Article 3. Disability Payments of California Labor Code >> Division 4. >> Part 2. >> Chapter 2. >> Article 3.
(a) If an injury causes temporary disability, the first
payment of temporary disability indemnity shall be made not later
than 14 days after knowledge of the injury and disability, on which
date all indemnity then due shall be paid, unless liability for the
injury is earlier denied.
(b) (1) If the injury causes permanent disability, the first
payment shall be made within 14 days after the date of last payment
of temporary disability indemnity, except as provided in paragraph
(2). When the last payment of temporary disability indemnity has been
made pursuant to subdivision (c) of Section 4656, and regardless of
whether the extent of permanent disability can be determined at that
date, the employer nevertheless shall commence the timely payment
required by this subdivision and shall continue to make these
payments until the employer's reasonable estimate of permanent
disability indemnity due has been paid, and if the amount of
permanent disability indemnity due has been determined, until that
amount has been paid.
(2) Prior to an award of permanent disability indemnity, a
permanent disability indemnity payment shall not be required if the
employer has offered the employee a position that pays at least 85
percent of the wages and compensation paid to the employee at the
time of injury or if the employee is employed in a position that pays
at least 100 percent of the wages and compensation paid to the
employee at the time of injury, provided that when an award of
permanent disability indemnity is made, the amount then due shall be
calculated from the last date for which temporary disability
indemnity was paid, or the date the employee's disability became
permanent and stationary, whichever is earlier.
(c) Payment of temporary or permanent disability indemnity
subsequent to the first payment shall be made as due every two weeks
on the day designated with the first payment.
(d) If any indemnity payment is not made timely as required by
this section, the amount of the late payment shall be increased 10
percent and shall be paid, without application, to the employee,
unless the employer continues the employee's wages under a salary
continuation plan, as defined in subdivision (g). No increase shall
apply to any payment due prior to or within 14 days after the date
the claim form was submitted to the employer under Section 5401. No
increase shall apply when, within the 14-day period specified under
subdivision (a), the employer is unable to determine whether
temporary disability indemnity payments are owed and advises the
employee, in the manner prescribed in rules and regulations adopted
pursuant to Section 138.4, why payments cannot be made within the
14-day period, what additional information is required to make the
decision whether temporary disability indemnity payments are owed,
and when the employer expects to have the information required to
make the decision.
(e) If the employer is insured for its obligation to provide
compensation, the employer shall be obligated to reimburse the
insurer for the amount of increase in indemnity payments, made
pursuant to subdivision (d), if the late payment which gives rise to
the increase in indemnity payments, is due less than seven days after
the insurer receives the completed claim form from the employer.
Except as specified in this subdivision, an employer shall not be
obligated to reimburse an insurer nor shall an insurer be permitted
to seek reimbursement, directly or indirectly, for the amount of
increase in indemnity payments specified in this section.
(f) If an employer is obligated under subdivision (e) to reimburse
the insurer for the amount of increase in indemnity payments, the
insurer shall notify the employer in writing, within 30 days of the
payment, that the employer is obligated to reimburse the insurer and
shall bill and collect the amount of the payment no later than at
final audit. However, the insurer shall not be obligated to collect,
and the employer shall not be obligated to reimburse, amounts paid
pursuant to subdivision (d) unless the aggregate total paid in a
policy year exceeds one hundred dollars ($100). The employer shall
have 60 days, following notice of the obligation to reimburse, to
appeal the decision of the insurer to the Department of Insurance.
The notice of the obligation to reimburse shall specify that the
employer has the right to appeal the decision of the insurer as
provided in this subdivision.
(g) For purposes of this section, "salary continuation plan" means
a plan that meets both of the following requirements:
(1) The plan is paid for by the employer pursuant to statute,
collective bargaining agreement, memorandum of understanding, or
established employer policy.
(2) The plan provides the employee on his or her regular payday
with salary not less than the employee is entitled to receive
pursuant to statute, collective bargaining agreement, memorandum of
understanding, or established employer policy and not less than the
employee would otherwise receive in indemnity payments.
Notwithstanding Section 4650, in the case of state civil
service employees, employees of the Regents of the University of
California, and employees of the Board of Trustees of the California
State University, the disability payment shall be made from the first
day the injured employee leaves work as a result of the injury, if
the injury is the result of a criminal act of violence against the
employee.
