March 21, 2025 | SIBTF.org — SIBTF Employer Assessments have reached record levels in 2025, now accounting for the largest share of total employer assessments in California’s workers’ compensation system. This sharp rise is placing a significant financial burden on businesses statewide. According to the Department of Industrial Relations (DIR), the Subsequent Injuries Benefits Trust Fund (SIBTF) assessments surged by 13.3% compared to the previous year, reflecting both the increasing cost of claims and rising administrative expenses. Industry experts note that the growth in SIBTF-related liabilities is driven by more claims qualifying for benefits, higher medical and indemnity payouts, and the long-term nature of many cases.
Growing Share of Employer Costs
In 2025, DIR reported that SIBTF employer assessments 2025 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.
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The growing liability stems from outdated policies, increased claim volumes, and inadequate oversight of the med-legal process under SIBTF.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 SIBTF employer assessments 2025 totals. 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. The rising expenses under the Subsequent Injuries Benefits Trust Fund (SIBTF) highlight the urgent need for systemic improvements, as unchecked cost growth threatens the long-term sustainability of the program.
For employers, the financial impact extends beyond the immediate increase in assessments. Higher contributions to SIBTF can directly influence operational budgets, potentially forcing businesses to reduce workforce investments, delay expansion plans, or reallocate funds away from employee benefits. Stakeholders in California’s workers’ compensation system must also recognize that without targeted reforms, such as stronger oversight of medical-legal evaluations, fraud prevention measures, and more efficient claims processing, cost burdens will continue to escalate. Addressing these issues now is critical to protecting both the financial stability of employers and the integrity of the workers’ compensation framework.
The Need for Reform and Oversight
Policymakers must address these growing costs by introducing stricter oversight and eligibility reforms within the SIBTF claim process. By enhancing administrative controls and preventing excessive med-legal costs, the program can remain sustainable and fair.
Check out California DIR’s detailed breakdown on calculation methods and employer contribution rates in the FY 2024–2025 model: View the Official Assessment Methodology.
Stay informed on rising SIBTF costs, legislative reforms, and compliance tips — subscribe now to SIBTF.org for expert insights and real-time updates.
Read More from SIBTF.org:
- Doctor Pleads Guilty to Writing SIBTF Reports After Suspension
- California Employers Face Mounting SIBTF Liabilities
- Summary and Background of SIBTF
- California’s Subsequent Injuries Benefits Trust Fund
FAQs: SIBTF Employer Assessments: 2025 Cost Increases and Reform Options
Why Did SIBTF Employer Assessments Increase in 2025?
SIBTF employer assessments rose 13.3% in 2025 due to higher claim volumes, outdated policies, and rising med-legal expenses. With 2,000–2,500 annual claims, costs are outpacing reserves. Without reforms, employers may see continued increases.
How Do Rising SIBTF Costs Affect California Employers?
Higher SIBTF assessments can increase workers’ compensation premiums, reduce profit margins, and strain cash flow. Businesses in high-claim industries face the greatest financial pressure, making compliance and proactive cost management essential.
What Reforms Could Reduce SIBTF Employer Costs?
Potential reforms include tighter oversight of med-legal billing, stricter eligibility verification, and more efficient claims processing. These changes could help control costs and ensure fair, sustainable funding for the program.
How Can Employers Prepare for Future SIBTF Employer Assessments?
Employers can prepare for potential increases in SIBTF employer assessments by auditing past claims, improving workplace safety programs, and working with insurance providers to forecast premium adjustments. Staying informed on legislative changes—such as AB 1329—can also help employers adapt strategies in advance and reduce unexpected cost burdens.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund (SIBTF) helps California workers who suffer a new workplace injury and already had a prior disability. It offers supplemental compensation when combined impairments severely limit earning capacity.