Work Furlough Violates the Rights of Everyone

Saturday, May 30, 2009 | 0

By David J. DePaolo

The State of California's budget crisis is of epic proportions, with cuts slated for nearly every state program and agency. Nothing is sacred in the Governor's proposals as the state's fiscal inadequacies entangle all manner of health, safety and education in the state, including the Constitutional rights of injured workers and the state's businesses.

Governor Schwarzenegger in January, 2009, mandated that all state workers, regardless of funding source, be furloughed two days a month (Governor's Executive Order S-16-08).

Thus even state programs that do not rely upon the General Fund are under the Governor's Order.

The Division of Workers' Compensation (DWC) is one such agency. The DWC became 100% "user funded" in 2004, meaning that employers are assessed a fee as a part of their workers' compensation insurance policy to pay for DWC operations. Previously 80% of the Division's budget came from the General Fund.

Government figured this was easy to get away with because most employer's don't really pay attention to their workers' compensation premium notice, because they don't understand it. Government knew that employers wouldn't notice the fee assessments on their workers' compensation bills, since employers primarily focus on "rates", and Government was right. The fees are tacked on (along with several other fees - oh hell, let's stop this "fee" talk ... they're TAXES) to the employer's premium.

In 2008 the "user funding" mechanism was increased a whopping 22%. This was justified by the DWC as necessary in order to build a new computer system for the Workers' Compensation Appeals Board, and to lend money to the Division of Occupational Safety and Health's Targeted Inspection and Consultation Fund.

Still, there was no outcry from the employer community. After all the "user funding" tax is only 1.3583% of an employer's premium (along with an additional .08209% in additional taxes on premium). Who is going to care about 1.3583%? Heck, in state government speak, that is only $195 million - a reasonable burden for employers to pay for a fair, efficient, effective and constitutional system of administrative justice free from the burdens and unpredictability of a state General Fund.

And frankly I wouldn't have a problem paying a 1.3583% tax to keep an essential service operating. But now the State of California not only is taking our money - money that is specifically slated for the operations of a specific agency - but is telling us we don't get full service for our money.

If you're not outraged by this (as either an employer OR injured worker) then let me make things a little more clear.

All employers and employees of the State of California have a Constitutional right to "an administrative body with all the requisite governmental functions to determine any dispute or matter arising under such legislation, to the end that the administration of such legislation shall accomplish substantial justice in all cases expeditiously, inexpensively, and without encumbrance of any character" (California Constitution, Article 14, Section 4).

So, not only is the government taxing you (employees, wake up - a tax on business means less money and jobs for you!) but is not providing the service that you have a Constitutional right to!

Doesn't it make you mad when you pay $195 million for something and you don't get what you paid for? I do.

Don't you get upset when your rights, as either employer or employee, are raped, pillaged, and burned by a government that has less conscience than most thieves? I do.

Don't you feel abused when you pay full fare for half service? I do.

We had employer revolts when business thought that workers' compensation rates were too high. Where's the revolt when business can not get their claims adjudicated in a timely manner because the system that they are paying 100% for isn't open for business 100% of time?

Wake up California Business! Don't you realize that the longer your litigated claims stay open the higher your workers' compensation premium will be down the road? This is not just an issue of a 1.3583% tax, this is an issue of state government screwing you blind while distracting you with BS arguments against raising permanent disability indemnity rates. The permanent disability indemnity increase that was killed by the Senate Appropriations Committee May 28 is pennies compared to the premium increases the employer community will face due to delays in the adjudication of claims because of DWC work furloughs.

Don't buy the malarkey being fed by your leaders. Lobbyists purporting to represent the interests of California business are wrongly focused and misguided. I say these lobbyists need to work on releasing the DWC from the Governor's work furlough order, instead of trying to cheat injured workers out of badly needed and deserved increases in permanent disability indemnity.

Employees of California should likewise be rioting in the streets. Instead we have one of the most apathetic electorate in the nation. Where are the people of California when their constitutional rights are being usurped by a state government run amok with special interest pork barrel lobbying? Why is there not outrage at such blatant thievery? Why does no one care that their rights are being ignored?

Call your legislator. Write your legislator. Tell them you are upset that they are stealing your money. Tell them you will vote them out of office the first chance you get because you can not stand by and let state government rob you blind. Tell your leaders to wake up and deal with real Constitutional issues instead of smoke and mirrors.

If there is any time ripe for demonstration, it's now.

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David J. DePaolo is the president and CEO of WorkCompCentral.
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