RCRC and a coalition of private and public employers have joined together to express our opposition to SB 335, authored by Senator Dave Cortese (D-Santa Clara), which fundamentally alters longstanding rules and timeframes for determining eligibility for workers’ compensation claims and moves California outside of the mainstream when compared to other states.
SB 335 substantially cuts the amount of time available to employers to review whether claimed workplace injuries are, in fact, related to work. For most claims, the investigation period is reduced from 90 to 45 days. For claims covered by legal presumptions, the investigation period is reduced even further to 30 days. This is fundamentally unfair to employers, who deserve a fair opportunity to complete an investigation and make a thoughtful determination about the validity of a claimed injury. There are currently no data or studies showing that the existing rules and timeframes are unfair or have created any systemic problems for injured workers. In contrast, these new deadlines will ultimately lead to additional denials because investigations cannot be completed, and questions as to compensability are likely to remain at the expiration of the statutory timeframe.
In addition, SB 335 increases the amount of mandated employer-funded medical care that must be provided to injured workers – from $10,000 to $17,000 – during the period of time a claim is being investigated, even if the claim is ultimately denied. Further, SB 335 imposes unprecedented and unwarranted penalties on employers that would result in massive and repeated benefit expansions for workers covered by certain legal presumptions.
SB 335 is out of touch with the policies that dictate most workers’ compensation systems in the United States. The changes are even more troubling for public agencies because they exacerbate an already costly and unworkable situation.
The coalition letter may be viewed here. For additional information, contact Sarah Dukett by email or call 916-447-4806.