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Workers Compensation And Covid-19; Important Update For Business Owners

Workers Compensation and Covid-19; Important Update for Business Owners

California Gov. Gavin Newsom made a recent declaration that employers need to be aware of.

The declaration by Gov. Newsom will have a direct impact on the potential for Covid-19 workers compensation related claims. The recent executive order (Click HERE for a link to to actual order), was issued on May 4th 2020.

The order eases the path to Covid-19 Workers Compensation claims for employees. In summary, the order states that if an employee contracts Covid-19 (anywhere), the (rebuttable) presumption is that the employee contracted Covid-19 on the job, and can file a workers compensation claim.

Some stipulations of the order, paraphrased, are that:

1. The employee had to be both on the job, and contracted Covid-19, after the stay at home order was issued on March 19th.

2. Covid-19 was confirmed by a positive test within 14 days of performing their job at their place of work.

3. The order is in effect for 60 days following the May 4th 2020 order date.

Important note- this is a summary of the order only, please refer to the actual order in the link above, and monitor for any updates to this order is this situation is fluid and can and likely will change. This is an update only.

Several other states have filed similar declarations easing paths to workers compensation benefits for employees. Business groups have been fighting back against these types of orders, with arguments that they will lead to higher workers compensation insurance rates for businesses. And that this type of order will shift the medical costs of Covid-19 away from health insurers over to workers compensation insurers, who in turn will raise their rates on businesses to pay for Covid-19 claims. This coming at a time when most businesses are already reeling from Covid-19 related closures.

Employers need to be aware of this order, and take this into consideration when re-opening their businesses. Stay tuned to our blog and please subscribe as in future days and weeks we will be posting more helpful information for businesses related to Covid-19.

At Baxter Insurance, we have helped countless businesses with their workers compensation insurance needs over the past 30 years. We have in-depth knowledge of workers compensation insurance and the workers compensation insurance landscape.

If you have any questions relating to your workers compensation policy, please do not hesitate to reach out to us.

The Baxter Insurance Team

Phone 805-963-4048

Email service@baxterinsurance.com

Important Disclaimer:

Our blog is for educational / update purposes only and may not contain up to date information. Please consult with your own counsel for professional guidance (Employment attorney, insurance agent/company/adjuster) attorney, etc)

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