SB 487 – A Proposed Amendment to California Labor Code Would Provide Major Benefits to Peace Officers and Firefighters Injured on Duty

Introduction

As a peace officer or firefighter, getting injured while on the job can be a difficult and stressful experience. Not only do you have to recover from the injury, but the financial burden of medical bills and lost wages can make things even harder. In many cases, workers who are injured on the job can recover compensation from a third party—like a negligent driver who causes an auto accident. However, under the current law, workers are required to repay their employers for workers’ compensation benefits when they receive a third-party settlement.

But there’s good news for injured peace officers and firefighters in California. A proposed amendment to the California Labor Code would provide significant relief by exempting peace officers and firefighters from having to reimburse their employers out of any third-party recovery. If passed, this change would mean more financial security for injured workers, and in this post, we’ll explain how it would work.

How the Current Law Works

Under current law, if you receive workers’ compensation benefits and later win a third-party settlement, your employer can recover what they’ve paid out through:

Liens: Your employer can claim a portion of your third-party recovery to reimburse themselves for past workers’ comp benefits, like medical treatment and temporary disability.

Credits: Your employer can apply credits against your settlement for future benefits (like additional medical care or time off). You’d have to use your third-party settlement money first before you can access additional workers’ comp benefits.

The Proposed Amendment

The proposed amendment would eliminate the employer’s right to assert liens and credits for peace officers and firefighters. If you recover a third-party settlement (for example, from an auto accident caused by someone else), your employer wouldn’t be able to claim any of that settlement back.

This means that you get to keep the full amount of your third-party recovery. Plus, if you need more medical treatment or time off after the settlement, you wouldn’t have to exhaust that recovery before receiving further workers’ comp benefits. The workers’ comp system would cover those future costs without requiring repayment from the settlement.

A Hypothetical Example

Here’s an example to show how this would work:

Imagine you’re a firefighter injured in an auto accident while on duty. Your employer covers $30,000 in medical expenses and temporary disability benefits. You then recover a third-party settlement of $50,000.

Under the current law, your employer could place a lien for the $30,000 they’ve already paid out, leaving you with just $20,000 after paying them back. If you need more medical treatment later, they could apply credits, meaning you’d have to use the entire $30,000 settlement before receiving additional workers’ comp benefits.  In many cases this effectively ends the injured worker’s right to receive additional compensation through the worker’s compensation system.

Under the proposed amendment, you keep the full $50,000. If you later need $20,000 more in medical treatment, you wouldn’t have to use your settlement funds first. Workers’ comp benefits would cover the future treatment, and you wouldn’t have to pay anything back to your employer.

Conclusion

The proposed amendment to California Labor Code would be a major win for peace officers and firefighters. It would allow injured workers to keep their full third-party recovery without the burden of paying back their employer. This change would provide more financial security for those who serve and protect our communities.

If you have any questions about how this amendment could affect your workers’ compensation case or need help with a third-party recovery claim, contact our firm. We specialize in representing police officers, firefighters, and other public safety workers, and we’re here to help you get the compensation you deserve.