Legislation in 2009 created a new fund to be included with the annual assessment. The Labor Enforcement and Compliance Fund (LECF) provides a stable funding source for the Division of Labor Standards Enforcement (DLSE), which enforces minimum labor standards and the statutory requirement to carry workers' compensation insurance.
In addition to fully funding the work of the DWC, and partially funding the work of Cal/OSHA and DLSE, Labor Code section 62.5 requires insurers to collect money from employers to fund antifraud efforts by the California Department of Insurance and local district attorneys, pay benefits to injured workers whose employers were illegally uninsured, and provide compensation to injured workers who already had a disability or impairment at the time of injury. Therefore, the assessment covers the following funds:
Workers' Compensation Administrative Revolving Fund
Uninsured Employers Benefit Trust Fund
Subsequent Injuries Benefit Trust Fund
Workers' Compensation Fraud Account
Occupational Safety and Health Fund
Labor Enforcement and Compliance Fund
Insurers must pay the funding due to the state for policy holders and recover those funds from policy holders through workers' compensation policy surcharges and assessments.