Issue 128 – October 2022
LEGISLATIVE UPDATE
The Impacts of Senate Bill 1127 on Workers’ Compensation Claims
By Workers’ Compensation Program Manager, Jeff RushGovernor Newsom recently signed Senate Bill 1127 (SB 1127) into law, despite the opposition of the California JPIA and employers throughout the state. The bill has several components that dramatically change how presumptive workers’ compensation claims are handled. These components are detailed below.
Temporary disability-cancer claims
THEN: Employees with a presumptive cancer claim were limited to 104 weeks of temporary disability benefits (which is consistent with most injuries).
NOW: Employees with a presumptive cancer claim are now entitled to up to 240 weeks of temporary disability if their injury has not reached maximum medical improvement before that time.
Discovery for presumption claims
THEN: Employers were afforded 90 days to investigate most workers’ compensation claims.
NOW: Employers will be allowed 75 days to investigate a claim. These claims often involve significant discovery, such as a deposition, retrieval of prior medical records, and a comprehensive med-legal evaluation, so it will often be impossible to complete discovery in this shortened timeframe.
Increased penalties
The potentially most concerning aspect of SB 1127 is establishing a new penalty for claims that are “unreasonably rejected.” These penalties would be set at “Five times the amount of the benefits unreasonably delayed” with a limit of $50,000 per claim. This bill provision will likely increase litigation as injured employees and their attorneys pursue these potential penalties.
The California JPIA will be hosting a webinar on Thursday, November 10, from 10:00–10:45 a.m. to address the anticipated impact of SB 1127. Workers’ Compensation Program Manager Jeff Rush will host the webinar and will feature the following panelists:
- Demetra Geges Johal, Managing Partner, Laughlin, Falbo, Levy & Moresi
- Steve Siegel, Partner, Siegel, Moreno & Stettler
- Adam Dombchik, Managing Partner, Gordon, Edelstein, Krepack, Grant, Felton & Goldstein
There is no cost to attend this webinar. However, member agency staff interested in attending must complete a registration request on the event website.
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