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AUTHORIZE A RESOLUTION TO COVER VOLUNTEERS UNDER THE CITY’S SELF-INSURED WORKERS COMPENSATION PROGRAM
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RECOMMENDATION
It is recommended that the City Council adopt and authorize a resolution to cover City volunteers under the City’s self-insured workers’ compensation program in accordance with California Labor Code section 3363.5.
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Summary
The City of Stockton utilizes volunteers in various departments to assist the City in various projects. The City recognizes its responsibility to provide a safe work place but understands that injuries may occur. The City would like to formally elect to cover individuals who perform voluntary services without pay, under our workers’ compensation program, per Labor Code section 3363.5.
Background
The City of Stockton has been self-insured for workers’ compensation since January 1, 1979. Our workers’ compensation claims are administered by a third-party claims administrator. Our self-insured retention is $500,000 per claim. To date, no injury claim submitted by a volunteer has exceeded our self-insured retention.
In 2022, the City recorded 708 volunteers primarily in Police, Recreation and Library. The City has reported 12 volunteer claims over a 5-year period with an average incurred cost of $10,812 per claim. The City elected to cover these injuries under our self-insured workers’ compensation program as a cost-effective option rather than allowing the volunteer to pursue a liability claim for damages.
Present Situation
California Labor Code section 3363.5 allows public agencies to extend workers’ compensation coverage to persons who perform voluntary service without pay while those volunteers are performing such service. In order to reduce exposure, the City has provided workers’ compensation benefits to volunteers when injured. Staff recommends a formal resolution be adopted by Council to continue implementing these practices.
Findings
Based on loss history, covering volunteers under our workers’ compensation program is the most cost-effective approach to provide benefits to volunteers who are injured in the course of their voluntary service.
FINANCIAL SUMMARY
We do not anticipate an increase in premium based on the loss ratio and incurred claims.