Workers’ compensation.

Senator Grayson's workers' compensation reform legislation establishes new protections for peace officers and firefighters who pursue third-party liability claims while receiving workers' compensation benefits. The bill guarantees these employees receive at least two-thirds of available insurance policy limits when their total damages exceed the net recovery after employer claims and when insurance coverage cannot fully compensate both parties.

The legislation modifies employer reimbursement rights by limiting their claims to the portion of settlements not allocated to peace officers and firefighters under the two-thirds provision. It prohibits employers from using these employees' third-party recoveries as credits or offsets against future workers' compensation benefits, including temporary disability, permanent disability, medical treatment, and vocational rehabilitation payments. The bill also removes the requirement for employer consent in settlements involving peace officers and firefighters.

For implementation, the Workers' Compensation Appeals Board retains authority to determine reasonable expenses and attorney fees in settlements requiring court approval. The amendments specify that when both employers and employees have separate legal representation, their attorneys may propose the division of expenses and fees for consideration. These changes apply specifically to peace officers as defined in the Penal Code and to firefighters, creating distinct processes for handling their third-party liability claims within the workers' compensation system.