Council File: 04-0002-S46 Subscribe via emailPrint this recordPublic Comment

Title
WORKERS' COMPENSATION REFORM PROPOSALS
Subject
Resolution - WHEREAS, any official position of the City of Los Angeles with respect to legislation, rules, regulations or policies proposed to or pending before a local, state or federal governmental body or agency must have first been adopted in the form of a Resolution by the City Council with the concurrence of the Mayor; and WHEREAS, California's workers' compensation system needs substantial reform and is negatively impacting job creation and economic growth throughout the state, while failing to provide injured employees with the benefits they deserve; and WHEREAS, the dysfunction in the workers' compensation system is evident in the fact that the state's employers pay the highest workers' compensation premiums in the nation, while their employees receive among the lowest level of benefits; and WHEREAS, the City of Los Angeles is budgeted to spend $142 million during the current fiscal year on workers' compensation and costs are projected to reach $160 million in the next fiscal year, which would be the fourth consecutive year of double-digit percentage increases; and WHEREAS, there are currently in excess of 20,000 open active workers' compensation claims against the city, with approximately 40% of them involved in litigation; and WHEREAS, despite a decrease in new workers' compensation claims by city employees, overall costs continue to escalate and the city's total workers' compensation liability now exceeds $1 billion; and WHEREAS, in 2003, the California Legislature adopted Senate Bill 228 and Assembly Bill 227 to amend certain provisions of the existing workers' compensation laws and these bills were an important first step in reforming the system; and WHEREAS, Governor Schwarzenegger and the California Legislature have been working on an additional package of workers' compensation reforms that are currently the subject of intense negotiations in Sacramento; and WHEREAS, the City of Los Angeles needs to develop a strong position during these negotiations to ensure that the issues of greatest significance to the city are addressed by any legislative proposal that is ultimately adopted. THEREFORE BE IT RESOLVED, that by adoption of this Resolution, the City of Los Angeles hereby includes in its 2003-2004 Legislative Program SUPPORT for the following workers' compensation reform proposals: * Reform the penalty system in Labor Code §5814 so that penalties are applied solely to the late payment and the amount of the penalty takes into account the actual burden incurred by the injured employee as a result of the delay. * Require physicians to provide clear and job specific, temporary work restrictions to employers to allow greater opportunities for injured employees to return to either regular or modified work. * Allow greater flexibility for partnering with existing health insurance programs to provide medical services for injured employees, streamlining the delivery of employee medical benefits. * Revise the permanent disability rating and apportionment systems to provide uniform standards for work-related disabilities that take into account an employee's ability to perform their current job, limit duplicate awards for the same injury and cap permanent disability ratings to 100%. * Provide all industries with the option to implement alternative dispute resolution programs to avoid unnecessary and costly litigation of workers' compensation claims. * Expand access to workers' compensation records under Insurance Code §1877.1(a) to City Attorney prosecutors and law enforcement personnel so that they can prosecute workers' compensation fraud more effectively. * Expand the existing grant program for workers' compensation fraud, as provided in Insurance Code § 1872.83, to allow the City Attorney to compete for grant funds to assist in workers' compensation insurance fraud prosecution. REFER TO COUNCIL FILE 04-0530 NEW COUNCIL FILE 07-1206
Date Received / Introduced
03/12/2004
Last Changed Date
04/18/2007
Mover
WENDY GREUEL
DENNIS ZINE
Second
BERNARD PARKS
File History
3-12-04 - This day's Council session
3-12-04 - Ref to Audits and Governmental Efficiency and Personnel Committees
3-12-04 - File to Audits and Governmental Efficiency Committee Clerk
3-19-04 - Council Action - Motion ADOPTED to APPROVE Personnel Committee report recommendations, and communication from Audits and Governmental Efficiency Committee, subject to the approval of the Mayor to:
ADOPT the accompanying RESOLUTION to include in the City's 2003-04 State Legislative Program SUPPORT for the following workers' compensation reform proposals:
a. Reform the penalty system in Labor Code Section 5814 so that penalties are applied solely to the late payment and the amount of the penalty takes into account the actual burden incurred by the injured employee as a result of the delay.
b. Require physicians to provide clear and job specific, temporary work restrictions to employers to allow greater opportunities for injured employees to return to either regular or modified work.
