Special Report: 2024 California Workers’ Compensation Bills

by Sure Log
October 8th, 2024

The 2024 California legislative season is over. The Legislature had until Aug. 31, 2024, to pass bills, and Gov. Gavin Newsom had until Sept. 30, 2024, to sign or veto them. The bills signed by the governor take effect Jan. 1, 2025.

The 2024 legislative session was fairly quiet as it relates to the California workers’ compensation process. Aside from the electronic signature provision, it is probably more notable for the bills that were vetoed than those signed into law.

Bills Signed Into Law

AB 2337 — Electronic Signatures. The bill adopts two new statutes, LC 110.5 and LC 3206.5, which provide that documents requiring a signature may be filed with an “electronic signature,” subject to restrictions or requirements adopted by the administrative director or the WCAB.

The legislative analysis notes that during the COVID-19 state of emergency, the WCAB authorized electronic signatures on a compromise and release, and that such authorization was rescinded when the state of emergency was terminated. It was noted that electronic signatures were effectively used in workers’ compensation proceedings for three years, and that California explicitly authorizes electronic signatures in civil proceedings. AB 2337 is intended to authorize the use of electronic signatures on a C&R and other documents and filings in proceedings before WCAB, modernizing them for the benefit of all participants. For further discussion, see “Sullivan on Comp” Section 15.16 Filing of Document.

AB 1870 — Notice of Right to an Attorney. The bill amends LC 3550 to require employers to provide notice of an injured employee’s ability to consult a licensed attorney to advise them of their rights under workers’ compensations laws, and that in most instances, attorney fees will be paid from an injured employee’s recovery.

The legislative analysis notes that a 2010 study conducted by the Commission on Health and Safety and Workers’ Compensation found that workers’ compensation benefit notices were too voluminous, complex and overwhelming. AB 335 was passed in 2011 to include notice of the right to consult with an attorney as appropriate when serving specified claims notices on an employee. AB 1870 builds on that requirement by requiring employers to include an employee’s right to consult an attorney in their workers’ compensation employee rights notice. For further discussion, see “Sullivan on Comp” Section 6.3 Pre-Injury Notice.

AB 1239 — Extension of Prepaid Card Program. The bill amends LC 4651 to extend the repeal date of the program allowing indemnity payments to be deposited into a prepaid card account for the employee to Jan. 1, 2027. The program was set to be repealed Jan. 1, 2025.

The legislative analysis notes that the prepaid debit card program is needed because transmitting indemnity benefits to injured workers by either a paper check or direct deposit both pose unique challenges for households in which no one has a bank account. A report on the program was still in the process of being completed, and without a proper review of the program, the current end date would result in disruption.

Bills Vetoed

SB 636 — In-State Licensing of Utilization Review Doctors. Commencing July 1, 2026, the bill would have required a private employer’s utilization review process under the workers’ compensation system to be performed by medical professionals licensed under California state law. The purpose of the bill was to allow the Medical Board of California to discipline medical professionals performing UR if they violate practice standards.

The governor’s veto message expressed concern about the lack of data to warrant the changes proposed by the bill. Gov. Newsom believes existing law provides a regulatory structure that holds UR organizations and their reviewers accountable for their decisions. He added that the bill would result in different treatment for employees of private versus public employers while also shrinking the pool of utilization reviewers, causing potential delays in medical treatment and increased administrative costs to private employers.

SB 1058 — LC 4850 Benefits for Park Rangers. The bill would have expanded eligibility to LC 4850 benefits to park rangers employed by a county or special district. It was argued that the duties of park rangers often overlapped with those of law enforcement and other peace officer entities who are afforded those benefits.

In his veto message, Gov. Newsom said the bill would significantly expand LC 4850 benefits that can be negotiated locally through the collective bargaining process. He added that many local governments face financial stress, and the addition of a well-intentioned but costly benefit should be left to local entities, particularly given the potential fiscal impact on counties and special districts that employ park rangers.

SB 1299 — Heat-Related Injury Presumption for Farmworkers. The bill would have created a presumption that a heat-related injury for farmworkers is compensable if an agricultural employer violated Cal/OSHA heat illness prevention standards. The purpose of the bill was to prevent increasing farmworker heat-related injury, illness and death, as climate change raises temperatures.

In his veto message, Gov. Newsom said creating a heat-illness presumption in the workers’ compensation system was not an effective way to increase protections for heat-related illness. He noted that enforcing heat illness prevention standards falls under the jurisdiction of Cal/OSHA, and he believes the workers’ compensation system is not equipped to make determinations about employers’ compliance with Cal/OSHA standards.