Flash Report: 2019 OSH Fund Assessment

California employers – insured and self-insured – will pay more on their workers’ comp premium in 2019 to fund the Cal/OSHA program.  An increase in the assessment for the Occupational Safety and Health Fund has been taken by the Department of Industrial Relations.

This year’s assessment for employers who carry workers’ comp insurance is 0.38% of premium, up some 30% – from 0.27% in the 2017-18 fiscal year.

For self-insureds, the rate is going up from 0.11% to 0.12%. In both cases, they are less than pennies on the premium dollar, but the Department of Industrial Relations has several other assessments, many of which are also increasing.

The OSH Fund is the major funding source for the Cal/OSHA program, which also receives grants from Fed-OSHA. The OSH Fund assessment is about $88 million. The fund was hard-wired into law several years ago as a permanent funding source for Cal/OSHA.

The total assessment required for the fund is $122.9 million, but the fund has an existing balance of $39.3 million and there was an “overcollection” – still on the books – of about $4.5 million.