BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Carole Migden, Chair
Date of Hearing: June 25, 2008 2007-2008 Regular
Session
Consultant: Gideon L. Baum Fiscal:Yes
Urgency: No
Bill No: AB 2181
Author: Ruskin
As Amended: June 16, 2008
SUBJECT
Workers' compensation: Return-to-Work Program: guides.
KEY ISSUE
Should the Legislature require the Division of Workers'
Compensation (DWC) to produce guides for employers and employees
covering the return-to-work process?
PURPOSE
To improve participation in existing return-to-work programs.
ANALYSIS
Existing law establishes a workers' compensation system that
provides benefits to an employee injured at work, irrespective
of fault. This system requires all employers to secure payment
of benefits by either securing the consent of the Department of
Industrial Relations to self insure or by securing insurance
against liability from an insurance company duly authorized by
the state.
Existing law prohibits any discrimination against a worker who
has filed, or has made known his or her intention to file a
workers' compensation claim, and requires that an employer
provides reasonable accommodation for an employee's disability.
Existing law requires the Department of Industrial Relations to
develop educational materials for employers, health care
providers, employees, and labor unions to address, among other
things, early return to work and available resources.
Existing law establishes a Return-to-Work Program for employers
with 50 or fewer full-time employees. The Return-to-Work
Program provides reimbursements of up to $1,250 for a
temporarily disabled employee or up to $2,500 for a permanently
disabled employee, to make physical modifications to the
worksite, equipment, devices, furniture, tools, or other
necessary costs for accommodation of the employee's
restrictions. The program is scheduled to sunset on January 1,
2009.
Existing law requires employers at the last payment of temporary
disability indemnity to provide the employee with a notice that,
among other things, lists the rights and resources available to
an injured worker.
Existing law requires every employer to file a complete report
of every occupational injury or illness which results in lost
time beyond the date of the injury or illness, or which requires
medical treatment beyond first aid, with the Department of
Industrial Relations, through its Division of Labor Statistics
and Research (DLSR), or, if an insured employer, with the
insurer. If the employee subsequently dies as a result of the
occupational injury or illness, an amended report must also be
filed following the same procedure.
This bill requires the administrative director of the Division
of Workers' Compensation (DWC), in consultation with the
Department of Fair Employment and Housing (DFEH) and the
Commission on Health and Safety and Workers' Compensation
(CHSWC), to develop and publish guides for employers and
employees covering the return-to-work process with the primary
purpose of:
Providing practical information for employers on how to
comply with the anti-discriminatory laws governing workers'
compensation and disability after an employee experiences
an industrial illness or injury; and
Hearing Date: June 25, 2008 AB 2181
Consultant: Gideon L. Baum Page 2
Senate Committee on Labor and Industrial Relations
Informing employers regarding their opportunities and
responsibilities in connection with the return-to-work
process after an employee sustains an industrial injury or
illness.
The guides must be available in electronic form on the Internet
website of the Department of Industrial Relations no later than
September 30, 2009.
This bill requires that the official notice given to an injured
worker at the last payment of temporary disability indemnity
must advise the employee of the availability of return-to-work
process information published by the administrative director on
the Internet website for the Department of Industrial Relations.
This bill deletes the requirement of filing an occupational
injury or illness report with the Division of Labor Statistics
and Research, and instead requires that:
a) an insured employer files an occupational injury or
illness report with the insurer, and that form must advise
the employer of the availability of the return-to-work
process information on the Internet website of the
Department of Industrial Relations;
b) a self-insured employer, the state, or the insurer of an
insured employee file an occupational injury or illness
report in an electronic form to the Workers' Compensation
Information System (WCIS), which is administered by the
Division of Workers' Compensation.
If the employee subsequently dies as a result of the
occupational injury or illness, an amended report must also be
filed following the same procedure.
This bill requires that the new occupational injury or illness
reporting requirements shall become effective upon the effective
date of the adoption of the regulations implementing the
reporting requirement changes, provided that the regulations
specify a transition period of no less than 180 days and no more
than 545 days.
Hearing Date: June 25, 2008 AB 2181
Consultant: Gideon L. Baum Page 3
Senate Committee on Labor and Industrial Relations
COMMENTS
1. Need for this bill?
In 2005, through a contract with the California Commission on
Health and Safety and Workers' Compensation (CHSWC), the RAND
Institute for Civil Justice studied several aspects of
California's workers' compensation system, including return to
work rates. In short, they found that, at every level of
injury, employees who return to work experience much lower
long-term earning losses than those who do not. An employee's
ability to return to work also helps employers, as offering an
employee regular, modified, or alternative work can lead to
workers' compensation insurance savings. Earlier RAND studies
have also shown that larger employers have superior return to
work rates than smaller employers.
The author's office notes that, for small businesses, keeping
track of existing law can create significant challenges, as
California law can differ from federal law, and since most
small businesses lack the resources for a Human Resources
department, they may not be aware of all of their legal
obligations. By requiring the Division of Workers
Compensation (DWC) to create guides educating the employer on
his or her requirements under the law, as well as educating an
injured employee of his or her rights under the law, the
Legislature is ensuring that an employer, large or small, is
aware of his or her obligations under the law, as well as the
resources available for assistance, and that the employee is
aware of the employer's responsibilities in connection with
the return-to-work process.
AB 2181 also modernizes and simplifies reporting requirements
by requiring that the occupational injury and illness reports
are sent electronically to the to the Workers' Compensation
Information System (WCIS), which is administered by the
Division of Workers' Compensation, rather than the Division of
Labor Statistics and Research. Currently, the forms sent to
the Division of Labor Statistics and Research are destroyed
without being viewed, and a duplicative report is sent to the
Workers' Compensation Information System (WCIS). The language
in AB 2181, developed by Small Business California with the
Hearing Date: June 25, 2008 AB 2181
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Senate Committee on Labor and Industrial Relations
technical assistance of the Commission on Health and Safety
and Workers' Compensation (CHSWC), is designed to streamline
and reduce the reporting requirements, as well as ensuring
that the information goes directly to where it needs to go.
2. Proponent Arguments :
The sponsor of the bill, Small Business California, believes
that AB 2181 would educate employers and employees on how to
most effectively return an injured worker back to work, as
well as how to comply with existing law. Small Business
California also notes that many businesses may not be aware of
their legal obligations under state and federal laws, exposing
the employers to significant civil liability. Small Business
California argues that AB 2181 places timely information in
front of the employer when they report a worker's occupational
injury or illness, which will notify the employer that the
information is available when they need the information most.
3. Opponent Arguments :
None received to date.
SUPPORT
Small Business California (Sponsor)
American Federation of State, County and Municipal Employees,
AFL-CIO
Berkeley Policy Associates
California Fence Contractors Association
Efficiency Data & Development
Engineering Contractors Association
Flasher/ Barricade Association
Kearney & Associates: The Experts' Alliance
Marin Builders Association
Hearing Date: June 25, 2008 AB 2181
Consultant: Gideon L. Baum Page 5
Senate Committee on Labor and Industrial Relations
OPPOSITION
None received to date.
* * *
Hearing Date: June 25, 2008 AB 2181
Consultant: Gideon L. Baum Page 6
Senate Committee on Labor and Industrial Relations