(a) No disability indemnity payment shall be made by any
written instrument unless it is immediately negotiable and payable in
cash, on demand, without discount at some established place of
business in the state.
Nothing in this section shall prohibit an employer from depositing
the disability indemnity payment in an account in any bank, savings
and loan association or credit union of the employee's choice in this
state, provided the employee has voluntarily authorized the deposit,
nor shall it prohibit an employer from electronically depositing the
disability indemnity payment in an account in any bank, savings and
loan association, or credit union, that the employee has previously
authorized to receive electronic deposits of payroll, unless the
employee has requested, in writing, that disability indemnity
benefits not be electronically deposited in the account.
(b) It is not a violation of this section if a delay in the
negotiation of a written instrument is caused solely by the
application of state or federal banking laws or regulations.
(c) On or before July 1, 2004, the administrative director shall
present to the Governor recommendations on how to provide better
access to funds paid to injured workers in light of the requirements
of federal and state laws and regulations governing the negotiability
of disability indemnity payments. The administrative director shall
make specific recommendations regarding payments to migratory and
seasonal farmworkers. The Commission on Health and Safety and Workers'
Compensation and the Employment Development Department shall assist
the administrative director in the completion of this report.
Where a petition is filed with the appeals board concerning
a continuing award of such appeals board, in which it is alleged
that the disability has decreased or terminated, there shall be a
rebuttable presumption that such temporary disability continues for
at least one week following the filing of such petition. In such
case, payment for such week shall be made in accordance with the
provisions of Sections 4650 and 4651 of this code.
Where the employee has returned to work at or prior to the date of
such filing, however, no such presumption shall apply.
Service of a copy of such petition on the employee shall be made
as provided by Section 5316 of this code.
No petitions filed under Section 4651.1 shall be granted
while the injured workman is pursuing a rehabilitation plan under
Section 139.5 of this code.
Where a petition is filed with the appeals board pursuant
to the provisions of Section 4651.1, and is subsequently denied
wholly by the appeals board, the board may determine the amount of
attorney's fees reasonably incurred by the applicant in resisting the
petition and may assess such reasonable attorney's fees as a cost
upon the party filing the petition to decrease or terminate the award
of the appeals board.
Except as otherwise provided by Section 4650.5, no temporary
disability indemnity is recoverable for the disability suffered
during the first three days after the employee leaves work as a
result of the injury unless temporary disability continues for more
than 14 days or the employee is hospitalized as an inpatient for
treatment required by the injury, in either of which cases temporary
disability indemnity shall be payable from the date of disability.
For purposes of calculating the waiting period, the day of the injury
shall be included unless the employee was paid full wages for that
day.
If the injury causes temporary total disability, the
disability payment is two-thirds of the average weekly earnings
during the period of such disability, consideration being given to
the ability of the injured employee to compete in an open labor
market.
If the injury causes temporary partial disability, the
disability payment is two-thirds of the weekly loss in wages during
the period of such disability. However, such disability payment shall
be reduced by the sum of unemployment compensation benefits and
extended duration benefits received by the employee during the period
of temporary partial disability.
If the injury causes temporary disability which is at times
total and at times partial, the weekly disability payment during the
period of each total or partial disability is in accordance with
sections 4653 and 4654 respectively.
(a) Aggregate disability payments for a single injury
occurring prior to January 1, 1979, causing temporary disability
shall not extend for more than 240 compensable weeks within a period
of five years from the date of the injury.
(b) Aggregate disability payments for a single injury occurring on
or after January 1, 1979, and prior to April 19, 2004, causing
temporary partial disability shall not extend for more than 240
compensable weeks within a period of five years from the date of the
injury.
(c) (1) Aggregate disability payments for a single injury
occurring on or after April 19, 2004, causing temporary disability
shall not extend for more than 104 compensable weeks within a period
of two years from the date of commencement of temporary disability
payment.
(2) Aggregate disability payments for a single injury occurring on
or after January 1, 2008, causing temporary disability shall not
extend for more than 104 compensable weeks within a period of five
years from the date of injury.
