Workers' Compensation: California's WVPP Legislation: A Potential Benefit for Workers and Industry?

Tuesday, April 2, 2024

California's WVPP Legislation: A Potential Benefit for Workers and Industry?

California's Senate Bill 553 (SB 553), which mandates a Workplace Violence Prevention Plan (WVPP) for most employers by July 1, 2024, has a primary focus on employee safety. However, it might also have a secondary benefit – reduced workers' compensation insurance costs.
The Link Between WVPPs and Lower Costs

The logic behind this potential benefit is twofold:

Prevention:

By identifying and mitigating workplace violence hazards, employers can reduce the number of violent incidents and the associated claims. This translates to fewer payouts for workers' compensation insurance providers.

Safer Work Environment:
A well-implemented WVPP can foster a culture of safety and awareness. This can lead to fewer injuries overall, not just from violence, further reducing insurance costs

The Need for Data

While the potential for cost reduction exists, it's important to acknowledge the lack of conclusive data on the direct impact of WVPP legislation on workers' compensation costs. More time and data collection are needed to establish a clear cause-and-effect relationship.

Beyond California: A Growing Trend?

California might be a trailblazer, but it likely won't be alone for long. Workplace violence is a national concern, and other states are starting to consider similar legislation. Increased awareness of the issue and its costs could lead to a domino effect, with more states adopting mandatory WVPP requirements.

Looking Ahead

California's legislation is a positive step towards safer workplaces. While the cost reduction aspect needs further study, the potential benefits for employers and employees are significant. As more states consider similar plans, data collection and analysis will be crucial to assess the true financial impact on workers' compensation insurance.

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Recommended Citation: Gelman, Jon L., California's WVPP Legislation: A Potential to Workers and Industry?, www.gelmans.com (04/02/2024)

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*Jon L. Gelman of Wayne, NJ, is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise Modern Workers’ Compensation Law (West-Thomson-Reuters). For over five decades, the Law Offices of Jon Gelman 1.973.696.7900
jon@gelmans.com has represented injured workers and their families who have suffered occupational illnesses and diseases.