Good news for California businesses. The largest provider of workers' compensation in California, the State Compensation Insurance Fund, plans to cut its rates by 16% in January. This would make a drop in rates of 38% since the overhaul of the system was announced two years ago. Government officials point out that the rate decreases cut the cost of employment in the State making it more job growth friendly.

State Insurance Commissioner John Garamendi noted that the cuts are good, but more could be done. Last year the insurers earned record profits, paying out 39 cents in claims for every $1 in premiums paid by employers. If all of Commissioner Garamendi's suggested cuts had been made the cumulative two-year drop would have been 46.2% versus the 38%.

Gillian Parrillo
The Sacramento Executive