Bill addresses confusing workers' comp notice requirements

By CMTA Staff

Capitol Update, April 8, 2011 Share this on FacebookTweet thisEmail this to a friend

CMTA is supporting AB 335 (Jose Solorio, D-Anaheim) to clarify benefit notices that employers are required to provide to injured workers.

The bill is in response to a study conducted by the Commission on Health and Safety and Workers' Compensation (CHSWC). Their findings concluded that the number of notices to workers' compensation recipients has increased significantly and the complex content of notices is counter-productive to assisting employees.  Additionally, the benefit notices lacked standardization and failed to convey the information needed by injured workers.

In addition to simplifying notices, AB 335 would also require the Administrative Director of the Division of Workers' Compensation (DWC) to produce an easy to understand booklet containing the entire claims process and make it available on the DWC's website.  The informational booklet's purpose is to enable injured workers and their employers to understand their rights and obligations.

AB 335 will create better outcomes for injured workers by providing them with more digestible information at key points in the claims process.  This should lead to a reduction in frictional legal expenses that result from confusion and poor communication.  Ultimately, CHSWC estimates that this legislation will provide a net savings of over $42 million per year.

AB 335 passed out of the Assembly Insurance committee with unanimous, bipartisan support. It now heads to the Assembly Appropriations Committee.

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