from the California Chamber of Commerce Alert Newsletter, May 2009
The California Supreme Court has denied review of a workers’ compensation case, thereby helping to solidify the 2004 California Chamber of Commerce-supported workers’ compensation reforms. The Supreme Court’s rejection of the petition for review in effect affirms a California court of appeals ruling that upheld the Legislature’s intent of containing costs through the passage of the CalChamber-supported workers’ compensation reforms in SB 899 (Poochigian; R-Fresno, 2004).
In the case Benson v. Workers’ Comp Appeals Board, the appellate court held that if an employee suffers from a specific injury and a cumulative injury, regardless of when the injury occurred, the employee is entitled to two separate awards—one for each injury. The worker is not entitled to a combined award with a longer payout period, as this is contrary to the legislative intent, the court ruled.
The entire panel of the Workers’ Compensation Appeals Board overturned an administrative law judge’s (ALJ) holding and found that because the agreed medical examiner found that there were two different injuries and both were equally responsible for the disability, Diane Benson is entitled to receive 31 percent award for each injury in the amount of $24,605 per injury. Each award is payable at $185 per week for 133 weeks.
The ALJ combined the two injuries into a 62 percent award, for a total of $67,016.25, payable at $185 per week for 362.25 weeks.
The difference is caused by the non-linear benefit schedule, which more generously compensates more severe disabilities. Because a 62 percent award indicates a more severe injury, the award should last longer to greater compensate the injured employee.
Benson argued the ALJ was right as the decision was consistent with a 1977 California Supreme Court decision that held the same (Wilkinson v. Workers’ Comp Appeals Board). Permanente Medical Group claimed that the reforms in SB 899 dictated the board’s holding.
The court of appeal agreed with the board because under the SB 899 reforms, state employers are liable only for the percentage of permanent disability directly caused by the employment-related injury. Therefore, even though 62 percent of Benson’s permanent disability was directly caused by more than one employment-related injury, each injury directly caused only half the permanent disability.
More information at www.hrcalifornia.com.