Existing law makes a member of the Department of Justice falling within the state peace officer/firefighter class, as specified, who is disabled by injury arising out of and in the course of his or her duties, entitled to a leave of absence while so disabled without loss of salary, in lieu of disability payments, as specified, for a period not exceeding one year.

This bill would make all rank-and-file and supervisory firefighters employed by the Department of Forestry and Fire Protection, whose principal duties include active fire suppression or prevention services, entitled to that benefit.

Existing law makes a member of the Department of Justice falling within the state peace officer/firefighter class, as specified, who is disabled by injury arising out of and in the course of his or her duties, entitled to a leave of absence while so disabled without loss of salary, in lieu of disability payments, as specified, for a period of not exceeding one year.

This bill would make all rank-and-file and supervisory firefighters employed by the Department of Forestry and Fire Protection, whose principal duties include active fire suppression or prevention services, entitled to that benefit regardless of whether the firefighter is assigned by the department to a position in fire prevention, fire suppression, or other capacity. benefit.

Existing law makes a member of the Department of Justice falling within the state peace officer/firefighter class, as specified, who is disabled by injury arising out of and in the course of his or her duties, entitled to a leave of absence while so disabled without loss of salary, in lieu of disability payments, as specified, for a period of not exceeding one year.

This bill would make all rank-and-file and supervisory firefighters employed by Department of Forestry and Fire Protection entitled to that benefit regardless of whether the firefighter is assigned by the department to a position in fire prevention, fire suppression, or other capacity.

GOVERNOR'S VETO

GV Bill Id:AB 2493

Author:(Atkins)

As Enrolled Ver:August 23, 2016

2/3 vote

SUMMARY: Authorizes enhanced temporary disability benefits (commonly referred to as "4850 time") for rank and file and supervisory firefighters employed by the California Department of Forestry and Fire Protection (CalFIRE). Specifically, this bill:

1. Grants firefighter employees of CalFIRE, whether they are rank and file or supervisory employees, the right to a leave of absence for up to one year, in lieu of other disability benefits provided by the Labor Code, with full pay in the event of a disabling injury that arises out of, or occurs in the course of, employment.
2. Provides that the benefit is available to the employees who are engaged in active firefighting duties.

EXISTING LAW:

1. Provides for a comprehensive system of employer-paid benefits to be provided to employees who suffer illness or injury that arises out of, or in the course of, employment.
2. Includes temporary disability benefits (TD) for up to 104 weeks if an employee is temporarily unable to work during recuperation from the workplace illness or injury.
3. Establishes a minimum and a maximum amount that an employee may receive, which is adjusted annually to reflect rising wage levels. Currently the minimum benefit is $165 per week, and the maximum benefit is $1103. The benefit is calculated based on 2/3 of an employee's average weekly wages, subject to the maximum cap.
4. Provides specified public safety officers (most peace officer and firefighter employees of local governments and special districts) with an enhanced temporary disability benefit for up to the first year of temporary disability. These safety officers receive their full salary (tax free) during the first year of temporary disability. (Labor Code Section 4850.)
5. Provides this same enhanced disability benefit to officers of the California Highway Patrol. (Labor Code Section 4800.5.)
6. Provides this same enhanced benefit to employees of the Department of Justice who are in the "state peace officer/firefighter" classification, whose principal duties involve active law enforcement, and to harbor police employed by the San Francisco Harbor Commission. (Labor Code Section 4800.)
7. Provides this same benefit to firefighters employed by the University of California fire department, whose primary duties consist of active firefighting and prevention services, and law enforcement officers of the University of California Police Department, whose primary duties consist of active law enforcement. (Labor Code Sections 4804.1 and 4806.)
8. Provides, for employees of the California State University Police Department whose principal duties consist of active law enforcement, an enhanced industrial disability leave for up to one year in an amount equal to his or her "net take home salary," defined as the salary received after state and federal income taxes, and employee retirement contributions, have been deducted. (Labor Code Section 4816.)
9. Provides CalFIRE firefighters, as a result of collective bargaining, injured during active firefighting activities, with a TD benefit similar to that received by California State University police (essentially regular TD but without the cap).

