BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: June 24, 2009 2009-2010 Regular
Session
Consultant: Rodger Dillon Fiscal:No
Urgency: No
Bill No: AB 1227
Author: Feuer
Version: June 15, 2009
SUBJECT
Workers' compensation.
KEY ISSUE
Should specified law-enforcement-related public employees who
are injured on the job be granted the right to receive a leave
of absence of up to one year without loss of salary in lieu of
temporary disability payments?
PURPOSE
To remove the restriction on "one-year leave of absence with
full salary (a.k.a., 4850 time)" that provides that only
specified safety employees who are members of certain pension
plans are eligible.
ANALYSIS
Existing law:
Establishes a comprehensive system of workers' compensation
that provides a range of benefits for employees who are
injured on the job. These benefits include temporary
disability payments, which are designed to be wage replacement
payments for the period the injured employee is temporarily
unable to work due to the on-the-job injury. Temporary
disability benefits are intended to replace two-thirds of the
employee's regular wages, subject to a maximum cap.
Provides that certain safety officers who are members of the
Public Employees Retirement System, the Los Angeles City
Employees Retirement System, or subject to the County
Employees Retirement Law of 1937 who are injured on the job
are entitled to a "leave of absence" of up to one year with
full pay in lieu of temporary disability payments. Because
this benefit is set forth in Labor Code 4850, the benefit has
come to be known as "4850 time" or "4850 benefits."
Lists the following safety officers as being eligible for 4850
time: city police officers; county sheriffs and sheriffs'
deputies; city, county or district firefighters; district
attorney investigators; probation officers; certain special
district police officers; certain lifeguards; certain airport
law enforcement officers; certain harbor security personnel;
and police officers of the Los Angeles Unified School
District.
Denies eligibility for 4850 time to persons who work in
safety-related offices who are classified as clerks,
stenographers, telephone operators, machinists, and mechanics.
This Bill:
1.Repeals the restriction in Labor Code Section 4850 that limits
4850 time to safety officers who are members of the Public
Employees Retirement System, the Los Angeles City Employees
Retirement System, or subject to the County Employees
Retirement Law of 1937;
2.Adds deputized local park rangers, California Community
College police, and police officers of a school district to
the list of eligible individuals;
3.Provides that the section shall not apply to any persons
described in subdivision (b) who are employees of the City and
County of San Francisco.
COMMENTS
Hearing Date: June 24, 2009 AB 1227
Consultant: Rodger Dillon Page 2
Senate Committee on Labor and Industrial Relations
1. Purpose of 4850 time.
As a general rule, injured employees are entitled to
temporary disability benefits equal to 2/3 of their regular
wages. This target of replacing 2/3 of wages during the
period an employee is off work is designed to make the
employee whole, since workers' compensation benefits are not
subject to social security or income taxes. Thus, the 2/3
rate is designed to approximate full take home pay. However,
for safety officers, in recognition of the dangers they
inherently face on the job, a more generous benefit was
created. As interpreted by the courts, the safety officer
receives his or her full pay, tax-free, for up to one year
after the injury. Subsequent to the one-year period, if the
officer is still temporarily disabled, he or she would receive
the same temporary disability benefits as any other injured
worker.
2. Proponent Arguments :
The author points out that San Jose City police officers and
firefighters, San Diego City Unified School District police
officers, and several other municipal public safety employees
in the state are excluded from 4850 benefits when injured in
the line of duty due to participation in other retirement
systems. Conversely, they must seek supplemental disability
payments through their respective collective units. This bill
would rectify this inequity in current law, say supporters.
The sponsor describes this as an oversight that results in
some peace officers and firefighters working side-by-side with
other safety officers and not being protected under the same
workers' compensation laws.
3. Opponent Arguments :
Opponents believe that AB1227 provisions unreasonably increase
public employer salary costs by tens of millions of dollars
that are over and above the workers' compensation temporary
disability liability. The bill's provisions, they argue,
would be particularly burdensome at a time when local
government budget resources have been severely reduced due to
the dramatic downturn in the state's economy. The impact on
Hearing Date: June 24, 2009 AB 1227
Consultant: Rodger Dillon Page 3
Senate Committee on Labor and Industrial Relations
parks, school districts, and colleges in these hard economic
times will cause additional reductions in force and layoffs of
more teachers in already understaffed classrooms. Opponents
also state that studies have shown that the payment of
temporary disability at the rate of 100% of wages tax free can
lead to recovery times of up to twice the length of injuries
where similar benefits are not provided.
4. Previous Legislation:
AB 1227 is essentially identical to AB 419 (Lieber) of 2007,
which was approved by the Legislature but vetoed by the
governor. In his veto message, the governor said:
This bill would increase workers' compensation costs to some
cities and counties by requiring them to provide certain
injured workers a leave of absence without loss of salary in
lieu of regular temporary disability payments. While this
benefit is currently conferred on some sworn peace officers,
this bill would expand it to park rangers, community college
police, and many others. Eligibility for this benefit is
best left to locals, not the state, to determine.
SUPPORT
Police Officers Research Association of California (PORAC)
(Sponsor)
California Professional Firefighters (Co-Sponsor)
California Applicants' Attorneys Association
California State Employees Association
OPPOSITION
California Association of Joint Powers Authority
Department of Industrial Relations
* * *
Hearing Date: June 24, 2009 AB 1227
Consultant: Rodger Dillon Page 4
Senate Committee on Labor and Industrial Relations