Under current California workers' compensation law, employees injured while on the job are generally entitled to temporary disability benefits for a maximum of 104 weeks within a five-year period.

This cap on temporary disability benefits was enacted back in 2004, when the State Assembly embarked upon large-scale reform of the work comp system with the aim of cutting costs and introducing greater stability in the amount of benefits awarded.

However, many legislators/injured worker advocates have since grown disillusioned with this 104-week cap, noting that it fails to account for those workers whose injuries preclude them from returning to work within 104 weeks but who are also not ready/unwilling to go on permanent disability.

Recognizing this problem, Assemblyman Jose Solorio (D-Santa Ana) has introduced Assembly Bill 947 (AB 947), a measure that would extend the cap for temporary disability benefits from 104 weeks to 240 weeks (provided certain conditions are met).

The Assembly offers the following succinct definition of AB 947:

"[T]o address circumstances where medical treatment that is required to cure the injured worker's injuries takes longer, through no fault of the injured worker, than the 104 weeks of TD benefits allowed by law"

Not surprisingly, support for AB 947 remains divided among legislators.

In fact, a recently released analysis by the state Senate Appropriations Committee predicting that AB 947 could cost the California work comp system an additional $200 to $210 million a year has only served to strengthen this division.

(The Assembly Insurance Committee - run by Rep. Solorio - has disputed these estimates, stating that the Senate Appropriations Committee overestimated the costs of AB 947 by making the blanket assumption that every injured worker would use 240 weeks.)

The fate of AB 947 remains uncertain at this point. However, it is currently scheduled for a vote by the Senate Appropriations Committee.

Stay tuned for further updates in the area of workers' compensation law from our San Diego firm ...

If you have questions or would like to learn more about workers' compensation benefits, contact an experienced legal professional.

This post was for informational purposes only and is not to be construed as legal advice.

Related Resources:

Sacramento Business Journal "Analysis: Workers' comp disability cap extension could cost $210M more" Aug. 19, 2011

The Orange County Register "Analyst: Bill would up Calif. workers' comp costs" Aug. 18, 2011