California’s Workers’ Comp Rates Poised to Increase Again: What the 10.4% Proposal Means for Landscape Employers

Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) recently released a proposed pure premium rate increase of 10.4% across all class codes. As a reminder, the proposed increase does not mean every class code will see a 10.4% increase on their specific class code, rather that is the blended average increase across all class codes. These proposed rate increases will be reviewed by California’s Insurance Commissioner Ricardo Lara sometime in mid-July for the new rates to go into effect September 1, 2026.

Last year, the WCIRB proposed an 11.2% pure premium increase, but Lara ultimately adopted a lower increase of 8.7% in July. We will learn more about the Commissioner’s decision on this year’s proposal in the coming months.

Looking specifically at the 0042 class code, the proposed pure premium rates are recommended to increase from $5.30 to $5.77, which is a 9% increase. For context, last year, the 0042 class code had an 8% increase on the pure premium rates. If this increase is approved again this year, it will mark the fifth consecutive year that the 0042 class code has seen an increase on the pure premium rates. These trends point toward a continuing hardening workers’ compensation market, which could result in higher annual workers’ compensation premiums for employers.

So, why has the 0042 class code pure premium rates continue to increase? Many factors go into this increase, including surging medical costs, high litigation rates, and a rise in costly cumulative trauma claims to name a few.

To help combat these potential increases, I encourage all landscape companies to really hone in on their current safety program. Invest in technologies, safety certification, trainings, stretch and flex programs, anything that can create a safer environment for your employees and thus lowering the chances of worker’s compensation claims. Additionally, implementing quarterly claim reviews with your broker, claims advocate advisor, and workers’ compensation carrier adjuster is a critical step in managing claim outcomes that helps to control your Experience Modification Rate.

Ultimately, staying proactive through strong safety practices and disciplined claims management will be the most effective way for landscape companies to help mitigate the potential increases to the 0042 pure premium rates.

Reach out to me should you have further questions on the pure premium rate increases and/or an interest in refreshing your approach to safety. I can be reached at ggarcia@ranchomesa.com.