California Racing

[JustRalph]

Interesting article on insurance rates in California. here is one small paragraph that I found interesting. this is referring to workmans comp rates:

"Unick said AIG's base rate for 2003 is $31.72 per $100 of payroll for employees and $94.24 per jockey ride, well below the State Fund's $54.50 per $100 and $132.08 per ride. Most large stables, with reductions for claim history and other factors, pay in the neighborhood of 20% of payroll cost under AIG, he said.

For many trainers in the state, though, the improved rates are not enough. Several have relocated all or parts of their stable outside of the state, retired, or closed training operations.

Pico Perdomo, a trainer in Southern California for most of three decades, was the latest. He cited insurance costs as a major factor in announcing earlier in February he would shut down his 16-horse operation to become a bloodstock agent. "

This is from the www.bloodhorse.com at this link:
http://news.bloodhorse.com/viewstory.asp?id=14328

I find these rates to be incredibly high. I am wondering if anybody can tell me what kind of rates other states pay. Knowing what they pay in New York would be interesting.

[rrbauer]

JustRalph wrote:
I find these rates to be incredibly high. I am wondering if anybody can tell me what kind of rates other states pay. Knowing what they pay in New York would be interesting.


I can't answer about the other states, but in the case of the jockeys in Calif, they enjoy the best of both worlds. From an employment perspective they are considered "independent contractors", (ie. self-employed) which gives a great deal of latitude with regard to tax treatment of expenses, etc. Yet, from a workmen's comp perspective, they are considered employees and hence the $94 per ride for insurance that the owner pays(plus whatever jock-mount fee and purse split the jocks' get).

I don't know of any other states (there may be some) that will permit treatment as an independent contractor in one instance and as an employee in another. Or, for that matter, in California, other occupations that are classified as "independent contractors" don't even qualify for workmen's comp insurance.