State of California

M E M O R A N D U M

                                                   Date:  06/20/94
To:       PERSONNEL MANAGEMENT LIAISONS  Reference Code:  94-37
                                                        
          THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:

                DEPARTMENT PERSONNEL OFFICERS
                HEALTH & SAFETY OFFICERS
                RETURN TO WORK COORDINATORS

From:     Department of Personnel Administration

Subject:  Workers' Compensation Cost Data, Fiscal Year 1992-93
  
  Enclosed is the workers' compensation cost data (Exhibit A) for all of State Government for
  the period of July 1, 1992 to July 1, 1993.  The most significant data, as compared to fiscal
  year, are:
  
  o  The State's workers compensation costs total $287,888,145.  This represents 3.54%
       of payroll and a 14% increase over Fiscal Year 1992/93. 
  
  o  Wage continuation program payments show a positive downward trend.  Industrial
       Disability Leave (IDL) costs have decreased from $36,586,171 in Fiscal Year 1991/92
       to $34,856,950.  This represents a 4.7% decrease.  Labor Code Section 4800
       payments were reduced even more, with a 7% decrease from $11,096,000 to
       $10,755,025.
  
  While costs for workers compensation have increased in total, there are some very
  encouraging trends that started in Fiscal Year 1992/93 and appear to be continuing based on
  preliminary data received in Fiscal Year 1993/94.  Increases in medical costs have slowed
  down and the amount of lost time costs are down as reflected in the reduction in IDL and
  4800 Time.  Some of the reasons for the improving situation are:
  
  o                                                                      Increasd safety awareness and injury prevention programs throughout state service
       including some specialized awareness activities related to back care, ergonomic
       redesign, stress management and general workplace wellness.
  
  o                                                                      Greater emphasis on returning injured and disabled workers to the job as quickly as
       medically feasible through modified duty assignments and reasonable accommodation
       efforts.
  
  o                                                                      Enhanced management emphasis on cost containment activities related to workers'
       compensation, including medical cost containment strategies.
  
  If the positive trends continue, it is possible the State, as an employer, could   experience a
  reduction in workers' compensation costs during Fiscal Year 1993/94.
  
  
  
  
  Patricia Pavone, Chief
  Benefits and Training Division