With state lawmakers scheduled to return to Sacramento this week for a shortened session, business groups have expressed concern about several legislative proposals to expand workers’ compensation measures.
Gov. Gavin Newsom’s executive order on rebuttable presumptions expired July 5.
John Kabateck, California state director with the National Federation of Independent Business (NFIB) told the Northern California Record that at least three bills under consideration are opposed by a broad coalition of business groups, and letters expressing their concerns have been sent to legislative leaders.
“We continue to believe presumptions are not necessary for workers’ comp to take care of workers who become ill,” Kabateck said. “For employees who have legitimate claims that are tracked to work-related injuries or health problems, the system is in place to take care of them.”
Assemblywoman Lorena Gonzalez, D-San Diego, is sponsoring AB 196, which would make permanent the presumption that essential employees contracted COVID-19 while on the job.
SB 1159, sponsored by Sen. Jerry Hill, D-San Mateo, also seeks to expand workers’ compensation COVID-19 presumptions.
The SB 1159 June 23 Senate Floor analysis states, “According to the Senate Appropriations Committee, the Department of Industrial Relations indicates that the bill would result in annual costs to its Division of Workers Compensation (DWC) of $10 million minimally.”
If passed, the cost throughout the public and private sector could run much higher.
“The Workers’ Compensation Insurance Rating Bureau (WCIRB) estimates a conclusive presumption between $2.2 and $33.6 billion, with the most likely figure being around $11.2 billion. As a point of reference, the 2012 workers’ compensation reform increased workers’ compensation benefits across the board for all injured workers by $1.24 billion,” the May 11 Senate Committee analysis states.
“While it may appear gauche to bring up cost in the face of a pandemic wreaking havoc on our world, these dollars will need to come from local governments and private employers who are struggling to respond to COVID-19,” the analysis states.
The WCIRB estimates 15,000 coronavirus-related claims have been filed from March through June, Insurance Journal reported.
“Presumptions create massive additional risk on small businesses to pay for COVID cases that could likely be caught somewhere other than work,” Kabateck said. “When the very best science and health experts still trying to understand breadth and depth of this horrible virus and how it spreads, how on earth is a small employer expected to bear the burden?”
The Legislature is expected to adjourn for the year on Aug. 31.