The California Legislature is demanding that the administration provide an explanation as to why it has not meet a statutorily mandated deadline to produce a new permanent disability rating schedule. In a strongly worded letter addressed to administrative director of the Division of Workers’ Compensation Carrie Nevans, the legislative leadership tells her that failing to have an updated PDRS by January 1, 2010 “is a flagrant violation of the law and legislative intent.” The letter is signed by the leadership and the chairs of both the Assembly Insurance Committee and the Senate Labor and Industrial Relations Committee. The letter reads in pertinent part:

“This statute is neither vague nor unclear. It clearly requires the Division to update the Permanent Disability Rating Schedule at least once every five years. No exemptions or latitude for this requirement were provided by the Legislature,” the letter says.

The letter expresses concerns about how this delay will impact the benefits paid to injured workers and asks Nevans to provide answers including how the Division plans to “make whole” those workers who are permanently disabled.

As reported by Workers’ Comp Executive in December, DWC said that even though updating benefits was a high priority, it cited the “unprecedented economic environment” and the strain it would put on employment if the PDRS were updated now.  DWC also cited the possibility of a legislative solution in 2010. This was in reference to the negotiations last year between labor and employers at the Commission on Health and Safety and Workers’ Compensation. Those negotiations broke down amid concerns of their secretive nature.

The Division began the rule making in June 2008. Since then the process has languished, and the Legislature’s patience has grown thin.

“It’s really a question of why they’re choosing not to do it.  Everyone knows the work’s been done. It’s a question of the will to adopt the changes,” says Mark Rakich, chief consultant to the Assembly Insurance Committee.

The Assembly Insurance Committee has taken the lead on this request, but Rakich says it was not prodded by any outside interest.

To read a copy of the letter you can go the Resources section of Workers’ Comp Executive, or click here.

-30-