Changes in Workers’ Compensation for 2025
As we step into 2025, small business owners in California need to stay informed about significant changes in Workers’ Compensation laws. These updates include expanded coverage, new protections for independent contractors, mandatory insurance requirements, shorter reporting periods, and increased benefit rates. Navigating these changes can be challenging, but partnering with a Professional Employer Organization (PEO) can provide valuable support. PEOs offer cost savings, administrative assistance, compliance management, and workplace safety services, helping businesses manage these changes effectively and focus on their core operations.
- Coverage Expansion: New laws now encompass a broader range of work-related conditions, including mental health issues.
- Independent Contractor Rules: Improved protections for gig workers and independent contractors, ensuring more of them are covered.
- Mandatory Insurance for Contractors: Expanded requirements mean even solo contractors in certain professions need workers’ compensation insurance by 2026.
- Shorter Reporting Period: The reporting period for workplace injuries has been reduced, encouraging prompt reporting and documentation.
- Increased Benefit Rates: Temporary Total Disability (TTD) and Permanent Total Disability (PTD) rates are set to increase, providing better financial support for injured workers.
How a PEO Can Help
- Cost Savings: PEOs can negotiate better rates for workers’ compensation insurance, leveraging economies of scale to obtain group discounts.
- Administrative Support: PEOs handle the administrative tasks related to workers’ compensation, including compliance paperwork and claims management.
- Compliance: PEOs ensure that businesses stay compliant with the latest regulations, reducing the risk of penalties and operational disruptions.
- Workplace Safety: PEOs often provide workplace safety audits and risk management services to help prevent injuries and improve overall safety.
By partnering with a PEO, small businesses can navigate the complexities of workers’ compensation changes in 2025 more effectively and focus on their core operations.
Sources:
1 visionarylawgroup.com
2 www.pacificworkers.com
3 blog.easeworks.com
4 www.netpeo.com
5 vestedhr.com