A Win For Workers With Disabilities In California
After a judge rule recently that California's formula for calculating permanent disability benefits was arbitrary, finding that "the administration of Gov. Arnold Schwarzenegger did not base its schedule of benefits on empirical evidence, such as lost future wages."
All of this is in the context of a growing debate about a bill that recently cleared a California Senate committee, after being vetoed by Schwarzenegger last year, would double workers compensation permanent disability benefits over three years. Democrats on the committee favored the legislation, while the Republicans voted against it. Business Insurance quotes the sponsor of the bill, Democratic Sen. Don Perata, stating, "We already have enough data showing that permanently disabled workers are not getting their fair share of workers compensation benefits.”
According to California Progress Report:
Insurer profits now exceed workers’ benefits according to a study released on April 30, 2007 by an industry rate setting organization, the Workers Compensation Insurance Rating Bureau (WCIRB). Since enactment of Schwarzenegger’s SB 899 in 2004, insurer profits have totaled $27.7 billion and benefits to workers (including medical treatment, temporary disability payments and permanent disability benefits for diminished earning capacity) have totaled $19.8 billion.
Also according to the report, "Weekly benefits for permanently disabled workers in California are now 4th lowest in the nation."