(3) Notwithstanding paragraphs (1) and (2), for an employee who
suffers from the following injuries or conditions, aggregate
disability payments for a single injury occurring on or after April
19, 2004, causing temporary disability shall not extend for more than
240 compensable weeks within a period of five years from the date of
the injury:
(A) Acute and chronic hepatitis B.
(B) Acute and chronic hepatitis C.
(C) Amputations.
(D) Severe burns.
(E) Human immunodeficiency virus (HIV).
(F) High-velocity eye injuries.
(G) Chemical burns to the eyes.
(H) Pulmonary fibrosis.
(I) Chronic lung disease.
In case of temporary partial disability the weekly loss in
wages shall consist of the difference between the average weekly
earnings of the injured employee and the weekly amount which the
injured employee will probably be able to earn during the disability,
to be determined in view of the nature and extent of the injury. In
computing such probable earnings, due regard shall be given to the
ability of the injured employee to compete in an open labor market.
If evidence of exact loss of earnings is lacking, such weekly loss in
wages may be computed from the proportionate loss of physical
ability or earning power caused by the injury.
(a) For injuries occurring prior to January 1, 1992, if the
injury causes permanent disability, the percentage of disability to
total disability shall be determined, and the disability payment
computed and allowed, according to paragraph (1). However, in no
event shall the disability payment allowed be less than the
disability payment computed according to paragraph (2).
(1)
Column 2--Number of
weeks
for which two-thirds
of
average weekly
earnings
Column 1- allowed for each 1
-Range percent
of percentage of permanent
disability
of
permanent within percentage
disability incurred: range:
Under 10................ 3
10-19.75................ 4
20-29.75................ 5
30-49.75................ 6
50-69.75................ 7
70-99.75................ 8
The number of weeks for which payments shall be allowed set forth
in column 2 above based upon the percentage of permanent disability
set forth in column 1 above shall be cumulative, and the number of
benefit weeks shall increase with the severity of the disability. The
following schedule is illustrative of the computation of the number
of benefit weeks:
Column 1-
- Column 2-
Percentage -
of Cumulative
permanent number
disability of
incurred: benefit weeks:
5..................... 15.00
10.................... 30.25
15.................... 50.25
20.................... 70.50
25.................... 95.50
30.................... 120.75
35.................... 150.75
40.................... 180.75
45.................... 210.75
50.................... 241.00
55.................... 276.00
60.................... 311.00
65.................... 346.00
70.................... 381.25
75.................... 421.25
80.................... 461.25
85.................... 501.25
90.................... 541.25
95.................... 581.25
100................... for life
(2) Two-thirds of the average weekly earnings for four weeks for
each 1 percent of disability, where, for the purposes of this
subdivision, the average weekly earnings shall be taken at not more
than seventy-eight dollars and seventy-five cents ($78.75).
(b) This subdivision shall apply to injuries occurring on or after
January 1, 1992. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed, according to paragraph
(1). However, in no event shall the disability payment allowed be
less than the disability payment computed according to paragraph (2).
(1)
Column 2--Number of
weeks
for which two-thirds
of
average weekly
earnings
Column 1- allowed for each 1
-Range percent
of percentage of permanent
disability
of
permanent within percentage
disability incurred: range:
Under 10................ 3
10-19.75................ 4
20-24.75................ 5
25-29.75................ 6
30-49.75................ 7
50-69.75................ 8
70-99.75................ 9
The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
(2) Two-thirds of the average weekly earnings for four weeks for
each 1 percent of disability, where, for the purposes of this
subdivision, the average weekly earnings shall be taken at not more
than seventy-eight dollars and seventy-five cents ($78.75).
(c) This subdivision shall apply to injuries occurring on or after
January 1, 2004. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed as follows:
Column 2--Number of
weeks
for which two-thirds
of
average weekly
earnings
Column 1- allowed for each 1
-Range percent
of percentage of permanent
disability
of
permanent within percentage
disability incurred: range:
Under 10................ 4
10-19.75................ 5
20-24.75................ 5
25-29.75................ 6
30-49.75................ 7
50-69.75................ 8
70-99.75................ 9
The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
(d) (1) This subdivision shall apply to injuries occurring on or
after January 1, 2005, and as additionally provided in paragraph (4).
