The workers' comp reforms that were passed in 2004 were, you may recall, a very necessary action. The system had become a runaway pay off for plaintiff trial lawyers who were able to interpret the law so that an employer could never win a case. This had been going on for decades and the results were evident in the rate increases of up to 50 percent. Employers cried out for reform.

The workers' comp crisis had to reach catastrophic proportions because the fight over workers' compensation is one of the oldest in the state Capitol dating back to the 1940s when the workers' comp system was instituted. It was designed as a no-fault system for the situation of an employee being injured on the job. There are four players in the fight over workers' compensation that have weighed in every year for a very long time: employers, trial lawyers, the insurance industry and organized labor. At one time or another, each one of these four have allied with one or the other to either pass eligibility changes or increase benefits. Who wins each year definitely reflects who is in power in the state Legislature and who is governor.

The employer-sponsored reforms passed in 2004 and pushed by former Gov. Arnold Schwarzenegger tightened up eligibility for benefits and imposed stricter medical care guidelines. The results were that premiums started coming down and more insurance carriers entered the California market. Organized labor howled and complained that the changes were too draconian. The trial lawyers complained that many injured workers would not receive benefits.

Fast forward to 2011. The Workers Compensation Insurance Rating Bureau reported that during 2010 premiums paid by employers were $9.7 billion. Slightly higher in fact than 2009 but in general continuing a downward trend. This figure is 41.6 percent of the $23.3 billion that employers paid in 2004. The WCIRB's report also says that during 2010, insurer's operating expenses outstripped premium income by $41.5 billion.

With a new governor and a new insurance commissioner – both Democrats with a democratically controlled Legislature – it is no wonder that a new move is afoot, by those who supported these candidates, to undo the workers' comp reforms.

I think it is important to remember and to remind our elected officials that although employer premiums have gone down, California still has among the highest workers' comp costs in the nation. Critical also, is the impact that increasing employer workers' comp costs will have on job growth and job creation. Politicians forget this fact ... or conveniently choose to ignore it much of the time. Our job is to not let them forget!

 

 

 

SUGGESTED SPEAKERS FOR DISTRICT MEETINGS

As all of the districts change over to new officers in the summer I always get requests for speakers. I will provide a short list that can be used.

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BUILD AWARENESS FOR YOUR BUSINESS IN YOUR COMMUNITY

As a small business owner, you have something going for you the larger businesses don't. You already know who your main audience is. You know because if you're running a business, your main audience is very often the folks located 10, 20 or 30 miles from your place of business. Your challenge is to make sure you get on their radar. It's nice that you know who they are. But you need to make sure that they know who you are.

Here are some great ways to give back to your local community.

Join the Chamber of Commerce. Every town has one and every Chamber of Commerce needs more volunteers to help out and sponsor local events, workshops, and to serve on different committees. Contact yours and ask how you can join and get involved. Associate your brand with the community you live in. It's a great way to support your community, while also building name recognition and possibly getting you a link from their website. Or, if you don't have the time to serve on a committee, volunteer your office space for their next meeting or mixer, and supply food and drink. It's the little gestures that people remember and that earn you great karma points.

Sponsor a local team: There's no better way to spread awareness and goodwill for your company than to sponsor a local sports team or club. Every child has a parent, and every parent appreciates companies that help children. Look for opportunities to sponsor Little League teams, soccer teams, pee-wee football, Girl Scouts, Boy Scouts, etc. It's a great branding opportunity for you, even more that that, you get to help kids and youth living in your community. And don't just slap your logo on some jerseys and think you're done. Actually show up and participate.

Use Internet social media sites to organize a meeting so that you can get together with the folks in your community. It can be industry-based, a group for local entrepreneurs, for parents, etc. You don't have to stay within your little box; just form relationships with other people in your community. And when you're there and talking to people, don't worry about promoting your company. Just be a real person. What you do for a living will naturally come up in conversation and the next time anyone in that group needs what you do, they'll remember that they already know someone who does that. They have a friend they met at the last meeting.

Speak at local events. If there's a local seminar going on in your area about your industry, or about something you have some knowledge in, offer to speak. Or, if there isn't one happening, offer to help put one together and host it. Doing so establishes yourself as an expert and makes you the go-to person in your area for that subject. There may also be some great branding opportunities as well in the event.

