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California Coalition on Workers' Compensation Weekly Update
January 15, 2010
Another Benefit of CCWC Membership |
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New Legislation Expands TD Benefits
The first new workers' compensation bill of 2010 has already been introduced in Sacramento. AB 1603 (Solorio, D-Santa Ana) would require payment of temporary disability benefits to injured workers for up to 60 days after they have been informed that they are permanent and stationary, but only if the employer has not made a decision regarding returning the injured worker to regular, modified, or alternative work. The obvious concern for employers is the expansion of temporary disability benefits to the period of time following maximum medical improvement. Temporary disability, a wage replacement benefit, is not intended to provide injured workers with wage replacement after they have reached permanent and stationary status. AB 1603 would essentially redefine temporary disability in California. Employers have identified a number of other problems with the proposed legislation. The bill calls for benefits to be paid after the employee is informed that they are permanent and stationary. However, an employer is very unlikely to have the information necessary to make a decision about returning to work until well after the employee has been informed of the change in their status. The final report that outlines work restrictions is not likely to be received for several weeks, if not months, after the permanent and stationary date. The result would be an almost automatic payment of temporary disability benefits to injured workers and would lead to increased costs for employers. The intent of the bill is to provide monetary support to injured workers that are no longer eligible for temporary disability under current law, but are also not able to return to work because their work restrictions are unclear to the employer. While this is certainly a laudable goal, AB 1603 does not address the root problem. Most delays in determining availability of regular, modified, or alternative work are due to difficulty obtaining timely and properly written medical reports from physicians. The delay could be resolved by reducing the amount of time it takes to get this critical information. Although no hearing is set at this time, AB 1603 will eventually be heard in the Assembly Insurance Committee. Assemblyman Solorio, the author of AB 1603, is also the chairman of that committee. |
SJDV Bill Revived in Senate
A bill from 2009 which attempts to reform the Supplemental Job Displacement Voucher (SJDV) benefit appears to be on the move in the Senate Appropriations Committee. The bill, SB 3 (Cedillo, D-Los Angeles) was held last year in the Senate Appropriations Committee because of its impact on the state budget. The Senate Appropriations Committee holds legislation in its "Suspense File" when that legislation has a significant cost to the state. All legislation in the Suspense File is then reviewed and a decision is made to either move the legislation to the floor for a vote or hold it in committee to control impact on the state budget. AB 1603 was held in this manner last year. SB 3 modifies the delivery of the SJDV benefit, institutes a single benefit level of $6000 per claim, and alters the approved uses of the benefit. While there are some redeemable qualities to the bill, employers opposed the legislation last year because it does not resolve the core issues relating to the return-to-work process in workers' compensation. The current return-to-work process provides retraining benefits to injured workers late in the process, puts a premium on returning to the at-injury employer as opposed to any suitable employment, opens employers up to litigation related to the Fair Employment and Housing Act, and does not provide a benefit to injured workers with work restrictions but no ratable permanent disability. The employer community largely opposes SB 3 because of its failure to address the full breadth of problems associated with the return-to-work process. CCWC and other employer organizations will continue to press for a resolution to the return-to-work process that addresses the concerns of both the injured worker and employer communities. SB 3 will be heard in the Senate Appropriations Committee on January 20, 2010.
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Hot Topics and Roundtable Forums at the CCWC 8th Annual WC Policy Conference
Plan to join us July 21-23, 2010 at the beautiful Hyatt Regency Newport Beach for the CCWC 8th Annual Workers' Compensation Policy Conference.
The CCWC Conference Committee is in the process of developing a program to include the following "hot" topics: pharmacy, MSA, combating sleep/psychological/arousal disorders, occupational medicine and claims, fraud and workers' compensation, FEHA/leave of absence, and Almaraz/Guzman,as well as provide legislative and political updates. Roundtable forums on various hot topics will provide an opportunity for attendees to discuss presentations, share best practices, and ask questions of our workers' compensation experts.
Please view the conference Web page at www.ccwcworkcomp.org under "Events". You can REGISTER TODAY by downloading and returning the registration form to CCWC. If you register by March 1, 2010, you will be entered in a prize drawing! Please contact Association Services Director Amy Lai at 916.441.4111 or amy@ccwcworkcomp.org if you have questions. |
Thank You for Supporting CCWC's Advocacy Efforts!
The California Coalition on Workers' Compensation recently mailed each of you a 2010 Dues Renewal invoice. We want to thank those of you who have already submitted your payment. If you have not yet returned your dues payment, we urge you to do so immediately and renew your pledge to preserve the 2003 and 2004 reforms. CCWC is an organization dedicated to aggressively defending the workers' compensation reforms that have led to job creation in the private sector and saved tax dollars at the local level. Without the support of our membership, there would be no advocate in Sacramento representing the broad spectrum of California's public and private, small and large employers. Your membership dollars are the only way that CCWC can continue to have a voice inside the Legislature and with regulators across the state to ensure that our state's workers' compensation system does not return to the way it was. If you have questions about your dues invoice or did not receive it, please call us immediately at 916.441.4111. | |
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Jason Schmelzer, Legislative Advocate California Coalition on Workers' Compensation 916-441-4111
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