If the injury causes permanent disability, the percentage of
disability to total disability shall be determined, and the basic
disability payment computed as follows:
Column 2--Number of
weeks
for which two-thirds
of
average weekly
earnings
Column 1- allowed for each 1
-Range percent
of percentage of permanent
disability
of
permanent within percentage
disability incurred: range:
0.25-9.75............... 3
10-14.75................ 4
15-24.75................ 5
25-29.75................ 6
30-49.75................ 7
50-69.75................ 8
70-99.75................ 16
The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
(2) If, within 60 days of a disability becoming permanent and
stationary, an employer does not offer the injured employee regular
work, modified work, or alternative work, in the form and manner
prescribed by the administrative director, for a period of at least
12 months, each disability payment remaining to be paid to the
injured employee from the date of the end of the 60-day period shall
be paid in accordance with paragraph (1) and increased by 15 percent.
This paragraph shall not apply to an employer that employs fewer
than 50 employees.
(3) (A) If, within 60 days of a disability becoming permanent and
stationary, an employer offers the injured employee regular work,
modified work, or alternative work, in the form and manner prescribed
by the administrative director, for a period of at least 12 months,
and regardless of whether the injured employee accepts or rejects the
offer, each disability payment remaining to be paid to the injured
employee from the date the offer was made shall be paid in accordance
with paragraph (1) and decreased by 15 percent.
(B) If the regular work, modified work, or alternative work is
terminated by the employer before the end of the period for which
disability payments are due the injured employee, the amount of each
of the remaining disability payments shall be paid in accordance with
paragraph (1) and increased by 15 percent. An employee who
voluntarily terminates employment shall not be eligible for payment
under this subparagraph. This paragraph shall not apply to an
employer that employs fewer than 50 employees.
(4) For compensable claims arising before April 30, 2004, the
schedule provided in this subdivision shall not apply to the
determination of permanent disabilities when there has been either a
comprehensive medical-legal report or a report by a treating
physician, indicating the existence of permanent disability, or when
the employer is required to provide the notice required by Section
4061 to the injured worker.
(e) This subdivision shall apply to injuries occurring on or after
January 1, 2013. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed as follows:
Column 2--Number of
weeks for which two-
thirds of average
weekly earnings
Column 1- allowed for each 1
-Range percent
of percentage of permanent
disability
of
permanent within percentage
disability incurred: range:
0.25-9.75............... 3
10-14.75................ 4
15-24.75................ 5
25-29.75................ 6
30-49.75................ 7
50-69.75................ 8
70-99.75................ 16
(1) The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
(2) If the permanent disability directly caused by the industrial
injury is total, payment shall be made as provided in Section 4659.
As used in this article, the following definitions apply:
(a) "Regular work" means the employee's usual occupation or the
position in which the employee was engaged at the time of injury and
that offers wages and compensation equivalent to those paid to the
employee at the time of injury, and located within a reasonable
commuting distance of the employee's residence at the time of injury.
(b) "Modified work" means regular work modified so that the
employee has the ability to perform all the functions of the job and
that offers wages and compensation that are at least 85 percent of
those paid to the employee at the time of injury, and located within
a reasonable commuting distance of the employee's residence at the
time of injury.
(c) "Alternative work" means work that the employee has the
ability to perform, that offers wages and compensation that are at
least 85 percent of those paid to the employee at the time of injury,
and that is located within reasonable commuting distance of the
employee's residence at the time of injury.
(d) For the purpose of determining whether wages and compensation
are equivalent to those paid at the time of injury, the wages and
compensation for any increase in working hours over the average hours
worked at the time of injury shall not be considered.
(e) For the purpose of determining whether wages and compensation
are equivalent to those paid at the time of injury, actual wages and
compensation shall be determined without regard to the minimums and
maximums set forth in Chapter 1 (commencing with Section 4451).
(f) The condition that regular work, modified work, or alternative
work be located within a reasonable distance of the employee's
residence at the time of injury may be waived by the employee. The
condition shall be deemed to be waived if the employee accepts the
regular work, modified work, or alternative work and does not object
to the location within 20 days of being informed of the right to
object. The condition shall be conclusively deemed to be satisfied if
the offered work is at the same location and the same shift as the
employment at the time of injury.
(a) This section shall apply to injuries occurring on or
after January 1, 2004, and before January 1, 2013.