FISCAL EFFECT: CalFIRE estimates approximately $1.2 million annually based on increased benefit payments and increased leave time and overtime costs. CalFIRE also estimates increased oversight staffing needs of between $120,000 and $350,000 annually, depending on workload.

COMMENTS:

1. Purpose. The purpose of the bill is to treat CalFIRE firefighters fairly by providing them with benefits similar to the benefits available to most other firefighters in California. According to the author, "A firefighter is a firefighter, regardless of what entity issues their badge." The risk factors faced by CalFIRE firefighters are the same as the firefighters employed by other agencies, and the benefits available to CalFIRE firefighters ought to be the same.
2. Temporary disability benefits. The goal of TD is to approximate an employee's take home pay during the period after injury when the employee is temporarily unable to work. This goal is implemented by basing the weekly TD benefit on 2/3 of the employee's average weekly wages. Because there is a cap, employees who make more than approximately $1600 per week do not reach this 2/3 goal, but because the benefit is tax free, most employees receive an adequate TD benefit while they are recovering. CalFIRE firefighters injured while actually fighting a fire receive, as a result of collective bargaining, a TD benefit that is calculated similarly to regular TD, but not subject to the cap.
3. Special public safety benefits. Most public safety officers (peace officer, sheriff, and firefighter employees generally) receive certain special workers' compensation benefits that other employees do not receive. Most notably, this class of employee has the benefit of a range of "presumptions" that certain illnesses or injuries are automatically deemed to be work related. All other employees are required to prove that their condition is work related. The second significant special workers' compensation benefit is granted by Labor Code Sections 4800 through 4850 – commonly referred to as "4850 time" – and this law grants defined employees up to one year of full salary in lieu of the regular method for calculating TD benefits.
4. Tax advantages. Because these benefits are paid due to disability, they are not subject to either state or federal taxes. This rule applies to regular TD benefits, and to 4800-4850 benefits. Because of the tax-free status of this benefit, a public safety officer takes home substantially more in weekly benefits than they normally earn while working – i.e., normal take home pay plus what would have been paid in taxes. Public employers have long complained that this creates a disincentive in getting injured public safety officers to return to work, even if they are able, due to the financial loss they would suffer when they return.
5. Collective bargaining? If a public agency wants to grant employees certain benefits of employment, it is able to accomplish that goal without need for a statutory change. In fact, the City of Los Angeles has provided "4850-like" benefits to a range of employees without need of a statute mandating the benefit for those employees. CalFIRE fighters have, in fact, already utilized collective bargaining to obtain a "better than regular TD" benefit. It may be the case that the collective bargaining process, and not legislation, is the better approach to enhancing the benefits of this class of employee.

Recent legislation. In 2013, SB 527 (Block), Chapter 66, Statutes of 2013, was signed into law. SB 527 added lifeguards employed by the City of San Diego to the list of public safety employees entitled to 4850 time. Proponents of that bill argued that the San Diego lifeguards performed duties comparable to Los Angeles County lifeguards, who already have this benefit. The City of San Diego was in support of SB 527.

Last year, AB 1451 (Chavez) of 2015 sought to provide 4850 benefits to a class of lifeguards employed by the City of Oceanside, arguing that other lifeguards employed by San Diego and Los Angeles who performed comparable duties already receive this benefit. Governor Brown vetoed AB 1451. The veto message stated:

"This bill adds full-time lifeguards employed by the City of Oceanside to the list of employees who are entitled up to one year of leave, paid at full salary without payroll tax deductions, if they suffer an illness or injury that arises out of their job duties.

"Recent data indicates public employers' costs related to this disability leave benefit have increased at an alarming rate. These cost figures give me pause to extend this benefit further in state law. If the City of Oceanside wishes to offer full salary in lieu of temporary disability for one year to their regular full-time lifeguards, they are free to do so by means of the collective bargaining process. Eligibility for this benefit is best left to the City of Oceanside, not the state, to determine."

GOVERNOR'S VETO MESSAGE:

This bill grants to the Department of Forestry and Fire Protection firefighters up to one year of "4800 time" disability leave paid at full salary and tax-free. This policy results in higher take home pay than pre-injury wages.

