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New California Rule on Restricted Stock Units Could Increase Your Workers’ Comp Premiums

Budgeting for workers' compensation premium can be challenging for fast-growing employers. If payroll increases significantly over the course of the particular policy term, the annual payroll and premium audit conducted post-expiration could result in a large additional premium bill. Grants of stock shares (otherwise known as Restricted Stock Units or RSUs) can contribute to unplanned increases in the payroll totals, which can create a significant additional cost in the final workers' compensation premium calculation.