(b) Except as provided in Section 4658.6, if the injury causes
permanent partial disability and the injured employee does not return
to work for the employer within 60 days of the termination of
temporary disability, the injured employee shall be eligible for a
supplemental job displacement benefit in the form of a
nontransferable voucher for education-related retraining or skill
enhancement, or both, at state-approved or accredited schools, as
follows:
(1) Up to four thousand dollars ($4,000) for permanent partial
disability awards of less than 15 percent.
(2) Up to six thousand dollars ($6,000) for permanent partial
disability awards between 15 and 25 percent.
(3) Up to eight thousand dollars ($8,000) for permanent partial
disability awards between 26 and 49 percent.
(4) Up to ten thousand dollars ($10,000) for permanent partial
disability awards between 50 and 99 percent.
(c) The voucher may be used for payment of tuition, fees, books,
and other expenses required by the school for retraining or skill
enhancement. No more than 10 percent of the voucher moneys may be
used for vocational or return-to-work counseling. The administrative
director shall adopt regulations governing the form of payment,
direct reimbursement to the injured employee upon presentation to the
employer of appropriate documentation and receipts, and other
matters necessary to the proper administration of the supplemental
job displacement benefit.
(d) A voucher issued on or after January 1, 2013, shall expire two
years after the date the voucher is furnished to the employee or
five years after the date of injury, whichever is later. The employee
shall not be entitled to payment or reimbursement of any expenses
that have not been incurred and submitted with appropriate
documentation to the employer prior to the expiration date.
(e) An employer shall not be liable for compensation for injuries
incurred by the employee while utilizing the voucher.
The employer shall not be liable for the supplemental job
displacement benefit pursuant to Section 4658.5 if the employer meets
either of the following conditions:
(a) Within 30 days of the termination of temporary disability
indemnity payments, the employer offers, and the employee rejects, or
fails to accept, in the form and manner prescribed by the
administrative director, modified work, accommodating the employee's
work restrictions, lasting at least 12 months.
(b) Within 30 days of the termination of temporary disability
indemnity payments, the employer offers, and the employee rejects, or
fails to accept, in the form and manner prescribed by the
administrative director, alternative work meeting all of the
following conditions:
(1) The employee has the ability to perform the essential
functions of the job provided.
(2) The job provided is in a regular position lasting at least 12
months.
(3) The job provided offers wages and compensation that are within
15 percent of those paid to the employee at the time of injury.
(4) The job is located within reasonable commuting distance of the
employee's residence at the time of injury.
(a) This section shall apply to injuries occurring on or
after January 1, 2013.
(b) If the injury causes permanent partial disability, the injured
employee shall be entitled to a supplemental job displacement
benefit as provided in this section unless the employer makes an
offer of regular, modified, or alternative work, as defined in
Section 4658.1, that meets both of the following criteria:
(1) The offer is made no later than 60 days after receipt by the
claims administrator of the first report received from either the
primary treating physician, an agreed medical evaluator, or a
qualified medical evaluator, in the form created by the
administrative director pursuant to subdivision (h), finding that the
disability from all conditions for which compensation is claimed has
become permanent and stationary and that the injury has caused
permanent partial disability.
(A) If the employer or claims administrator has provided the
physician with a job description of the employee's regular work,
proposed modified work, or proposed alternative work, the physician
shall evaluate and describe in the form whether the work capacities
and activity restrictions are compatible with the physical
requirements set forth in that job description.
(B) The claims administrator shall forward the form to the
employer for the purpose of fully informing the employer of work
capacities and activity restrictions resulting from the injury that
are relevant to potential regular, modified, or alternative work.
(2) The offer is for regular work, modified work, or alternative
work lasting at least 12 months.
(c) The supplemental job displacement benefit shall be offered to
the employee within 20 days after the expiration of the time for
making an offer of regular, modified, or alternative work pursuant to
paragraph (1) of subdivision (b).
(d) The supplemental job displacement benefit shall be in the form
of a voucher redeemable as provided in this section up to an
aggregate of six thousand dollars ($6,000).
