First Job Killer Bill Seeks to Roll Back 2012 Workers’ Comp Reforms

The California Chamber of Commerce identified the first “job killer” bill of the year. SB 626 (Beall; D-San Jose) severely undercuts the recent workers’ compensation reform deal agreed to by labor unions and employers.

The bill proposes dramatic cost increases for California employers and would leave them worse off than before the reforms of last year were enacted. 

SB 626 eliminates the entire balance of the deal and would erase hundreds of millions of dollars in projected savings. Specifically, SB 626 would roll back reforms dealing with timely, high-quality medical treatment and a more predictable, and less litigious, permanent disability system.

CalChamber will continue to add legislation to the “job killer” list throughout the year as bills are amended or new language is introduced.

For the complete story, please visit this CalChamber Top Story. For more information on past job killers, please visit CalChamber’s Job Killers page.

Workers’ Compensation Reform Requires Updates to Notice and Pamphlet

This year, California’s Legislature passed Senate Bill 863, containing wide-ranging workers’ compensation reform measures. SB 863 takes effect on Jan. 1, 2013.

Some of its provisions will be effective immediately, requiring changes to notices that explain employee rights and employer obligations. California employers must post a notice explaining employee rights and employer obligations under the state workers’ compensation system and must provide all employees with a workers’ compensation pamphlet at the time of hire.

CalChamber worked with the Division of Workers’ Compensation (DWC) to obtain approved language for the required workers’ compensation notice and pamphlet. CalChamber’s 2013 California and Federal Employment Notices Poster and Workers’ Compensation pamphlet both contain language required by law for January 1, 2013, and approved by the DWC. The 2013 California and Federal Employment Notices Poster contains the 16 state and federal employment notices every California employer must post.

Although some of the bill’s measures will take effect January 1, other provisions require administrative/regulatory action prior to implementation.

Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel

CalChamber offers a convenient and affordable way to comply with required employment notices. The Required Notices Kit includes a 2013 California and Federal Employment Notices Poster and 20 copies each of all five pamphlets employees must receive. For more information, visit this CalChamber store page.

Workers’ Compensation Reform: Impact for Employers and Webinar Now Available

In September, Governor Edmund G. Brown Jr. signed workers’ compensation reform legislation supported by the California Chamber of Commerce. The legislation, SB 863 (De León; D-Los Angeles), offsets necessary increases in permanent disability benefits and potentially lowers system costs for employers by:

• Reducing delays and litigation in the system;
• Addressing the lien epidemic;
• Shortening the medical-legal process;
• Implementing an independent medical review system; and
• Streamlining the permanent disability schedule.

Cost pressures in the workers’ compensation system have eroded much of the savings realized in the last round of reforms. As a result, California employers’ premiums are increasing as the overall cost of the system continues to rise.

SB 863 is a comprehensive reform bill. Some laws take effect January 1, 2013, but many of the laws require administrative/regulatory action before implementation. The Department of Industrial Relations (DIR) and the Division of Workers’ Compensation (DWC) are working to prioritize and implement these regulations.

It is anticipated that some regulations will be implemented and effective for January 1, 2013, and others will be implemented over the next year. 

The DIR and DWC will also need to provide any updates to required notices that explain employee rights and employer obligations. CalChamber’s employment law experts will continually monitor any updates to these notices and update our poster and pamphlet products as needed. These products are available at the CalChamber store.

Employers can also expect that there will be challenges to the new reform laws through litigation and challenges during the regulatory process.

CalChamber members can now take advantage of this special, workers' compensation reform webinar (sign-in required) that explains the recent workers’ compensation reforms and outlines what steps businesses must take to implement the reforms effectively.

The webinar was conducted by the CalChamber, the Workers’ Compensation Action Network (WCAN) and the California Coalition on Workers’ Compensation. 

CalChamber will continue to update members on any changes that affect employer obligations with respect to the workers’ compensation system.  

 Not a member? Take a look at the benefits of membership.

CalChamber, Coalition to Offer Free Webinar on Recent Workers’ Comp Reforms

The California Chamber of Commerce, Workers’ Compensation Action Network (WCAN) and California Coalition on Workers’ Compensation are making available a free webinar to explain the recent workers’ compensation reforms and outline what steps businesses must take to implement the reforms effectively.

SB 863 (De León; D-Los Angeles), recently signed by Governor Edmund G. Brown Jr., offsets necessary increases in permanent disability benefits and potentially lowers system costs for employers by reducing delays and litigation in the system, addressing the lien epidemic, shortening the medical-legal process, implementing an independent medical review system and streamlining the permanent disability schedule.

Senate Bill 863: Unpacking Recent Workers’ Comp Reforms webinar is being held on Wednesday, October 3, from 10:00 a.m.- 11:15 a.m.

Webinar attendees will learn:

• What’s inside the bill's 119 pages
• How will these reforms work
• How quickly will they take effect and how will employer costs be impacted
• What more needs to be done

Register for the webinar now.

Governor Signs Workers’ Compensation Reform Bill

Governor Edmund G. Brown Jr. signed California Chamber of Commerce-supported workers’ compensation reform legislation.

SB 863 (De León; D-Los Angeles) offsets necessary increases in permanent disability benefits and potentially lowers system costs for employers by:

• Reducing delays and litigation in the system;
• Addressing the lien epidemic;
• Shortening the medical-legal process;
• Implementing an independent medical review system; and
• Streamlining the permanent disability schedule.

Visit CalChamber.com for the full story.