California Workers’ Comp Shake-Up 2024-25: What Will Hit Your Bottom Line

1. Why You Need to Pay Attention Now

Workers’ compensation in California is never static. Sacramento keeps tightening the screws in the name of “worker protection,” and each tweak lands squarely on your balance sheet. Miss one change, and you buy yourself a lawsuit or a penalty notice. Staying ahead is cheaper than scrambling after the fact.

2. What Actually Changed for 2024 and 2025

A. The New “Go Hire a Lawyer” Notice (Effective Jan 1 2024)

You must hand every injured employee a document that spells out, in plain English, “You can hire a lawyer.” The Legislature wants zero confusion about legal representation, which really means more applicant attorneys sniffing around your claims. Ignore the notice and you hand the plaintiff’s lawyer an easy procedural weapon.

B. Full Disclosure on Attorney Fees (Required Jan 1 2025)

Starting next year your notice must also explain that any lawyer fees come out of the worker’s award. On paper that looks transparent. In reality it nudges claimants toward counsel who promise to “maximize” the payout so the fee feels painless. Translation: more aggressive litigation, higher settlement demands.

C. Higher Temporary Total Disability Checks (Begins Jan 1 2025)

The minimum and maximum TTD rates are going up. Good for legitimately injured employees, brutal for your comp premiums. Carriers pass the cost straight back to you, so budget now, not when the renewal invoice hits.

3. Bills on the Horizon

A. SB 230: Airport Firefighters and Presumptions

If SB 230 passes, airport firefighters will get presumptive coverage for PTSD and certain cancers. History says once one high-risk group wins a presumption, others line up. Police, nurses, warehouse workers, who is next? Each new presumption shifts the burden of proof onto you and your insurer.

B. SIBTF: The Quiet Money Pit

Applications to the Subsequent Injuries Benefits Trust Fund have tripled since 2015. The Fund is running on fumes, so assessments on employers keep climbing. Lawmakers are poking at eligibility rules and funding formulas, but do not expect relief soon. Plan for higher post-injury surcharges and more paperwork.

4. California Leads, Other States Copy

New York is shortening appeal timelines, Illinois is beefing up employer reporting, and Washington is slapping bigger penalties on late payments. California’s playbook is spreading. If you operate in multiple states, assume the “California model” is coming for you.

5. Practical Moves for Employers

A. Get the Paperwork Right, Right Now

Update every handbook, poster, onboarding packet, and supervisor script to match the new notice language. Train supervisors to deliver the form the moment an injury is reported. A single missed notice can tank your defenses at the WCAB.

B. Re-Forecast Your Comp Costs

Run fresh numbers with your broker. Higher TTD, more presumptions, and bigger SIBTF hits mean your 2025 comp budget needs padding. Selling upper management on a premium jump is easier today than after an unplanned mid-year assessment.

C. Educate the Rank and File

Confusion breeds litigation. Hold short meetings, send plain-language emails, and explain exactly how claims work, including the lawyer fee deduction. When employees understand the money flow, they are less likely to assume you are hiding the ball.

6. Looking Ahead

Expect Sacramento to keep expanding coverage definitions, especially around mental health and long-tail occupational diseases. Tech upgrades at the WCAB will speed filings, not resolutions, so the war of attrition stays in play. The employer who budgets for delay and documents everything still holds the strongest hand.

7. Bottom Line

Workers’ comp is just another cost of doing business in California, but unmanaged costs become crises. Nail the notices, budget for the increases, and keep your people informed. Handle those three tasks and you slash the odds of finding yourself in a six-figure fight you never saw coming.