(e) The voucher may be applied to any of the following expenses at
the choice of the injured employee:
(1) Payment for education-related retraining or skill enhancement,
or both, at a California public school or with a provider that is
certified and on the state's Eligible Training Provider List (EPTL),
as authorized by the federal Workforce Investment Act (P.L. 105-220),
including payment of tuition, fees, books, and other expenses
required by the school for retraining or skill enhancement.
(2) Payment for occupational licensing or professional
certification fees, related examination fees, and examination
preparation course fees.
(3) Payment for the services of licensed placement agencies,
vocational or return-to-work counseling, and résumé preparation, all
up to a combined limit of 10 percent of the amount of the voucher.
(4) Purchase of tools required by a training or educational
program in which the employee is enrolled.
(5) Purchase of computer equipment, up to one thousand dollars
($1,000).
(6) Up to five hundred dollars ($500) as a miscellaneous expense
reimbursement or advance, payable upon request and without need for
itemized documentation or accounting. The employee shall not be
entitled to any other voucher payment for transportation, travel
expenses, telephone or Internet access, clothing or uniforms, or
incidental expenses.
(f) The voucher shall expire two years after the date the voucher
is furnished to the employee, or five years after the date of injury,
whichever is later. The employee shall not be entitled to payment or
reimbursement of any expenses that have not been incurred and
submitted with appropriate documentation to the employer prior to the
expiration date.
(g) Settlement or commutation of a claim for the supplemental job
displacement benefit shall not be permitted under Chapter 2
(commencing with Section 5000) or Chapter 3 (commencing with Section
5100) of Part 3.
(h) The administrative director shall adopt regulations for the
administration of this section, including, but not limited to, both
of the following:
(1) The time, manner, and content of notices of rights under this
section.
(2) The form of a mandatory attachment to a medical report to be
forwarded to the employer pursuant to paragraph (1) of subdivision
(b) for the purpose of fully informing the employer of work
capacities and of activity restrictions resulting from the injury
that are relevant to potential regular work, modified work, or
alternative work.
(i) An employer shall not be liable for compensation for injuries
incurred by the employee while utilizing the voucher.
(a) If the permanent disability is at least 70 percent, but
less than 100 percent, 1.5 percent of the average weekly earnings for
each 1 percent of disability in excess of 60 percent is to be paid
during the remainder of life, after payment for the maximum number of
weeks specified in Section 4658 has been made. For the purposes of
this subdivision only, average weekly earnings shall be taken at not
more than one hundred seven dollars and sixty-nine cents ($107.69).
For injuries occurring on or after July 1, 1994, average weekly wages
shall not be taken at more than one hundred fifty-seven dollars and
sixty-nine cents ($157.69). For injuries occurring on or after July
1, 1995, average weekly wages shall not be taken at more than two
hundred seven dollars and sixty-nine cents ($207.69). For injuries
occurring on or after July 1, 1996, average weekly wages shall not be
taken at more than two hundred fifty-seven dollars and sixty-nine
cents ($257.69). For injuries occurring on or after January 1, 2006,
average weekly wages shall not be taken at more than five hundred
fifteen dollars and thirty-eight cents ($515.38).
(b) If the permanent disability is total, the indemnity based upon
the average weekly earnings determined under Section 4453 shall be
paid during the remainder of life.
(c) For injuries occurring on or after January 1, 2003, an
employee who becomes entitled to receive a life pension or total
permanent disability indemnity as set forth in subdivisions (a) and
(b) shall have that payment increased annually commencing on January
1, 2004, and each January 1 thereafter, by an amount equal to the
percentage increase in the "state average weekly wage" as compared to
the prior year. For purposes of this subdivision, "state average
weekly wage" means the average weekly wage paid by employers to
employees covered by unemployment insurance as reported by the United
States Department of Labor for California for the 12 months ending
March 31 of the calendar year preceding the year in which the injury
occurred.
This section shall only apply to injuries occurring before
January 1, 2013.
(a) In determining the percentages of permanent disability,
account shall be taken of the nature of the physical injury or
disfigurement, the occupation of the injured employee, and his or her
age at the time of the injury, consideration being given to an
employee's diminished future earning capacity.
(b) (1) For purposes of this section, the "nature of the physical
injury or disfigurement" shall incorporate the descriptions and
measurements of physical impairments and the corresponding
percentages of impairments published in the American Medical
Association (AMA) Guides to the Evaluation of Permanent Impairment
(5th Edition).
