California Supreme Court Rejects Lawsuit Protesting New Workers’ Compensation Rules
The California Supreme Court on Wednesday rejected without comment a lawsuit filed by the California Labor Federation against the Division of Workers' Compensation that challenged recently enacted workers' compensation rules to determine permanent disability awards, the Sacramento Bee reports (Sacramento Bee, 6/15).
The rules, enacted Friday following their approval by the Office of Administrative Law, require physicians to follow more stringent medical guidelines to assess a claimant's level of permanent disability. Physicians are required to use a new formula, which takes into account the loss of future earning potential, to calculate a cash payment (California Healthline, 6/13).
In the lawsuit, CLF alleged that the new formula is flawed and will result in a significant reduction in benefits (Sacramento Bee, 6/16).
Assembly Speaker Fabian Nunez (D-Los Angeles) during budget negotiations with Gov. Arnold Schwarzenegger (R) plans to propose changes to the guidelines (California Healthline, 6/13). The California Applicants' Attorneys Association also has filed a separate lawsuit against DWC. That case is pending before the state Supreme Court.
CLF lobbyist Angie Wei said that the group might appeal the court's decision (Sacramento Bee, 6/16).