Workers' Compensation & Employment Benefits

Expands unemployment insurance communications to include electronic transmissions alongside traditional mail. Defines electronic postmark date as the date when a document was electronically transmitted. Modernizes state unemployment processes to improve efficiency and accessibility.

Authorizes state officials to place liens on property transferred by uninsured employers to avoid paying workers' compensation. Establishes criteria to determine if property transfers were made to evade workers' compensation obligations. Requires notification to all parties when property is determined to be held in trust to avoid compensation payments. Protects legitimate property buyers from being affected by liens on fraudulently transferred properties.

Requires written disclosure of financial interests when submitting workers' compensation payment claims. Prohibits medical referrals to entities where the referring party has a financial stake. Imposes penalties up to $15,000 per violation and criminal misdemeanor charges for violations. Voids any compensation claims that violate the new referral and disclosure requirements.

Changes unemployment fraud prevention reporting from annual to every two years starting January 2027. Requires the Employment Development Department to continue annual fraud assessments through 2026. Mandates detailed analysis of fraud prevention tools in each report to legislative committees.

Establishes automatic workers' compensation coverage for farmworkers who suffer heat-related injuries when employers violate safety rules. Creates a new $5 million fund to support heat injury claims administration and prevention for agricultural workers. Requires employers to provide heat illness prevention plans, shade, water, and rest periods for outdoor farmworkers. Mandates that compensation include full medical treatment, disability benefits, and death benefits for heat-related incidents.

Requires standardized forms and templates for workers' compensation medical evaluations by 2027. Establishes new quality review processes for medical-legal reports in workers' compensation cases. Mandates continuous monitoring of medical evaluator performance and report accuracy. Creates a formal process to challenge inaccurate or incomplete medical evaluation reports.

Requires cannabis industry employers to provide proof of workers' compensation coverage to state regulators. Mandates that temporary staffing agencies working with cannabis businesses must also show proof of coverage. Provides administrative assistance to cannabis employers who struggle to obtain workers' compensation insurance. Exempts employers from penalties for past non-compliance if they secure proper coverage under the new law.

Authorizes biennial adjustments to workers' compensation medical-legal fee schedules based on healthcare costs. Requires fee updates to align with revisions to medical treatment and pharmacy service fee schedules. Prohibits providers from accepting compensation beyond authorized fees under threat of disciplinary action. Allows employers and employees to contest fees that exceed the established schedule.

Expands workers' compensation coverage for hospital employees to include infectious diseases and cancer. Creates automatic eligibility for healthcare workers who develop PTSD, respiratory, or musculoskeletal injuries. Extends benefits coverage for up to 10 years after employment ends for certain conditions. Establishes that injuries are presumed work-related unless employers prove otherwise.

Requires annual cost-of-living adjustments to workers' compensation benefit limits starting January 2026. Links benefit adjustments to federal Social Security cost-of-living increases based on Consumer Price Index. Updates earnings limits used to calculate temporary and permanent disability benefits.

Expands workers' compensation fraud reporting by requiring insurers to notify the Employment Development Department of premium fraud. Requires EDD to release detailed payroll records to insurers for verifying workers' compensation claims. Mandates that insurers provide requested fraud investigation information within 60 days. Establishes strict confidentiality rules for sharing workers' compensation fraud investigation data between agencies.

Extends workers' compensation heart condition coverage to State Hospital peace officers. Provides full medical, disability, and death benefits for qualifying heart conditions. Maintains coverage for up to 60 months after employment ends. Allows employers to dispute claims with contrary evidence.

Expands workers' compensation payment disputes to include contract disputes over medical fee discounts. Requires independent reviewers to provide written explanations when upholding payment reductions. Mandates employers reimburse providers for review fees if additional payments are found owing. Sets strict 30-day deadlines for requesting independent bill reviews of payment disputes.

Guarantees peace officers and firefighters at least two-thirds of third-party insurance settlements in work injury cases. Prevents employers from reducing future workers' compensation benefits based on third-party settlements. Removes the requirement for employer consent when peace officers and firefighters settle third-party claims. Limits employer reimbursement claims to the remaining one-third portion of settlements.

Expands job protection laws to cover workers laid off due to any declared state of emergency through 2027. Requires employers to offer new positions to qualified laid-off workers within 5 business days of creating the position. Mandates employers to maintain detailed layoff records for 3 years and provide written explanations for non-rehires. Imposes penalties of $600 per day per employee for violations, enforced by the Labor Commissioner.

Extends health benefits for fallen first responders' minor dependents from age 21 to 26. Applies to firefighters and peace officers killed in the line of duty. Includes retroactive coverage for deaths that occurred before September 30, 1996.

Requires annual reports evaluating the quality of state unemployment and disability insurance services. Mandates the Legislative Analyst's Office to assess service wait times and paid family leave programs. Establishes reporting requirements from 2027 through 2031.

Requires employers to provide annual written notices to workers about their labor and civil rights by 2026. Mandates employers to notify emergency contacts if workers are arrested during enforcement actions. Establishes a $500 penalty per employee for each violation of worker rights under this law. Protects workers from retaliation for exercising their rights or filing complaints about violations.

Expands workers' compensation coverage to include firefighters at commercial airports for job-related injuries. Establishes automatic injury presumptions for cancer, PTSD, and infectious diseases in firefighters and officers. Requires full medical, hospital, disability and death benefits for qualifying conditions. Extends coverage for up to 60 months after service ends based on years worked.

Expands paid disability leave benefits to peace officers in eighth-class counties. Provides up to one year of full salary during work-related injuries or illnesses. Excludes administrative staff like clerks and mechanics from disability leave benefits. Maintains separate tracking from family and medical leave for eligible officers.