It is useful to understand the dynamics at the WC dept in CA.
When employment goes down, WC claims go up, including spikes in permanent disability.
On a regular (annual) basis, coverage is expanded, rarely decreased.
Thus there is a constantly increasing demand for funds to pay for the various services covered by WC, more so when the economy is doing well.
When the economy tanks, there is a simultaneous increase in demand for funds at the same time as there is a reduction in supply of funds due to decreased employment.
This creates pressure on WC auditors to find more money to refill the coffers.
If you look for patterns and predictability in audits and hefty fines and penalties, you will find the correlation.
Its not the way its supposed to run, but the WC dept is a bureaucracy like all government departments, and subject to budgetary needs.