c. Allow greater flexibility for partnering with existing health insurance programs to provide medical services for injured employees, streamlining the delivery of employee medical benefits.
d. Revise the permanent disability rating and apportionment systems to provide uniform standards for work-related disabilities that take into account employees' ability to perform their current jobs, limit duplicate awards for the same injury and cap permanent disability ratings to 100 percent.
e. Provide all industries with the option to implement alternative dispute resolution programs to avoid unnecessary and costly litigation of workers' compensation claims.
f. Expand access to workers' compensation records under Insurance Code Section 1877.1(a) to City Attorney prosecutors and law enforcement personnel so that they can prosecute workers' compensation fraud more effectively.
g. Expand the existing grant program for workers' compensation fraud as provided in Insurance Code Section 1872.83, to allow the City Attorney to compete for grant funds to assist in workers' compensation insurance fraud prosecution.
3-22-04 - File to Mayor FORTHWITH
3-22-04 - For ref - Communication from Chief Legislative Analyst 04-03-0381 relative to Workers' Compensation Legislation Reform.
3-23-04 - Ref to Audits and Governmental Efficiency and Personnel Committees - to Audits and Governmental Efficiency Committee Clerk
3-25-04 - Mayor's message concurred in action of March 19, 2004
3-26-04 - File to Calendar Clerk
4-6-04 - File in files
4-16-04 - This day's Council session - Motion - Zine Mover 2004 / Parks - After months of negotiations in Sacramento, a compromise package of reforms to the workers' compensation system appears to have been agreed upon by the State legislature. The changes contained in SB 899 (Poochigian) are expected to save billions of dollars for businesses, non-profit organizations an Id governments throughout California. The City of Los Angeles was expected to spend $160 million on workers' compensation in the coming fiscal year and will now share in the financial relief provided by these~ modifications.
On March 19, 2004, the City Council adopted a resolution supporting numerous workers' compensation reform provisions that Were expected to save approximately $30 million annually (Council File 04-0002-S46). With the pending, adoption of the final reform package, a comparison of the proposed changes, versus the recommendations from the City of Los Angeles, would be useful. Additionally, an updated financial analysis of the anticipated savings from the new legislation would be beneficial in more accurately forecasting the city's workers' compensation costs for the upcoming budget process.
THEREFORE MOVE that the Personnel Department be instructed to report back to the Personnel Committee with a review of the workers' compensation reform provisions in SB 899 (Poochigian), including a comparison with the recommended proposal adopted by the Los Angeles City Council (Council File 04-0002-S46).
FURTHER MOVE that the Personnel Department be instructed to report back to the Personnel and Budget Committees with a revised financial analysis of the anticipated cost savings that will be realized with the implementation of the workers' compensation reforms contained in SB 899 (Poochigian).
4-16-04 - Ref to Personnel and Budget and Finance Committees
4-16-04 - File to Personnel Committee Clerk
6-11-04 - For ref - Communication from the Personnel Department relative to Senate Bill 899 - Workers' Compensation Legislative Reforms and the anticipated financial impact on the City's Workers' Compensation Program.
6-15-04 - Ref to Personnel and Budget and Finance Committees - to Personnel Committee Clerk
11-10-05 - For ref - Communications from the Mayor, dated November 8, 2005, and Personnel Department, dated November 2, 2005, relative to the Alternative Dispute Resolution (ADR) for workers' compensation disputes.
11-10-05 - Ref to Personnel and Budget and Finance Committees - to Personnel Committee Clerk
1-25-06 - File to Budget and Finance Committee Clerk
4-19-06 - Council Action - Budget and Finance Committee report ADOPTED to:
1. AUTHORIZE the General Manager of the Personnel Department to release a Request for Proposal for a one-year pilot ADR Program for workers' compensation disputes.
2. INSTRUCT the Personnel Department to report back to the Council with a recommendation for the selection of a contractor for the one-year pilot ADR Program prior to executing a contract which would be subject to City Attorney review as to form and legality, with the authorization amount and source of funding to be determined upon Council approval of the ADR contract and contractor.
4-28-06 - File to Budget and Finance Committee Clerk OK
5-2-06 - File in files

Online Documents (Doc)

Scroll Vote Left Council Vote Information (2 Votes) Scroll Vote Right

Meeting Date: 04/19/2006
Meeting Type: Regular
Vote Action: Adopted
Vote Given: (12 - 0 - 3)
Member Name CD Vote
TONY CARDENAS 6 YES
ERIC GARCETTI 13 YES
WENDY GREUEL 2 YES
JANICE HAHN 15 ABSENT
JOSE HUIZAR 14 YES
TOM LABONGE 4 YES
ALEX PADILLA 7 YES
BERNARD C PARKS 8 YES
JAN PERRY 9 YES
ED REYES 1 ABSENT
BILL ROSENDAHL 11 YES
GREIG SMITH 12 YES
JACK WEISS 5 ABSENT
HERB WESSON 10 YES
DENNIS ZINE 3 YES