(2) For purposes of this section, an employee's diminished future
earning capacity shall be a numeric formula based on empirical data
and findings that aggregate the average percentage of long-term loss
of income resulting from each type of injury for similarly situated
employees. The administrative director shall formulate the adjusted
rating schedule based on empirical data and findings from the
Evaluation of California's Permanent Disability Rating Schedule,
Interim Report (December 2003), prepared by the RAND Institute for
Civil Justice, and upon data from additional empirical studies.
(c) The administrative director shall amend the schedule for the
determination of the percentage of permanent disability in accordance
with this section at least once every five years. This schedule
shall be available for public inspection and, without formal
introduction in evidence, shall be prima facie evidence of the
percentage of permanent disability to be attributed to each injury
covered by the schedule.
(d) The schedule shall promote consistency, uniformity, and
objectivity. The schedule and any amendment thereto or revision
thereof shall apply prospectively and shall apply to and govern only
those permanent disabilities that result from compensable injuries
received or occurring on and after the effective date of the adoption
of the schedule, amendment or revision, as the fact may be. For
compensable claims arising before January 1, 2005, the schedule as
revised pursuant to changes made in legislation enacted during the
2003-04 Regular and Extraordinary Sessions shall apply to the
determination of permanent disabilities when there has been either no
comprehensive medical-legal report or no report by a treating
physician indicating the existence of permanent disability, or when
the employer is not required to provide the notice required by
Section 4061 to the injured worker.
(e) On or before January 1, 2005, the administrative director
shall adopt regulations to implement the changes made to this section
by the act that added this subdivision.
This section shall apply to injuries occurring on or after
January 1, 2013.
(a) In determining the percentages of permanent partial or
permanent total disability, account shall be taken of the nature of
the physical injury or disfigurement, the occupation of the injured
employee, and his or her age at the time of injury.
(b) For purposes of this section, the "nature of the physical
injury or disfigurement" shall incorporate the descriptions and
measurements of physical impairments and the corresponding
percentages of impairments published in the American Medical
Association (AMA) Guides to the Evaluation of Permanent Impairment
(5th Edition) with the employee's whole person impairment, as
provided in the Guides, multiplied by an adjustment factor of 1.4.
(c) (1) Except as provided in paragraph (2), there shall be no
increases in impairment ratings for sleep dysfunction, sexual
dysfunction, or psychiatric disorder, or any combination thereof,
arising out of a compensable physical injury. Nothing in this section
shall limit the ability of an injured employee to obtain treatment
for sleep dysfunction, sexual dysfunction, or psychiatric disorder,
if any, that are a consequence of an industrial injury.
(2) An increased impairment rating for psychiatric disorder shall
not be subject to paragraph (1) if the compensable psychiatric injury
resulted from either of the following:
(A) Being a victim of a violent act or direct exposure to a
significant violent act within the meaning of Section 3208.3.
(B) A catastrophic injury, including, but not limited to, loss of
a limb, paralysis, severe burn, or severe head injury.
(d) The administrative director may formulate a schedule of age
and occupational modifiers and may amend the schedule for the
determination of the age and occupational modifiers in accordance
with this section. The Schedule for Rating Permanent Disabilities
pursuant to the American Medical Association (AMA) Guides to the
Evaluation of Permanent Impairment (5th Edition) and the schedule of
age and occupational modifiers shall be available for public
inspection and, without formal introduction in evidence, shall be
prima facie evidence of the percentage of permanent disability to be
attributed to each injury covered by the schedule. Until the schedule
of age and occupational modifiers is amended, for injuries occurring
on or after January 1, 2013, permanent disabilities shall be rated
using the age and occupational modifiers in the permanent disability
rating schedule adopted as of January 1, 2005.
(e) The schedule of age and occupational modifiers shall promote
consistency, uniformity, and objectivity.
(f) The schedule of age and occupational modifiers and any
amendment thereto or revision thereof shall apply prospectively and
shall apply to and govern only those permanent disabilities that
result from compensable injuries received or occurring on and after
the effective date of the adoption of the schedule, amendment, or
revision, as the case may be.
(g) Nothing in this section shall preclude a finding of permanent
total disability in accordance with Section 4662.
