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S 4509

Provides the carrier or employer a credit against permanent partial disability benefits for temporary partial disability payments made in excess of 130 weeks

2025 Regular Session Introduced by Jessica Ramos and 1 co-sponsor

Bill S 4509 allows employers to credit temporary disability payments over 130 weeks against permanent disability benefits, easing costs for workers' compensation claims.

REFERRED TO LABOR
0
WeVote Research Nonpartisan
Bill Summary · S 4509

Summary of Bill S 4509

Bill Overview

  • Bill Number: S 4509
  • Title: Provides the carrier or employer a credit against permanent partial disability benefits for temporary partial disability payments made in excess of 130 weeks
  • Status: Referred to Labor
  • Introduced: February 06, 2025

Purpose and Intent

Bill S 4509 aims to amend the existing workers' compensation framework by allowing employers or insurance carriers to receive a credit against permanent partial disability (PPD) benefits. This credit would apply specifically to temporary partial disability (TPD) payments that have been made for a duration exceeding 130 weeks. The intent of the bill is to alleviate the financial burden on employers and carriers by recognizing the extended payments made for temporary disabilities.

Key Provisions

  • Credit Against PPD Benefits: The bill establishes a mechanism for employers or carriers to claim a credit for TPD payments that surpass 130 weeks.
  • Duration Specification: The credit is specifically applicable to payments made beyond the 130-week threshold, which is significant in managing long-term disability cases.
  • Impact on Workers' Compensation Costs: By allowing this credit, the bill seeks to reduce the overall costs associated with workers' compensation claims for employers, potentially leading to lower insurance premiums.

Affected Parties

  • Employers and Insurance Carriers: The primary beneficiaries of this bill would be employers and insurance carriers who manage workers' compensation claims. They would gain financial relief through the credits provided.
  • Employees with Disabilities: While the bill is designed to assist employers, it may indirectly affect employees who are receiving TPD benefits, as the changes could influence the management of their claims and the duration of benefits.

Legislative Timeline

  • February 06, 2025: Bill introduced and referred to the Labor Committee.
  • May 27, 2025: The bill was reported for the first time (1st Report Cal. 1294).
  • May 28, 2025: The bill advanced to the second reading (2nd Report Cal.).
  • May 29, 2025: The bill advanced to the third reading.
  • June 11, 2025: The bill passed the Senate and was delivered to the Assembly, where it was again referred to the Labor Committee.

Related Legislation

  • S 8344: A related bill from the prior session that may address similar issues in workers' compensation.
  • A 3542: A companion bill that may provide additional context or provisions related to this legislation.

Conclusion

Bill S 4509 represents a significant shift in the approach to managing temporary and permanent disability payments within the workers' compensation system. By providing a credit for extended TPD payments, the bill aims to support employers and insurance carriers while potentially impacting the benefits received by employees. The ongoing legislative process will determine the final outcome and implications of this bill.

Compiled from official sources — confirm details with the bill’s official record.

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