BILL NUMBER: SB 936 ENROLLED BILL TEXT PASSED THE SENATE JUNE 4, 2007 PASSED THE ASSEMBLY SEPTEMBER 10, 2007 AMENDED IN SENATE APRIL 25, 2007 INTRODUCED BY Senator Perata FEBRUARY 23, 2007 An act to amend Section 4658 of the Labor Code, relating to workers' compensation. LEGISLATIVE COUNSEL'S DIGEST SB 936, Perata. Workers' compensation: permanent disability schedule. Existing law establishes a workers' compensation system, administered by the Administrative Director of the Division of Workers' Compensation, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires the payment of disability benefits to eligible individuals for injuries sustained in the course of employment that cause permanent disability, and specifies that the amount of those payments be computed in accordance with a prescribed formula. This bill would revise the formula for computing those payments for injuries causing permanent disability, which occur on or after January 1, 2008, as specified. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) In enacting Assembly Bill 227 (Chapter 635 of the Statutes of 2003), Senate Bill 228 (Chapter 639 of the Statutes of 2003), and Senate Bill 899 (Chapter 34 of the Statutes of 2004), it was the intent of the Legislature to create a workers' compensation system that is fair to all parties involved. (b) Ensuring that permanently disabled workers receive fair compensation is a high priority of the Legislature. (c) Until we know the full effect workers' compensation reform has had on the workers' compensation system in general, and permanently disabled workers in particular, we should ensure that permanently disabled workers receive adequate benefits. (d) In ensuring adequate benefit levels to permanently disabled workers, it is not the intent of the Legislature to undermine the positive effect workers' compensation reform has had on California's employers and workers. SEC. 2. Section 4658 of the Labor Code is amended to read: 4658. (a) For injuries occurring prior to January 1, 1992, if the injury causes permanent disability, the percentage of disability to total disability shall be determined, and the disability payment computed and allowed, according to paragraph (1). However, in no event shall the disability payment allowed be less than the disability payment computed according to paragraph (2). (1) Column 2--Number of weeks for which two-thirds of average weekly earnings Column 1- allowed for each 1 -Range percent of percentage of permanent disability of permanent within percentage disability incurred: range: Under 10.............. 3 10-19.75.............. 4 20-29.75.............. 5 30-49.75.............. 6 50-69.75.............. 7 70-99.75.............. 8 The number of weeks for which payments shall be allowed set forth in column 2 above based upon the percentage of permanent disability set forth in column 1 above shall be cumulative, and the number of benefit weeks shall increase with the severity of the disability. The following schedule is illustrative of the computation of the number of benefit weeks: Column 1- - Column 2- Percentage - of Cumulative permanent number disability of incurred: benefit weeks: 5................... 15.00 10................... 30.25 15................... 50.25 20................... 70.50 25................... 95.50 30................... 120.75 35................... 150.75 40................... 180.75 45................... 210.75 50................... 241.00 55................... 276.00 60................... 311.00 65................... 346.00 70................... 381.25 75................... 421.25 80................... 461.25 85................... 501.25 90................... 541.25 95................... 581.25 100.................. for life (2) Two-thirds of the average weekly earnings for four weeks for each 1 percent of disability, where, for the purposes of this subdivision, the average weekly earnings shall be taken at not more than seventy-eight dollars and seventy-five cents ($78.75). (b) This subdivision shall apply to injuries occurring on or after January 1, 1992. If the injury causes permanent disability, the percentage of disability to total disability shall be determined, and the disability payment computed and allowed, according to paragraph (1). However, in no event shall the disability payment allowed be less than the disability payment computed according to paragraph (2). (1) Column 2--Number of weeks for which two-thirds of average weekly earnings Column 1- allowed for each 1 -Range percent of percentage of permanent disability of permanent within percentage disability incurred: range: Under 10.............. 3 10-19.75.............. 4 20-24.75.............. 5 25-29.75.............. 6 30-49.75.............. 7 50-69.75.............. 8 70-99.75.............. 9 The numbers set forth in column 2 above are based upon the percentage of permanent disability set forth in column 1 above and shall be cumulative, and shall increase with the severity of the disability in the manner illustrated in subdivision (a). (2) Two-thirds of the average weekly earnings for four weeks for each 1 percent of disability, where, for the purposes of this subdivision, the average weekly earnings shall be taken at not more than seventy-eight dollars and seventy-five cents ($78.75). (c) This subdivision shall apply to injuries occurring on or after January 1, 2004. If the injury causes permanent disability, the percentage of disability to total disability shall be determined, and the disability payment computed and allowed as follows: Column 2--Number of weeks for which two-thirds of average weekly earnings Column 1- allowed for each 1 -Range percent of percentage of permanent disability of permanent within percentage disability incurred: range: Under 10.............. 