Workers' compensation.

Section 3852(b): The Senate version prohibited employers from making claims or bringing actions against third parties for injured peace officers and firefighters. The Assembly version removes this prohibition, allowing employers to still pursue third-party claims while the employee retains the two-thirds minimum allocation.

The legislative digest removed the statement that the bill would make existing provisions 'inapplicable' to peace officers and firefighters, reflecting the more targeted approach of the Assembly version.

Section 3858(b): The Senate version contained a provision stating the employer 'shall not be relieved from the obligation to pay further compensation' for these employees. The Assembly version removes this, meaning the standard relief-from-compensation rule (up to the amount of the third-party judgment) still applies, subject to the lien/subrogation limitations.

Section 3859(b)(2): Changed from 'the employer has no right to recover compensation they have paid' to requiring that a settlement or release limit the employer's claim for reimbursement to the portion not allocated to the employee under Section 3852(b).

Section 3860(a)(2): Changed from making releases valid without notice to the employer, to requiring that any release or settlement be invalid unless it provides the employee receives not less than two-thirds of the third-party insurance limits.

Section 3860(b)(2): Changed from 'the employer has no right to reimbursement for compensation they have paid' to limiting the employer's reimbursement claim to the portion of the settlement not allocated to the employee, plus adding an explicit prohibition on credits or offsets against future workers' compensation benefits.

Section 3861(b): Changed from 'the employer has no right to recover compensation they have paid or assert a credit' to prohibiting the employer from asserting, claiming, or enforcing any credit or offset against future workers' compensation benefits (indemnity, medical, vocational rehabilitation) based on the employee's civil recovery.

Section 3862(b): Changed from 'the employer has no right to recover compensation they have paid or enforce a lien' to limiting the employer's reimbursement claim to the portion of the settlement not allocated to the employee, plus prohibiting credits or offsets against future workers' compensation benefits.

Header changed from Senate/Assembly passage dates and Governor receipt fields to 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' with Chapter 763 designation and approval date of October 13, 2025.

Page numbers changed from 94 to 93 and page headers changed from 'SB 487' to 'Ch. 763' throughout the document.

Legislative counsel's digest and all statutory section text (Sections 1-6 amending Labor Code Sections 3852, 3858, 3859, 3860, 3861, and 3862) are substantively identical; only line breaks and indentation differ.

The bill text was reformatted from a formal chaptered document with page numbers (e.g., 'Ch. 763 -2-') to a web-based display format including navigation menus, search boxes, and publication metadata. No changes to the substantive legal provisions were made.

The bill now amends six Labor Code sections (3852, 3858, 3859, 3860, 3861, and 3862) instead of just Section 3860, vastly expanding its reach across the workers' compensation subrogation framework.

A new carve-out is added throughout: if the injured employee is a peace officer (as defined in Penal Code Chapter 4.5, commencing with Section 830) or a firefighter, the employer loses all subrogation-related rights including the right to bring a claim against a third party, seek reimbursement from settlements, enforce liens, and be relieved of compensation obligations.

Section 3859 now provides that an employer's written consent is not required for a release or settlement when the employee is a peace officer or firefighter, giving these employees full autonomy to settle third-party claims without employer involvement.

The original technical changes (replacing 'he' with 'the employer' or 'the employee,' changing 'Where' to 'If,' and correcting 'attorney's fee' to 'attorney's fees') are retained in the amended version but are now secondary to the substantive policy change.

The bill now applies only to peace officers and firefighters employed by a city, county, city and county, or fire protection district. Previously it applied to all peace officers and firefighters without regard to their employer.

Section 3859(a)(2) now ties the employer consent exemption to 'a claim that is subject to subdivision (b) of Section 3852' rather than simply stating it applies when the employee is a peace officer or firefighter, ensuring consistency with the new employer-type limitation.

Section 3861(b) changes from 'If the employee is a peace officer... or a firefighter' to 'In a claim subject to subdivision (b) of Section 3852,' again incorporating the new scope limitation by reference rather than restating the occupation-based test.

The allocation rule is reframed from 'the employee shall receive not less than two-thirds of the third-party defendant's liability insurance policy limits' to 'the employer shall be entitled to receive no more than one-third.' This appears in multiple sections (3852, 3860) and changes the legal framing from a floor for employees to a ceiling for employers.

Injured peace officers and firefighters are now entitled to receive no less than two-thirds of the third-party defendant's applicable liability insurance policy limits, but only if their total damages exceed the net recovery after the employer's claim is satisfied AND the total insurance limits are insufficient to fully compensate both parties' proven damages.

The prior version completely barred employers from making claims against third parties or recovering compensation paid for injured peace officers and firefighters. The new version allows employers to recover from the portion of the settlement NOT allocated to the employee under the two-thirds minimum, effectively limiting but not eliminating employer subrogation rights.

Employers are explicitly prohibited from asserting any credit or offset against future workers' compensation benefits (temporary disability, permanent disability, medical treatment, vocational rehabilitation) based on the employee's civil recovery from a third-party tortfeasor. This prohibition is repeated across multiple sections (3852, 3858, 3860, 3861, 3862).

Settlements and releases involving injured peace officers or firefighters must provide that the employee receives no less than two-thirds of third-party insurance limits, and must limit the employer's reimbursement claim to only the portion not allocated to the employee.

The fiscal committee designation changed from 'no' to 'yes,' indicating the amendment was found to have a fiscal impact on the state or local government.

Gender-neutral pronoun changes throughout (his/her replaced with their), correction of a typo in the bill title, and reformatting of line numbers and page references.