Workers’ Compensation: Subsequent injuries payments.

Assembly Member Ortega's workers' compensation reform legislation revises how California calculates and administers benefits for employees who sustain multiple workplace injuries. The bill modifies permanent disability measurements for subsequent injuries, establishing distinct calculation methods based on when injuries occurred. For injuries between 2005 and 2012, disability ratings incorporate diminished future earning capacity, while those after 2013 apply a standardized 1.4 adjustment factor.

The legislation transfers payment administration from the State Compensation Insurance Fund to the Director of Industrial Relations, who will oversee the Subsequent Injuries Benefits Trust Fund. For injuries occurring after January 1, 2026, the bill requires substantial evidence that prior permanent partial disabilities impacted earnings or work capabilities before subsequent injury compensation can be awarded. To support these determinations, the Administrative Director must create and maintain a database of qualified medical evaluators specifically trained in assessing subsequent injury claims.

The measure establishes a $50,000 revolving fund for the Director to manage compensation payments and adjusting services. State representation in related proceedings will be provided by either the Attorney General or Department of Industrial Relations attorneys, with expenses reimbursed through the Workers' Compensation Administration Revolving Fund. The Appeals Board retains authority to determine compensation amounts, which the Director must then disburse from the trust fund.