California Workers' Compensation Reform Passes with Strong Bi-Partisan Support

Sacramento, CA (WorkersCompensation.com) - With only moments to spare in the current legislative session, California lawmakers passed SB 863 Friday night, a bill bringing fairly dramatic reforms to the workers' compensation system there.

The bill, which had already been endorsed by Gov. Jerry Brown, passed with very strong support. Only four legislators in each house voted against it. The votes in the Assembly were 66-4, and in the Senate, 34-4.

Governor Brown is widely expected to sign the bill into law, having issued the following statement regarding its passage: “I commend the Legislature for an extraordinary workers' compensation reform bill that helps injured workers and averts an imminent crisis of skyrocketing rates, Again, Republicans have joined Democrats to work together – perhaps, a portent of good things to come.”

SB 863 is projected to save hundreds of millions of dollars in costs for the workers' compensation system and employers in the state. It contains efforts to reduce fraud and to streamline processes. It also increases benefits for permanently disabled workers by $740 million. It also creates a $120 million fund for workers who are unable to return to a position at their previous wage level as a result of their injury.

The stated goal of SB 863' author and supporters was to allow for increased benefits by creating offset savings in process areas within the workers' compensation system, which would be likely to reduce the number disputes and of lawsuits filed over worker injuries. It was strongly opposed by some groups, including chiropractors and medical providers, as well as lawyers representing injured workers.

You may read the entire bill here.

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