BILL ANALYSIS Ó
SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
Senator Tony Mendoza, Chair
2015 - 2016 Regular
Bill No: SB 623 Hearing Date: April 8,
2015
-----------------------------------------------------------------
|Author: |Lara |
|-----------+-----------------------------------------------------|
|Version: |February 27, 2015 |
-----------------------------------------------------------------
-----------------------------------------------------------------
|Urgency: |No |Fiscal: |Yes |
-----------------------------------------------------------------
-----------------------------------------------------------------
|Consultant:|Gideon Baum |
| | |
-----------------------------------------------------------------
Subject: Workers' compensation: benefits
KEY ISSUE
Should the Legislature restate and reinforce existing law on the
right of undocumented workers to be eligible for benefits from
the Uninsured Employers Benefits Trust Fund (UEBTF) and the
Subsequent Injuries Benefit Trust Fund (SIBTF)?
ANALYSIS
Existing law establishes a workers' compensation system that
provides benefits to an employee who suffers from an injury or
illness that arises out of and in the course of employment,
irrespective of fault. This system requires all employers to
secure payment of benefits by either securing the consent of the
Department of Industrial Relations to self-insure or by securing
insurance against liability from an insurance company duly
authorized by the state.
Existing law provides that all protections, rights, and remedies
available under state law, except any reinstatement remedy
prohibited by federal law, are available to all individuals
regardless of immigration status who have applied for
SB 623 (Lara) Page 2
of ?
employment, or who are or who have been employed, in California.
(Labor Code §1171.5)
Existing law creates the Uninsured Employers Benefits Trust Fund
(UEBTF), which provides benefits for injured workers who are
employed by illegally uninsured employers. Benefits awarded
from the UEBTF constitute a liquated damage against the
illegally uninsured employer, which the director may pursue
against the employer and/or significant shareholders.
(Labor Code §§3716- 3717)
Existing law creates the Subsequent Injuries Benefit Trust Fund
(SIBTF), which provides additional compensation for injured
workers who are receiving PD benefits and suffer a second injury
that the degree of injury caused by the second injury is greater
than what would have resulted from the first permanent injury
alone. (Labor Code §4751)
Existing federal law provides that a State may provide that an
individual who is not lawfully present in the United States is
eligible for any State or local public benefit for which such
alien would otherwise be ineligible through the enactment of a
State law which affirmatively provides for such eligibility. (8
U.S. Code § 1621(d))
This bill would restate and reiterate existing law, which
currently allows undocumented injured workers to be eligible for
benefits from the UEBTF and the SIBTF.
This bill would also declare the intent of the Legislature to
override regulations which prevent undocumented workers from
accessing benefits from the UEBTF and the SIBTF.
COMMENTS
1. Need for this bill?
As was noted above, existing law has provided that, with some
limited exceptions, injured workers may not be denied workers'
compensation benefits on the basis of the injured worker's
immigration status. These protections were created in 2002 by
SB 1818 (Statues of 2002, Chapter 1071), which was supported
by a broad coalition including Lieutenant Governor Cruz
Bustamante, the California Labor Federation, and the
SB 623 (Lara) Page 3
of ?
California Applicants' Attorneys Association. Further, this
legislation appears to meet the requirements of the federal
statute discussed above for ensuring that an undocumented
worker would be eligible for benefits from a state program.
Despite this, California regulations still prohibit an
undocumented worker from receiving benefits from both the
UEBTF and the SIBTF, as the regulations have not been updated
since 1998. As such, these regulations have been out of
compliance with state law since 2003. It is unknown, however,
if this has resulted in the loss of any benefits for
undocumented injured workers.
SB 623 would clarify existing law, and also state that it is
the intent of the Legislature that these out-of-date
regulations be overridden.
2. Staff Comments:
As was noted above, SB 623 is a restatement of existing law.
However, the new sections are currently not listed as
declarative of existing law. This could create legal
confusion for undocumented workers seeking their benefits,
leading to unnecessary delays due to litigation. Therefore,
the Committee may wish to consider the following amendments:
On page 2, between lines 14 and 15, insert the following: (d)
The provisions of this section are declaratory of existing
law.
On page 2, after line 28, insert the following: (d) The
provisions of this section are declaratory of existing law.
3. Proponent Arguments :
The California Applicants' Attorneys Association (CAAA) and
the California Chamber of Commerce strongly support SB 623,
arguing that SB 623 would clarify current law so that no
injured worker is refused benefits from the Uninsured
Employers Benefit Trust Fund (UEBTF) and the Subsequent
Injuries Benefit Trust Fund (SIBTF) based on their immigration
status. CAAA argues that it is time for the out-of-date
Division of Workers' Compensation regulations which allowed
undocumented workers from being excluded from these benefits.
SB 623 (Lara) Page 4
of ?
4. Opponent Arguments :
None on file.
5. Prior Legislation :
SB 1818 (Romero), Statues of 2002, Chapter 1071, was discussed
above.
SUPPORT
California Teamsters Public Affairs Council (Co-Sponsor)
Association of California Insurance Companies
California Association of Joint Powers Authorities
California Chamber of Commerce
California Coalition on Workers' Compensation
California Conference of Machinists
California Conference of the Amalgamated Transit Union
California Labor Federation, AFL-CIO
California Manufacturers and Technology Association
California Nurses Association
California Restaurant Association
California Rural Legal Assistance Foundation
Californian Applicants' Attorney Association
Engineers & Scientists of California, AFTPE Local 20, AFL-CIO
International Longshore and Warehouse Union
Professional & Technical Engineers, IFTPE Local 21, AFL-CIO
Utility Workers Union of America
OPPOSITION
None on File.
-- END --