Use local venders. As a local business, you should be supporting all the other local businesses in your town and using them whenever you can. You want to create synergistic relationships that will let you cross promote. Helping each other out means you create opportunities for cross promotion and makes sure certain jobs aren't outsourced to companies not within your community.

Join a local service club. Think about joining the local Kiwanis, Lions Club, Rotary Club, etc. There are lots of opportunities for networking in a local service club and provides you an opportunity to promote yourself within your community.

Growing your small business often means simply making the community know that you exist in the first place. Getting exposure doesn't have to be burdensome. In fact, it's often a lot of fun and a great reason to do some good in your community.

 

IN MEMORIAM

Dennis Merrill, owner and president of Killroy Pest Control in Campbell, passed away July 18, 2011.  In lieu of flowers, please consider making a donation in Dennis' honor to the PCOC Scholarship Foundation.

 

 

Workers' compensation costs the average employer $1.33 per $100 of payroll. That might not sound like much, but one or two injuries can send your costs skyrocketing. Here are some pointers to keep those costs under control.

1. Check occupational class codes on your policy for accuracy. Workers' compensation insurers base premiums on occupational class code, which reflects the relative hazards of occupations in your main industry. If your code is incorrect, you could be paying too much.

2. Check your experience modification for accuracy. If you have more than a "minimum premium" policy (more than $2,500 or $5,000 in annual premium, depending on the state), the insurer will experience-rate your coverage. This means it will adjust your premiums based on your organization's past claims experience— the more claims, the higher your premiums. A factor of one indicates your experience is average; your premiums won't change. A factor higher than one indicates worse than average experience; you will pay more for coverage than the average employer in your occupational classification. A factor lower than one indicates better than average experience; your premiums should drop.

3. Review your workers' compensation loss history at least once a quarter. This can help you spot recurring safety and health problems and correct them. You can also correct any discrepancies before they become part of your experience modification and affect your rates.

4. Have your claims administrator review your claim reserves at least once a quarter. Do they seem reasonable for the type and severity of the injury? If not, discuss it with your insurer. Make sure your experience modification is recalculated whenever reserves drop.

5. Prevent injuries by pre-screening applicants for jobs that require physical exertion, such as lifting, or certain physical characteristics, such as sharp vision or hearing. Test their abilities by creating situations similar to what they will encounter on the job. (To avoid charges of discrimination on the basis of disability, you should make a conditional offer of employment before testing!) For jobs requiring strenuous physical activity, you might also want to require a physical exam.

6. Check with trade associations and other business groups. Are you a member of an industry association or other business group, such as a Chamber of Commerce? Many groups arrange for discounted coverage; your membership might make you eligible.

7. Prepay premiums. Many insurers will give discounts for prepayment.

8. Give managers incentive to focus on safety. Track claims activity and safety violations by department and link managers' compensation to the achievement of safety goals within their department.

9. Give employees incentives for safety, too. Award bonuses for achieving a certain number of accident-free days, or to employees who suggest ways to improve safety.

10. Provide modified-duty jobs to partially disabled jobs to get them back to work quickly after an injury.

For more suggestions on improving safety and controlling costs, please contact the PCOC Insurance Program department at Jenkins Insurance Services at (877) 860-7378.

 

SAN GABRIEL VALLEY DISTRICT PRESENTS

FLYER   SPONSOR

 

NAME COMPANY DISTRICT	MEMBER TYPE	REFERRED BY
Mr. Chuck Brasiel	R
Termite Services
BIGVALLEY

 

TEMPORARY NPMA LOGIN FOR JOINT MEMBERSHIP

LOGIN: 313501

PASSWORD: PCOC

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PCOC website password for 2011-2012 effective July 1, 2011: "npma"

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Department of Fish & Game
www.dfg.ca.gov

Department of Food & Agriculture
www.cdfa.ca.gov

Department of Pesticide Regulation
www.cdpr.ca.gov

Find Your Legislator
www.leginfo.ca.gov/yourleg.html

Healthy Schools Act
www.schoolipm.info

Structural Pest Control Board
www.pestboard.ca.gov

 

For an additional charge, you may access a 24-hour hotline providing consultation by qualified medical doctors on pesticide-related medical emergencies. This service is provided free of charge to Peacock Group insureds.

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