BILL NUMBER: SB 1717 ENROLLED
BILL TEXT
PASSED THE SENATE MAY 27, 2008
PASSED THE ASSEMBLY AUGUST 29, 2008
AMENDED IN SENATE MAY 1, 2008
AMENDED IN SENATE APRIL 15, 2008
INTRODUCED BY Senator Perata
FEBRUARY 22, 2008
An act to amend Section 4658 of the Labor Code, relating to
workers' compensation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1717, Perata. Workers' compensation: permanent partial
disability benefits.
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
shall be computed in accordance with a prescribed formula. Existing
law provides that if, within 60 days of an employee's disability
becoming permanent and stationary, the employer does not offer the
injured employee regular work, modified work, or alternative work, as
specified, for the period of at least 12 months, or, if the regular
work, modified work, or alternative work is terminated before the end
of the period for which disability payments are due the injured
employee, the employer shall pay the employee an increased amount of
permanent disability benefits. Existing law also provides further
that, if within 60 days of a disability becoming permanent and
stationary, an employer offers the injured employee regular work,
modified work, or alternative work, for a period of at least 12
months, regardless of whether the injured employee accepts or rejects
the offer, the employer shall pay the employee a decreased amount of
permanent disability benefits.
This bill would eliminate those provisions requiring an employer
to pay an injured employee a decreased amount of permanent disability
benefits if, within 60 days of a disability becoming permanent and
stationary, the employer offers the injured employee regular work,
modified work, or alternative work, within those specified time
periods, regardless of whether the injured employee accepts or
rejects the offer. The bill would also revise the formula for
computing those benefits for injuries causing permanent disability,
which occur on or after January 1, 2009.
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) If, within 60 days of a disability becoming permanent and
stationary, any employer offers the injured employee regular work,
modified work, or alternative work and the regular, modified, 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.
(5) The changes made to this subdivision by this act shall apply
to injuries occurring on or after January 1, 2009.
(e) 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
average weekly
earnings
Column 1- allowed for each 1
-Range percent
of percentage of permanent
disability
of
permanent within percentage
disability incurred: 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, 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
average weekly
earnings
Column 1- allowed for each 1
-Range percent
of percentage of permanent
disability
of
permanent within percentage
disability incurred: 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, 2011. 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:
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).