California Gov. Arnold Schwarzenegger on Tuesday, September 30, vetoed two
bills that opponents said would have rolled back workers’ compensation reforms
in the state and also increased costs.
The pair of state Senate bills would have changed two areas of workers’ comp
legislation, with one increasing permanent disability payments and the other
adding various qualifications to apportionment calculations.
Supporters of the legislation said the measures would ensure that workers
with permanent disability injuries are justly compensated and not unfairly
denied benefits.
S.B. 1717 would have doubled permanent disability benefit payments by
increasing, over three years, the number of weeks injured workers receive
benefits. It also would have repealed a portion of a return-to-work incentive
employers sought as part of workers’ comp reforms signed into law in 2004.
In vetoing the bill, Schwarzenegger said he could not justify a
“billion-dollar benefit increase” at a time when medical costs in the workers’
comp system continue to climb. He noted the state Workers’ Compensation
Insurance Rating Bureau’s recommended 16 percent increase in premiums in
2009.
S.B. 1115 would have prohibited discrimination on the basis of race,
religion, color, national origin, age, gender, marital status, sex or genetic
predisposition when doctors apportion a claim’s medical causation for the
purpose of determining an employer’s liability for permanent disability
awards.
Schwarzenegger said that although he supported the intention of the measure,
he did not view it as necessary.
“Current law, as well as court rulings, adequately protects injured workers
from inappropriate application of apportionment statutes,” he said, noting that
he was concerned the bill would have inadvertently created new ambiguities and
result in increased litigation.
Filed by Sally Roberts of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.
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