Notice
April 9, 2008
To: Principal Investigators/Project Directors, and Project Staff
From: Thomas R. Scott, Chief Executive Officer
Subject: Workers' Compensation Rates Reduced Again!
Your safety practices continue to reward us.
SDSU Research Foundation has been able to reduce workers' compensation rates over the last 4 years. Workers' compensation insurance is required by law and covers medical costs, lost earnings, and rehabilitation when a worker is hurt on the job. Each project pays the cost of workers' compensation for their project or department. Rates vary according to the work performed. Each payday, projects are charged a computed rate based on the worker's classification and gross payroll.
The rate was reduced because 1) SDSURF took more of the risk for workers' compensation claims and agreed to pay a much larger portion of each claim and the costs to administer them; 2) employees performed their duties carefully, and with proper regard for safety concerns; 3) claims made were administered quickly and thoroughly, reducing the severity of each claim; and 4) workers' compensation laws in California were tightened, reducing the size of each claim and the costs eligible for payment.
Because we were able to achieve significant savings in workers’ compensation insurance premiums, no charge for workers’ compensation costs was made for some of the 2006 and 2007 quarters (the fringe costs included in payroll did not include a charge for workers' compensation).
SDSURF employees continue to embrace and value safety conscious behavior. Therefore, additional savings are possible and will be passed on again by not charging for workers' compensation insurance coverage for wages earned April – June, 2008.
Workers’ compensation premium rates vary according to the worker’s industrial classification (deep sea diver rates are substantially higher than the rates for accountants). Depending on the worker, the savings to most grants will range from 1.3 % to 2.4 % of salaries for each of the second three months of the year. For example, if a research worker (2.35% rate) is paid $3,000 in a month, the grant will save $70.50 in premiums per month.
Congratulations to you collectively for permitting these savings. If you have any questions about workers' compensation rates, please contact Bob Brown, SDSURF Risk Manager, at rleebrown@foundation.sdsu.edu or 619–594–0858.