4 10-19.75.............. 5 20-24.75.............. 5 25-29.75.............. 6 30-49.75.............. 7 50-69.75.............. 8 70-99.75.............. 9 The numbers set forth in column 2 above are based upon the percentage of permanent disability set forth in column 1 above and shall be cumulative, and shall increase with the severity of the disability in the manner illustrated in subdivision (a). (d) (1) This subdivision shall apply to injuries occurring on or after the effective date of the revised permanent disability schedule adopted by the administrative director pursuant to Section 4660. If the injury causes permanent disability, the percentage of disability to total disability shall be determined, and the basic disability payment computed as follows: Column 2--Number of weeks for which two-thirds of average weekly earnings Column 1- allowed for each 1 -Range percent of percentage of permanent disability of permanent within percentage disability incurred: range: 0.25-9.75............. 3 10-14.75.............. 4 15-24.75.............. 5 25-29.75.............. 6 30-49.75.............. 7 50-69.75.............. 8 70-99.75.............. 16 The numbers set forth in column 2 above are based upon the percentage of permanent disability set forth in column 1 above and shall be cumulative, and shall increase with the severity of the disability in the manner illustrated in subdivision (a). (2) If, within 60 days of a disability becoming permanent and stationary, an employer does not offer the injured employee regular work, modified work, or alternative work, in the form and manner prescribed by the administrative director, for a period of at least 12 months, each disability payment remaining to be paid to the injured employee from the date of the end of the 60-day period shall be paid in accordance with paragraph (1) and increased by 15 percent. This paragraph shall not apply to an employer that employs fewer than 50 employees. (3) (A) If, within 60 days of a disability becoming permanent and stationary, an employer offers the injured employee regular work, modified work, or alternative work, in the form and manner prescribed by the administrative director, for a period of at least 12 months, and regardless of whether the injured employee accepts or rejects the offer, each disability payment remaining to be paid to the injured employee from the date the offer was made shall be paid in accordance with paragraph (1) and decreased by 15 percent. (B) If the regular work, modified work, or alternative work is terminated by the employer before the end of the period for which disability payments are due the injured employee, the amount of each of the remaining disability payments shall be paid in accordance with paragraph (1) and increased by 15 percent. An employee who voluntarily terminates employment shall not be eligible for payment under this subparagraph. This paragraph shall not apply to an employer that employs fewer than 50 employees. (4) For compensable claims arising before April 30, 2004, the schedule provided in this subdivision shall not apply to the determination of permanent disabilities when there has been either a comprehensive medical-legal report or a report by a treating physician, indicating the existence of permanent disability, or when the employer is required to provide the notice required by Section 4061 to the injured worker. (e) This subdivision shall apply to injuries occurring on or after January 1, 2008. If the injury causes permanent disability, the percentage of disability to total disability shall be determined, and the disability payment computed and allowed as follows: Column 2--Number of weeks for which two-thirds of Column 1- average weekly earnings -Range of percentage allowed for each 1 percent of permanent of permanent disability disability incurred: within percentage range: 0-9.75 4 10-14.75 5 15-24.75 7 25-29.75 8 30-49.75 9 50-69.75 11 70-99.75 21 The numbers set forth in column 2 above are based upon the percentage of permanent disability set forth in column 1 above and shall be cumulative, and shall increase with the severity of the disability in the manner illustrated in subdivision (a). (f) This subdivision shall apply to injuries occurring on or after January 1, 2009. If the injury causes permanent disability, the percentage of disability to total disability shall be determined, and the disability payment computed and allowed as follows: Column 2--Number of weeks for which two-thirds of Column 1- average weekly earnings -Range of percentage allowed for each 1 percent of permanent of permanent disability disability incurred: within percentage range: 0-9.75 5 10-14.75 7 15-24.75 8 25-29.75 10 30-49.75 12 50-69.75 13 70-99.75 27 The numbers set forth in column 2 above are based upon the percentage of permanent disability set forth in column 1 above and shall be cumulative, and shall increase with the severity of the disability in the manner illustrated in subdivision (a). (g) This subdivision shall apply to injuries occurring on or after January 1, 2010. If the injury causes permanent disability, the percentage of disability to total disability shall be determined, and the disability payment computed and allowed as follows: Column 2--Number of weeks for which two-thirds of Column 1- average weekly earnings -Range of percentage allowed for each 1 percent of permanent of permanent disability disability incurred: within percentage range: 0-9.75 6 10-14.75 8 15-24.75 10 25-29.75 12 30-49.75 14 50-69.75 16 70-99.75 32 The numbers set forth in column 2 above are based upon the percentage of permanent disability set forth in column 1 above and shall be cumulative, and shall increase with the severity of the disability in the manner illustrated in subdivision (a).