Winter 2004

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Guest Commentary

Allan Zaremberg is president of the California Chamber of Commerce.

Ask anyone with a payroll what he or she would change first in California, and workers' compensation is likely to top the list. Whether an employer is self-insured, insured by a private company or through the State Compensation Insurance Fund, costs continue to climb with no end in sight.

Only seven states have workers' compensation costs that average more than 3 percent of payroll; California's average is more than 6 percent.

In his State of the State address, Governor Arnold Schwarzenegger stated emphatically that "jobs, jobs and jobs" are his priority, and the biggest obstacle to attracting and creating jobs in California is its bloated, dysfunctional workers' compensation system.

That’s why the California Chamber of Commerce, the California Taxpayers’ Association, other employer groups and private companies are reactivating the Workers' Compensation Action Network (WCAN) to support the governor's workers' compensation reform agenda.

One way employers and employees can support the governor's fight for the workers' compensation relief they so desperately need is to let legislators and the public know that out-of-control workers' compensation costs are hurting everyone. WCAN is designed to help employers channel their frustration to get their message across, loud and clear.

Write Your Legislator TODAY

Governor Schwarzenegger has asked the Chamber and other employer groups to engage in a letter writing campaign to highlight the desperate need for immediate action to overhaul California’s workers’ comp system. Working with the Chamber, WCAN is urging employers and employees to write their legislators today to ask them to pass the governor's workers' compensation legislation, SBX4 3 (Poochigian; R-Fresno) and ABX4 1 (Maldonado; R-Santa Maria). Contact information for legislators can be found at http://www.fixworkerscompnow.org. This site also contains sample letters and other useful information regarding workers’ compensation.

Those affected by California’s broken system must let legislators know how out-of-control workers' compensation costs are hurting their constituents and what employers have had to do to cut costs so they can pay their workers' compensation bills. The Chamber is also asking for copies of these letters to be faxed to the Chamber at (916) 325-1273 and Governor Schwarzenegger at (916) 445-4633.

Workers' Comp High Concern

Government plays such a huge role in the functioning of the workers' compensation system that the Legislature must enact comprehensive reforms in order to provide true cost relief to employers. Without reform, the only way for employers to reduce their workers' compensation costs is to cut jobs or benefits for workers. The workers' compensation system is hurting California's economic recovery.

Join Action Network

In addition to writing your legislator, please join WCAN today by logging onto the Web site and filling out the membership form. If you indicate that you are interested in meeting with legislators, a WCAN representative will contact you about joining a District Action Team.

The Action Teams in key districts will meet with lawmakers and explain how excessive workers' compensation costs affect their constituents – businesses, local governments, schools and non-profit organizations, and the people they employ. Action Team members will also be asked to explain the need for action to the public through the news media.

At no time in recent memory has there been more hope that California will finally clean up the workers' compensation mess. The Chamber urges employers and employees to help make reform happen by writing your legislators today to share your story. Then join WCAN to add your name to the growing list of those who support workers' comp reform.

Without meaningful workers’ compensation reform, California’s employers will continue to look to neighboring states to locate or expand their business.  Further, as the national economy begins to rebound, our skyrocketing workers’ compensation costs will continue to provide a severe disincentive for businesses to locate new jobs or ventures in our state. The status quo is unacceptable. To reinvigorate California’s jobs climate, we must fix our workers’ compensation system now.