State Compensation Insurance Fund

State Fund was created by the Boynton Act of 1913, and it started operations in 1914.

This was necessary because American employers during the early 20th century often challenged mandatory workers' compensation statutes as an unconstitutional invasion of freedom of contract, an argument which had strong persuasive force during the Lochner era.

[7] In 2010, State Fund implemented a plan to redesign operations and reduce costs for California employers.

In 2013, State Fund announced[8] that it reduced annual fixed expenses by $300 million.

These savings will help State Fund maintain fair pricing and bring greater value to more California employers.