CALIFORNIA: WILL STUDY PROMPT WORKERS’ COMP OVERHAUL?

      "Californians injured at work face severe financial
 problems," according to preliminary findings from a Rand Corp.
 study of the state workers' compensation system, the Los Angeles
 Times reports.  The study, which evaluated thousands of cases
 from 1992 through 1996, found that within "the first five years
 after reporting permanently disabling injuries, workers lose an
 average 40% in wages."  However, the study found that injured
 workers are only compensated for slightly more than one-third of
 the average amount of lost wages.  According to the Los Angeles
 Times, the study is "expected to trigger calls for another
 overhaul in the way California treats people with permanently
 disabling work injuries."  The findings also provide "the first
 objective economic assessment of what social workers,
 rehabilitation specialists, lawyers and others who work with or
 represent injured California workers have reported anecdotally
 for years."
      IMPLICATIONS
      Mark Peterson, a co-author of the study, said the findings
 show that the state is "seriously undercompensating the vast
 majority of these workers."  USC law and medical school
 instructor Marvin Shapiro said "(The Rand study) says the bargain
 that was cut between employers and employees has worked fine for
 employers ... but the savings have not been passed on to the
 people that society forgets, the injured workers."  But "calls
 for more money for benefits could drive up insurance premiums for
 employers and ignite new political battles between businesses and
 advocates for injured employees," the Times reports.
 The Rand study, is scheduled for releases before a November 21
 summit of state leaders, business executives and union officials
 being held to discuss the issue (Marsh/Silverstein, 11/4).