Workers Compensation Decisions:
Two Very Different Worlds
Stephen L. Kline, Esq.
ARMSTRONG LAW FIRM
stephenk@arm-law.com
At the end of January, I spent four days surviving the political
indoctrination barrage of the California Applicants Attorneys
Association. Their message was we’re going to strictly
interpret every aspect of SB 899 that limits any of the benefits
to workers and anything that can give us more will be wedged
and leveraged. If recent WCAB decisions are indicative of any
trend, CAAA has a key cheerleader with WCAB Commission Chair
Merle C. Rabine leading the charge with his almost single-handed
approach to limit SB 899 and its effects.
But legal protocol mandates that we look first at the California
Supreme Court’s recent unanimous decision, Honeywell
vs. WCAB (Wagner) wherethe Justices
announced that the 90-day investigation period of Labor Code §5402 is
NOT triggered when an employer knows or should have known of
an industrial claim and fails to provide a claim form. Instead,
an injured worker must file a claim form before the 90-day investigation
period begins. Only an employer’s egregious conduct of
misleading an employee or intentionally refusing to provide a
claim form will trigger the 90-day period absent the filing of
a claim form.
Labor Code §5402(b) provides that an injury is
presumed compensable if an employer fails to deny liability of
a claim within 90 days after the date the claim form is filed.
No longer are employers forced to assume liability in cases
where it is asserted there was constructive knowledge of a claim
and a failure to provide a claim form. Employers are no longer
required to complete 90-day investigations and issue denials
before a claim form is filed. Employers are still required to
(1) provide claim forms within one working day of receiving knowledge
of an injury which results in lost time beyond the work-shift
or in medical treatment beyond first aid and (2) to provide all
treatment from the filing of the claim form until the date the
claim is rejected up to a maximum of $10,000.
Through the Honeywell decision, the Supreme Court mandates
that the WCAB follow the Legislature’s clear statutory
commands instead of creating penalties which undermine legislative
intent. Labor Code §5401 and §5402 were originally
enacted as part of the Workers’ Compensation Reform Act
of 1989 which was intended to reduce costs to employers, encourage
prompt investigations of claims and increase benefits for injured
workers. Prior to the Supreme Court’s ruling in the Honeywell case,
the WCAB had penalized employers for failing to provide claim
forms instead of following the clear language of Labor Code §5401
and §5402.
In a hint of their attitude towards SB 899, the Justices discussed
the legislative history behind the 1989 Reform Act and used it
to reel in the WCAB’s abusive discretion. Similar issues
come into play with the WCAB’s recent interpretations of
SB 899.
Is anyone at the WCAB listening?
Maybe not. Compare the Supreme Court’s clear decision
with a case decided again by the WCAB en banc, Sandhagen
vs. Cox & Cox Construction, Inc. #2 written
by Chairman Rabine.
He went out of his way to state the opinions of the Board towards
Utilization Review, “A lthough we are dismissing applicant’s
petition for reconsideration and, therefore, are not formally
reaching its merits, we make the following observations regarding
his contentions (1) that the utilization review process of section
4610 is mandatory and (2) that, if a defendant does not timely
engage in utilization review, it is precluded from using a QME
or an AME under section 4062(a).”
He stated that Utilization Review is not mandatory in every
decision Mr. Rabine re-iterates his draconian, and not legislatively
supported punishment for the failure to follow the strict, almost
impossible, time limitations of Labor Code section 4610 with
his by disallowance of an untimely UR report for any purpose.
In lieu of Utilization Review, Mr. Rabine disregards the legislative
intent (there were only 6 votes out of 120 against the bill)
by going back to have the AME/QME dance party resolve medical
treatment issues. Chairman Rabine is not dancing to the new tunes
of SB 899 and the Supreme Court.
We have a lot of work ahead of us. For those of us waging the
battle in the trenches day by day, we are all too knowledgeable
about the realities of the Judges rarely giving an inch to honor
SB 899. However, don’t give up … this reform can
be upheld at the Court level. Just got word that the Second District
has held that apportionment is retroactive with the EDD v
WCAB (Kral). More on that next month.
I want to express my gratitude to my new colleague here at the
Armstrong Law Firm, Carol Finuliar who graciously contributed
to this month’s article.
Thank you for your attention and the work that you do.
---- Stephen Kline, Esq. |