ADR Requirements

What You Need to Know to Set Up an ADR Program

ADR Program Criteria

The Labor Code sections outline what the employer and union must do to establish an ADR program. Once those qualifications are met, the employer or union can apply for an ADR program or policy from State Fund. Any group or individual employer seeking an ADR program is responsible for complying with the requirements as outlined in Labor Code §3201.5 or §3201.7 and in the Division of Workers' Compensation’s Rules and Regulations.

• Labor Code §3201.5 (effective 7/16/1993): establishes a program in which a union and an employer or group of employers in the construction industry may bargain collectively to create dispute resolution alternatives to the traditional workers' compensation system. The alternative dispute resolution process is negotiated in the Collective Bargaining Agreement (CBA).
• Labor Code §3201.7 (effective 1/1/2004): establishes a program in which unions and an employer or group of employers in any industry, other than construction, may bargain collectively to create dispute resolution alternatives to the traditional workers' compensation system. The alternative dispute resolution process is negotiated in a Labor Management Agreement (LMA) and allows legal counsel at all levels of the process.

Starting Your ADR Program

To initiate an ADR program, please direct initial inquiries to the appropriate group sales manager:

• Northern California inquiries: Bay Area Group Sales Manager
• Southern California inquiries: Southern California Group Sales Manager

Note: State Compensation Insurance Fund is not a branch of the State of California.