The city also has an ongoing misclassification lawsuit against Uber and Lyft for classifying its drivers as independent contractors instead of employees. … Read More »

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Covid-19 Claims To Count Against X-Mods

The Workers’ Compensation Insurance Rating Bureau’s Classification and Rating Committee voted to recommend updating the experience rating system to put Covid-19 claims into employers’ X-Mods. The experience from Covid-19 claims has never been included in the rating calculation, but that could change as of September 1, 2024. The Bureau is a private organization with quasi-governmental … Read More »

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Classification Changes In Store For Food Manufacturing and Processing

The Workers’ Compensation Insurance Rating Bureau is conducting a top-to-bottom review of the workers’ comp classifications covering food manufacturing and processing in California. The idea is to consolidate some similar classes and break apart others that have become unwieldy. Currently, there are 22 classifications under review, and Bureau staff have identified several for a deeper … Read More »

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Uninsured Inspections Are Down

for violating Labor Code section 3722 last year. The state’s Uninsured Employer Enforcement Program completed 41 inspections last year and had another 51 open at year-end. The program levied nearly $1.8 million in penalties against the employers found operating without valid workers’ comp coverage but collected only $243,310 of the total – a collection rate … Read More »

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DoorDash Classification Dispute

The question at hand is whether DoorDash’s operations fall under the web-based development classification 8859 or the more general clerical and telecommuter classes 8810 and 8871. But there is too a third possible classification if  the contractors who actually deliver the food become reclassified as employees under AB5. DoorDash and the Workers’ Compensation Insurance Rating … Read More »

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Prior Classification Error Doesn’t Prevent Correction, Audit Premium

A property management company owes nearly $40,000 more in workers’ comp premium after managers were improperly assigned to the wrong classification for several years. The carrier discovered the error and endorsed the correct classification when the policy was renewed. Then, when the renewed policy was audited, it reclassified the managers’ payroll and sought additional premium. … Read More »

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Workers’ Comp Regulatory Filing Approved

The California Department of Insurance fully adopted the Workers’ Compensation Insurance Rating Bureau’s September 1, 2023, regulatory filing. A separate decision on the advisory pure premium rates is still pending. … Read More »

Workers’ Comp Results – Profitability Continues

Workers’ compensation remains the most profitable part of the national property and casualty industry. For the sixth straight year, its combined ratio was under 90. And carriers overall are holding on to reserve redundancies. The news came from National Council on Compensation Insurance’s chief actuary Donna Glenn, and it was part of the rating association’s … Read More »

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