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City of Pleasanton Legislative Platform 2016 000 LEAGUE �� U h CALI FOItN t A 1400 K Street, Suite 400•Sacramento,California 95814 \\:\\N Fax:916.658.8240 Phone: 916.658.8200 F CI T I E S www.cacities.org March 21,2016 The Honorable Richard Roth Member,California State Senate State Capitol,Room 4034 Sacramento,California 95814 RE: SB 897(Roth)—Workers'Compensation Notice of OPPOSITON Dear Senator Roth: On behalf of the League of California Cities(League),I write with regret to express our opposition to Senate Bill 897,which would provide an additional year of leave with full salary to certain peace officers who have been temporarily or permanently disabled as a result of a"catastrophic injury"suffered in the course of employment. Workers'Compensation Benefits Currently Provided An injured worker who cannot return to normal or modified work duties as the result of a workplace injury or illness is entitled to two years of temporary disability(TD)benefits under California Labor Code §4650.These benefits are intended to serve as a wage replacement benefit for injured workers who are unable to work following an injury and are paid at a rate of two-thirds of the average weekly wage over the past year;the payments are based on pre-tax wages and no federal,state or income taxes are paid on TD benefits. TD benefits are capped at 104 weeks,but it's important to note that the injured worker may collect these payments over a five-year period and the cap can be extended to 240 weeks in certain cases(severe burns, amputations,pulmonary fibrosis,etc.). Labor Code§4850 requires state and municipal governments to provide specified categories of peace officers with a more substantial wage loss benefit.Many peace officers receive up to one full year of their salary in lieu of the regular method of calculated TD benefits.These payments are also not subject to taxes and the officers continue to accrue vacation leave,sick leave and retirement benefits service credit. Following the year of fully-paid leave,this category of public employees are then allowed one additional year of wage loss benefits in the form of temporary disability payments. "Catastrophic Injury" SB 897 would entitle certain peace officers to an additional year of leave with full salary if that officer is "...disabled,whether temporarily or permanently,by a catastrophic injury arising out of and in the course of his or her duties."Currently,no definition of"catastrophic injury"exists in the California workers' compensation system.Effectively,this lack of legal clarification would expose public agencies to increased litigation in the area of workers'compensation,as it would be unclear what injuries could potentially be classified as"catastrophic"and therefore trigger expanded§4850 benefits under this bill. 261 Page