Features

Senate passes bill raising payments for thousands of injured workers

By Jim Wasserman The Associated Press
Tuesday February 05, 2002

SACRAMENTO — Agreeing that California’s benefits for injured workers are woefully inadequate, the Senate voted Monday to raise those weekly payments by more than $300 over four years. 

Senators approved the bill 23-14 with most Democrats supporting the measure and Republicans opposing it. 

The Assembly was expected to quickly approve the bill later Monday and send it to Gov. Gray Davis, who has indicated he will sign the measure after vetoing three previous benefit increases in the last three years. 

The bill’s supporters said the state’s current benefits are a “disgrace,” “shameful,” “grossly low,” and “among the worst in America.” 

“If somebody wants to lose a finger or an eye, move to Pennsylvania,” said Senate President Pro Tem John Burton, D-San Francisco. “You’re better off there.” 

The bill would raise California from 49th to about 40th in the country in terms of the level of benefits, supporters said. 

The bill’s legislative backers put the proposal on a fast track after Davis reached agreement last week on a new bill with Democratic lawmakers, labor leaders and attorneys who represent injured workers. 

Opponents said the stepped up process allowed them little input or debate. “Quite frankly, while this house has the ability on 21 votes to jam something through this way, to do it this way is inappropriate,” said Sen. Ray Haynes, R-Riverside.” 

The legislation, by Assemblyman Thomas Calderon, D-Montebello, would pump an extra $2.5 billion into the statewide compensation system, raising maximum benefits for injured workers from today’s $490 a week to $602 next year and $840 in 2006. After 2006, automatic hikes would follow the state’s average wage increases. 

The bill would also double death benefits to a maxim of $320,000. 

The increases would begin Jan. 1, 2003 for job-related injuries suffered on or after date and would be the first increases since 1996. 

Supporters say the benefit increases during the next four years would cost California employers an extra $1 billion, or about one penny per hour per worker. 

They say the bill includes $1.5 billion in systemwide cost savings and reforms that would cover the rest of the increase in benefits. 

But insurers and employers expressed fears those savings would fall far short and that the bill would cost them twice the $1 billion estimated by supporters. 

Davis vetoed workers’ compensation increases in 1999, 2000 and 2001, saying they didn’t force enough cost savings in the system. 

Senate Republican Leader Jim Brulte of Rancho Cucamonga said the governor should veto this one, too. 

“This bill will ultimately cost California jobs,” he said. 

State officials estimate that about 900,000 claims are filed every year for accidents or deaths on the job. Under California’s system, employees are entitled to compensation in exchange for not suing their employers for on-the-job injuries. 

Among those urging approval of the bill Monday were Steve Duncan, 50, of Livermore, who endured 42 surgeries for burns and broken bones since a February 1999 explosion and fire at the Tosco refinery in Martinez. 

Duncan, a pipefitter who was paid $50,000 a year, now receives $490 a week in workers compensation. He called the increases “desperately needed.” 

Duncan’s wife, Gnesa said, “An injury happens to a whole family.” She said they get by because “I’m a good budgeter.” 

But the Duncans would not benefit from the bill because it is not retroactive. 

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On the Net: 

Read AB749 at www.assembly.ca.gov. 

Visit the California Department of Industrial Relations at www.dir.ca.gov. 

See the California Chamber of Commerce position at www.calchamber.