June 26, 2018—On May 31, the California Assembly voted 75-0 for a bill allowing insurers to conduct labor rate surveys under new formats.
A Senate Insurance Committee hearing is scheduled for the California labor rate survey bill at 1:30 p.m. PST on Wednesday.
The California Assembly Insurance Committee passed a labor rate survey bill that would require a specific template and cut direct repair program rates.
AB 2276 requirements include surveying a minimum of 30 auto body repair shops or 30 percent of auto body repair shops, whichever is greater. The insurer or auto body repair shop could negotiate a labor rate that is higher or lower than the prevailing auto body repair labor rate.
