Labor.
What changed between versions
Appropriates $3,018,000,000 from the General Fund to supplement the state's contribution to the Public Employees' Retirement Fund, apportioned as: $1,434,683,000 to the state miscellaneous member category, $83,555,000 to the state industrial member category, $174,232,000 to the state safety member category, and $1,325,530,000 to the state peace officer/firefighter member category. The funds apply to unfunded state liabilities in excess of base amounts for fiscal year 2026-27.
Removes the Administrative Director of the Division of Workers' Compensation from the $81,635 annual salary structure in Government Code Section 11553, and amends Labor Code Section 138.1 to reference that chapter for the director's salary.
Appropriates $1,000,000 from the General Fund to the Department of Finance for administrative costs related to the bill's provisions.
Requires all workers' compensation surcharges and assessments to be paid by electronic funds transfer. Imposes a 10% penalty on untimely or unpaid amounts and for failure to pay by electronic funds transfer, unless reasonable cause is shown. Penalties are deposited in the Workers' Compensation Administration Revolving Fund.
Requires the California Workforce Development Board to submit reports to the Legislature evaluating grant programs (Road Maintenance and Rehabilitation Account, Breaking Barriers to Employment Initiative, Prison to Employment) by October 1 of every odd-numbered year. Establishes additional reporting if new grant funds are appropriated for those programs.
Defines 'labor disabling' for Subsequent Injuries Benefits Trust Fund purposes as an impairment that resulted in loss of earnings, interfered with work activity in the employee's occupation, or otherwise had a demonstrable impact on ability to perform work. Excludes conditions treatable by medication or medical device where the employee worked without incapacity.
Changes SIBTF eligibility: an employee now qualifies if the combined disability is 70% or more of total AND either (1) the preexisting disability affected a hand, arm, foot, leg, or eye and the subsequent injury affects the opposite corresponding member with a whole person impairment of 5% or more, or (2) the subsequent injury alone produces a whole person impairment of 35% or more. Previously the threshold was 35% for the subsequent injury alone.
Exempts SIBTF claims with a certain procedural status on or before June 1, 2026, or filed on or before July 1, 2020, from the new eligibility and calculation changes. Requires that preexisting disability be determined by substantial evidence based on prior medical records, testimony, and other evidence in existence before the subsequent injury.
Extends indefinitely the Workers' Compensation Appeals Board provision that a petition for reconsideration is deemed denied if not acted upon within 60 days, and repeals the version effective July 1, 2026. SIBTF provisions are made inoperative on July 1, 2031 and repealed as of January 1, 2032.
The bill's scope expanded from a single-section expression of legislative intent to a multi-code amendment covering the Government Code, Labor Code, Streets and Highways Code, and Unemployment Insurance Code, with appropriations and immediate effectiveness as a budget-related bill.