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How is the Industry Regulated?

The workers' compensation system contains many components and the system is regulated by a number of government entities.

Department of Industrial Relations (DIR)

Various divisions of the DIR are involved in regulating the workers' compensation industry.

Division of Workers' Compensation (DWC)
Monitors the administration of workers' compensation claims and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers' compensation benefits

Workers' Compensation Appeals Board (WCAB)
The WCAB, a seven-member judicial body appointed by the governor and confirmed by the Senate, reviews petitions for reconsideration of decisions by DWC administrative law judges and regulates the adjudication process by adopting rules of practice and procedure

Division of Labor Standards Enforcement (DLSE)
DLSE adjudicates wage claims, investigates discrimination and public work complaints, and enforces Labor Code statutes and Industrial Welfare Commission orders

California Lawmakers

California lawmakers have the power to make changes to the laws governing the workers' compensation system.

The California Department of Insurance (CDI)
The Insurance Commissioner is an elected position and the Commissioner serves a four year term. The CDI has authority over how the insurance industry conducts business within California including:

  • Enforcement of applicable laws and investigation of criminal conduct
  • Consumer protection
  • Licensing of agents and brokers
  • Issuances of Certificates of Authority for insurance companies
  • Conservation and liquidation of insurers
  • Oversight of the financial condition of the insurance industry

The Insurance Commissioner's workers' compensation regulations that are administered by the WCIRB:

For more information, visit the Department of Insurance website.