(h) In enacting the act adding this section, it is not the intent
of the Legislature to overrule the holding in Milpitas Unified School
District v. Workers' Comp. Appeals Bd. (Guzman) (2010) 187
Cal.App.4th 808.
(i) The Commission on Health and Safety and Workers' Compensation
shall conduct a study to compare average loss of earnings for
employees who sustained work-related injuries with permanent
disability ratings under the schedule, and shall report the results
of the study to the appropriate policy and fiscal committees of the
Legislature no later than January 1, 2016.
Where an injury causes both temporary and permanent
disability, the injured employee is entitled to compensation for any
permanent disability sustained by him in addition to any payment
received by such injured employee for temporary disability.
Every computation made pursuant to this section shall be made only
with reference to disability resulting from an original injury
sustained after this section as amended during the 1949 Regular
Session of the Legislature becomes effective; provided, however, that
all rights presently existing under this section shall be continued
in force.
Notwithstanding any other provision of this division, when
any temporary total disability indemnity payment is made two years or
more from the date of injury, the amount of this payment shall be
computed in accordance with the temporary disability indemnity
average weekly earnings amount specified in Section 4453 in effect on
the date each temporary total disability payment is made unless
computing the payment on this basis produces a lower payment because
of a reduction in the minimum average weekly earnings applicable
under Section 4453.
(a) Any of the following permanent disabilities shall be
conclusively presumed to be total in character:
(1) Loss of both eyes or the sight thereof.
(2) Loss of both hands or the use thereof.
(3) An injury resulting in a practically total paralysis.
(4) An injury to the brain resulting in permanent mental
incapacity.
(b) In all other cases, permanent total disability shall be
determined in accordance with the fact.
(a) Apportionment of permanent disability shall be based on
causation.
(b) Any physician who prepares a report addressing the issue of
permanent disability due to a claimed industrial injury shall in that
report address the issue of causation of the permanent disability.
(c) In order for a physician's report to be considered complete on
the issue of permanent disability, the report must include an
apportionment determination. A physician shall make an apportionment
determination by finding what approximate percentage of the permanent
disability was caused by the direct result of injury arising out of
and occurring in the course of employment and what approximate
percentage of the permanent disability was caused by other factors
both before and subsequent to the industrial injury, including prior
industrial injuries. If the physician is unable to include an
apportionment determination in his or her report, the physician shall
state the specific reasons why the physician could not make a
determination of the effect of that prior condition on the permanent
disability arising from the injury. The physician shall then consult
with other physicians or refer the employee to another physician from
whom the employee is authorized to seek treatment or evaluation in
accordance with this division in order to make the final
determination.
(d) An employee who claims an industrial injury shall, upon
request, disclose all previous permanent disabilities or physical
impairments.
(e) Subdivisions (a), (b), and (c) shall not apply to injuries or
illnesses covered under Sections 3212, 3212.1, 3212.2, 3212.3,
3212.4, 3212.5, 3212.6, 3212.7, 3212.8, 3212.85, 3212.9, 3212.10,
3212.11, 3212.12, 3213, and 3213.2.
(a) The employer shall only be liable for the percentage of
permanent disability directly caused by the injury arising out of and
occurring in the course of employment.
(b) If the applicant has received a prior award of permanent
disability, it shall be conclusively presumed that the prior
permanent disability exists at the time of any subsequent industrial
injury. This presumption is a presumption affecting the burden of
proof.
(c) (1) The accumulation of all permanent disability awards issued
with respect to any one region of the body in favor of one
individual employee shall not exceed 100 percent over the employee's
lifetime unless the employee's injury or illness is conclusively
presumed to be total in character pursuant to Section 4662. As used
in this section, the regions of the body are the following:
(A) Hearing.
(B) Vision.
(C) Mental and behavioral disorders.
(D) The spine.
(E) The upper extremities, including the shoulders.
(F) The lower extremities, including the hip joints.
(G) The head, face, cardiovascular system, respiratory system, and
all other systems or regions of the body not listed in subparagraphs
(A) to (F), inclusive.
(2) Nothing in this section shall be construed to permit the
permanent disability rating for each individual injury sustained by
an employee arising from the same industrial accident, when added
together, from exceeding 100 percent.