The Subsequent Injuries Benefits Trust Fund (SIBTF) now accounts for the largest share of employer assessments in 2025, placing a significant financial burden on California employers. According to the Department of Industrial Relations (DIR), SIBTF assessments surged by 13.3% from the previous year, reflecting the growing cost of claims and administrative expenses.
Growing Share of Employer Costs
In 2025, DIR reported that SIBTF assessments reached $488 million, with $168 million allocated to reserves. This marks a sharp increase compared to prior years, where SIBTF’s share of employer assessments was comparatively lower. As the SIBTF program faces a surge in claims—2,000 to 2,500 annually—employers are bearing the brunt of rising costs. SIBTF Employer Assessments 2025
Why SIBTF Costs Continue to Rise
The growing liability stems from outdated policies, increased claim volumes, and inadequate oversight of the med-legal process under SIBTF. Additionally, unresolved cases and settlements continue to inflate costs. Without significant reforms, these expenses will keep rising, forcing employers to contribute more to sustain the system.
Implications for Employers and Stakeholders
Employers face higher assessments to fund the program while navigating a system that lacks sufficient regulation and oversight. This burden could lead to increased workers’ compensation premiums and tighter financial constraints for California businesses. Unless reforms are implemented, the financial strain on employers will likely worsen.
The Need for Reform and Oversight
Policymakers must address these growing costs by introducing stricter oversight and eligibility reforms within the SIBTF framework. By enhancing administrative controls and preventing excessive med-legal costs, the program can become more sustainable and fair.
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