BILL ANALYSIS Ó
AB 2493
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2493 (Atkins) - As Introduced February 19, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill increases temporary disability benefits for all
rank-and-file and supervisory firefighters employed by the
Department of Forestry and Fire Protection (CalFIRE), regardless
of their work assignment, such that the employees receive 100%
of their gross pay while on disability leave, for up to one
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year.
FISCAL EFFECT:
1)Increased workers compensation cost to CalFIRE in the range of
$850,000 GF to provide a higher level of temporary disability
benefits based on the number and duration of current claims.
2)To the extent there is a behavioral response to the increased
benefits that either results in more claims or longer periods
of disability, the state would incur additional costs both for
(1) the higher level of benefits as well as (2) overtime
payments to cover for injured workers who are on leave. The
extent to which this would occur is difficult to predict, but
for each ten additional FTEs annually who are out on leave,
costs would increase by $350,000 GF for overtime coverage as
well as the marginal cost of the higher benefit amount for the
ten disabled workers.
3)Based on the higher benefit amount, CalFIRE indicates it would
likely request an increase in administrative staff to provide
additional oversight and management of disability cases and
claims. The number of staff would need to be justified based
on workload, commensurate with additional claims or additional
length of claims as a result of this bill. One staff would be
$120,000 per year and three staff would be $350,000 GF.
COMMENTS:
1)Purpose. This bill seeks to provide state-employed
firefighters with similar benefits available to local
firefighters. This bill is sponsored by CalFIRE Local 2881,
which represents CalFIRE firefighters.
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2)4800 and 4850 time. Current law grant special benefits to
certain employees of Department of Justice, California Highway
Patrol, and Department of Fish and Wildlife (Labor Code
sections 4800 and 4800.5) and local public safety and
firefighters (section 4850). These sections provide for a
year of leave at full salary if the individual is injured or
becomes ill on the job, before temporary disability (TD)
benefits commence. This year is commonly called "4800" or
"4850 time" The salary is not subject to state or federal
taxes, meaning an employee can take home substantially more in
weekly benefits than they normally earn while working. Public
employers have noted this creates a disincentive for injured
public safety officers to return to work, even if they are
able, due to the financial loss they would suffer when they
return. In the case of CalFIRE, firefighters who often are
eligible for substantial overtime, the extent to which this is
the case is unclear because it is not clear how 100% of gross
salary available through "4800 time" would compare to the
average take-home pay of firefighters that is inclusive of
overtime.
3)Covered employees. This bill provides an enhanced benefit for
all firefighters employed by CalFIRE, regardless of their
regularly assigned duties. Some statutes require "active" law
enforcement or firefighting duties in order to qualify for the
enhanced benefit. For example, local firefighters have access
to the enhanced benefit pursuant to Labor Code 4850, but
unlike the provisions in this bill, employees of local fire
agencies whose functions do not clearly fall within the scope
of active firefighting and prevention service are excluded.
4)Current CalFIRE benefits. Temporary disability (TD) is
available for all employees for a maximum of 104 weeks of
benefit. TD pays two-thirds of gross wages on a tax-free
basis, up to a maximum of $1,128 in 2016. Benefits in
addition to TD are addressed through collective bargaining.
The current MOU between the state and Bargaining Unit 8, which
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represents CalFIRE firefighters, provides for Industrial
Disability Leave (IDL), which provides 2/3 of gross pay for
on-the-job injuries for up to a year and Enhanced IDL (EIDL),
which provides the net salary for up to a year. EIDL only
applies to firefighters with serious physical injuries and any
complications directly related medically and attributable to a
fire, inmate assaults, and emergency medical responses,
experienced in the course of fighting an active fire. An
additional length of benefits applies to burn injuries. The
largest cost of this bill is the differential between EIDL
"net pay" benefits and the larger "100% of gross pay" benefits
that would be required by this bill.
5)Recent legislation. In 2013, SB 527 (Block) was signed into
law. SB 527 added lifeguards employed by the City of San
Diego to the list of public safety employees entitled to 4850
time. Proponents of that bill argued that the San Diego
lifeguards performed duties comparable to Los Angeles County
lifeguards, who already have this benefit.
Last year, AB 1451 (Chavez) sought to provide 4850 benefits to a
class of lifeguards employed by the City of Oceanside, arguing
that other lifeguards employed by San Diego and Los Angeles
who performed comparable duties already receive this benefit.
Governor Brown vetoed AB 1451. The veto message stated:
"This bill adds full-time lifeguards employed by the City
of Oceanside to the list of employees who are entitled up
to one year of leave, paid at full salary without payroll
tax deductions, if they suffer an illness or injury that
arises out of their job duties.
Recent data indicates public employers' costs related to
this disability leave benefit have increased at an alarming
rate. These cost figures give me pause to extend this
benefit further in state law. If the City of Oceanside
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wishes to offer full salary in lieu of temporary disability
for one year to their regular full-time lifeguards, they
are free to do so by means of the collective bargaining
process. Eligibility for this benefit is best left to the
City of Oceanside, not the state, to determine."
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081