Amended in Assembly March 20, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1746


Introduced by Assembly Member Alejo

February 14, 2014


An act to amend Sectionbegin delete 2923end deletebegin insert 5502end insert of the Labor Code, relating tobegin delete employment.end deletebegin insert workers’ compensation.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1746, as amended, Alejo. begin deleteEmployment: death or incapacity of employer. end deletebegin insertWorkers’ compensation: proceedings: expedited hearings.end insert

begin insert

Existing law establishes a workers’ compensation system to compensate an employee for injuries sustained in the course of his or her employment. Under this system, the Workers’ Compensation Appeals Board has jurisdiction to adjudicate claims relating to workers’ compensation. Existing law creates the Administrative Director of the Division of Workers’ Compensation, who has specified powers and duties relating to the workers’ compensation trial process. Existing law requires the administrative director to establish a priority conference calendar for cases in which the employee is represented by an attorney and the disputed issues are employment or injury, as specified.

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begin insert

This bill would additionally require that cases in which the employee is or was employed by an illegally uninsured employer and the disputed issues are employment or injury, as specified, be placed on the priority conference calendar established under existing law.

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Existing law generally requires an employee to continue his or her service after notice of the death or incapacity of his or her employer, as necessary to protect from serious injury the interests of the employer’s successor in interest, until a reasonable time after notice of the facts has been communicated to that successor. Existing law requires the successor to compensate the employee for his or her service according to the terms of the contract of employment.

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This bill would make technical, nonsubstantive changes to those provisions.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 5502 of the end insertbegin insertLabor Codeend insertbegin insert is amended to
2read:end insert

3

5502.  

(a) Except as provided in subdivisions (b) and (d), the
4hearing shall be held not less than 10 days, and not more than 60
5days, after the date a declaration of readiness to proceed, on a form
6prescribed by the appeals board, is filed. If a claim form has been
7filed for an injury occurring on or after January 1, 1990, and before
8January 1, 1994, an application for adjudication shall accompany
9the declaration of readiness to proceed.

10(b) The administrative director shall establish a priority calendar
11for issues requiring an expedited hearing and decision. A hearing
12shall be held and a determination as to the rights of the parties
13shall be made and filed within 30 days after the declaration of
14readiness to proceed is filed if the issues in dispute are any of the
15 following, provided that if an expedited hearing is requested, no
16other issue may be heard until the medical provider network dispute
17is resolved:

18(1) The employee’s entitlement to medical treatment pursuant
19to Section 4600, except for treatment issues determined pursuant
20to Sections 4610 and 4610.5.

21(2) Whether the injured employee is required to obtain treatment
22within a medical provider network.

23(3) A medical treatment appointment or medical-legal
24examination.

25(4) The employee’s entitlement to, or the amount of, temporary
26disability indemnity payments.

27(5) The employee’s entitlement to compensation from one or
28more responsible employers when two or more employers dispute
29liability as among themselves.

P3    1(6) Any other issues requiring an expedited hearing and
2determination as prescribed in rules and regulations of the
3administrative director.

4(c) The administrative director shall establish a priority
5conference calendar for cases in which the employee is represented
6by an attorneybegin insert or is or was employed by an illegally uninsured
7employerend insert
and the issues in dispute are employment or injury arising
8out of employment or in the course of employment. The conference
9shall be conducted by a workers’ compensation administrative law
10judge within 30 days after the declaration of readiness to proceed.
11If the dispute cannot be resolved at the conference, a trial shall be
12set as expeditiously as possible, unless good cause is shown why
13discovery is not complete, in which case status conferences shall
14be held at regular intervals. The case shall be set for trial when
15discovery is complete, or when the workers’ compensation
16administrative law judge determines that the parties have had
17sufficient time in which to complete reasonable discovery. A
18determination as to the rights of the parties shall be made and filed
19within 30 days after the trial.

20(d) (1) In all cases, a mandatory settlement conference, except
21a lien conference or a mandatory settlement lien conference, shall
22be conducted not less than 10 days, and not more than 30 days,
23after the filing of a declaration of readiness to proceed. If the
24dispute is not resolved, the regular hearing, except a lien trial, shall
25be held within 75 days after the declaration of readiness to proceed
26is filed.

27(2) The settlement conference shall be conducted by a workers’
28compensation administrative law judge or by a referee who is
29eligible to be a workers’ compensation administrative law judge
30or eligible to be an arbitrator under Section 5270.5. At the
31mandatory settlement conference, the referee or workers’
32compensation administrative law judge shall have the authority to
33resolve the dispute, including the authority to approve a
34compromise and release or issue a stipulated finding and award,
35and if the dispute cannot be resolved, to frame the issues and
36stipulations for trial. The appeals board shall adopt any regulations
37needed to implement this subdivision. The presiding workers’
38compensation administrative law judge shall supervise settlement
39conference referees in the performance of their judicial functions
40under this subdivision.

P4    1(3) If the claim is not resolved at the mandatory settlement
2conference, the parties shall file a pretrial conference statement
3noting the specific issues in dispute, each party’s proposed
4 permanent disability rating, and listing the exhibits, and disclosing
5witnesses. Discovery shall close on the date of the mandatory
6settlement conference. Evidence not disclosed or obtained
7thereafter shall not be admissible unless the proponent of the
8evidence can demonstrate that it was not available or could not
9have been discovered by the exercise of due diligence prior to the
10settlement conference.

11(e) In cases involving the Director of Industrial Relations in his
12or her capacity as administrator of the Uninsured Employers Fund,
13this section shall not apply unless proof of service, as specified in
14paragraph (1) of subdivision (d) of Section 3716, has been filed
15with the appeals board and provided to the Director of Industrial
16Relations, valid jurisdiction has been established over the employer,
17and the fund has been joined.

18(f) Except as provided in subdivisionbegin delete (a) and in Section 4065,
19the provisions ofend delete
begin insert (a),end insert this section shall apply irrespective of the
20date of injury.

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21

SECTION 1.  

Section 2923 of the Labor Code is amended to
22read:

23

2923.  

An employee, unless the term of his or her service has
24expired or unless the employee has a right to discontinue it at any
25time without notice, shall continue his or her service after notice
26of the death or incapacity of his or her employer, as necessary to
27protect from serious injury the interests of the employer’s successor
28in interest, until a reasonable time after notice of the facts has been
29communicated to that successor. The successor shall compensate
30the employee for his or her service according to the terms of the
31contract of employment.

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