As stated in my veto of AB 1451 last year, costs go up significantly when this benefit is extended to new classes of employees. The state now faces over $200 billion in unfunded pension and health liabilities. Since 2011 the costs for all this has increased by nearly $5 billion per year-a 59 percent increase.

In light of these huge commitments, I am reluctant to extend this disability benefit at all-let alone through legislation outside the bargaining process.

Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0005120

 THIRD READING  

Bill No: AB 2493

Author:

:

Vote:

SENATE LABOR & IND. REL. COMMITTEE: 5-0, 6/22/16

AYES: Mendoza, Stone, Jackson, Leno, Mitchell

SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/11/16

AYES: Lara, Beall, Hill, McGuire, Mendoza

NO VOTE RECORDED: Bates, Nielsen

ASSEMBLY FLOOR: 73-0, 6/2/16 - See last page for vote

SUBJECT:

SOURCE: CAL FIRE Local 2881

California Professional Firefighters

DIGEST: This bill extends “4850 leave” to firefighters employed by the Department of Forestry and Fire Protection.

ANALYSIS:

Existing law:

1. Establishes a workers’ compensation system that provides benefits to an employee who suffers from an injury or illness that arises out of and in the course of employment, irrespective of fault. This system requires all employers to secure payment of benefits by either securing the consent of the Department of Industrial Relations to self-insure or by securing insurance against liability from an insurance company duly authorized by the state.
2. Provides for the payment of indemnity benefits if the occupational injury causes temporary or permanent disability which prevents the worker from returning to his or her job. In the case of temporary disability payments, the benefit is two-thirds of the weekly loss in wages due to disability for up to 104 weeks within five years (Labor Code §§4650, 4653, 4654 and 4656).
3. Provides that certain public employees employed on a regular, full-time basis regardless of their period of service, who incur on the job injury or illness, are entitled to receive disability payment for up to one year. These employees include:
4. City police officers;
5. City, county, or district firefighters;
6. Sheriffs;
7. County probation officers, group counselors, or juvenile services officers; and
8. State Firefighters employed by the Department of Justice.

This leave of absence is set forth in Labor Code Sections 4800 and 4850 and is sometimes referred to as “4850 leave”.

This bill extends “4850 leave” to rank-and-file and supervisorial firefighters employed by the Department of Forestry and Fire Protection (CAL FIRE), whose principal duties include active fire suppression or prevention services.

Comments

1) Need for this bill?

As was discussed above, California’s workers’ compensation system provides a temporary disability (TD) indemnity benefit for injured workers who are temporarily unable to return to work. TD benefits replace up to 66% of an injured workers’ pay for up to two years. However, for California’s peace officers, state law requires that 100% of the injured worker’s pay is provided in lieu of the first year of TD benefits. This is known as “4850 leave”, named after one of the Labor Code sections which creates the leave.

Under existing law, “4850 leave” is extended to firefighters employed by the Department of Justice, but it is not extended to firefighters employed by CAL FIRE. AB 2493 addresses this discrepancy by extending “4850 leave” to CAL FIRE firefighters.

Related/Prior Legislation

SB 527 (Block, Chapter 66, Statutes of 2013) extends “4850 leave” to lifeguards employed by the City of San Diego.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, CAL FIRE indicates that it would incur increased annual cost of $4.7 million (special fund) to implement the provisions of this bill, related to higher disability payments, overtime, and increased staffing needs.

SUPPORT: (Verified 8/11/16)

CAL FIRE Local 2881 (co-source)

California Professional Firefighters (co-source)

California Labor Federation

California State Firefighters’ Association

OPPOSITION: (Verified 8/11/16)

None received

ARGUMENTS IN SUPPORT: Proponents note that current law extends full salary leave for industrial injuries to specified peace officers and firefighters from specified state agencies. While local, county, and Department of Justice employed firefighters are covered by existing law, proponents note that CAL FIRE firefighters are not covered, despite similar job requirements. Proponents argue that this inequity is profoundly unjust in the face of the challenges and dangers facing CAL FIRE firefighters, and believe that AB 2493 is necessary to correct the injustice and extend full salary leave for industrial injuries to CAL FIRE firefighters.

ASSEMBLY FLOOR: 73-0, 6/2/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Bigelow, Brough, Beth Gaines, Gallagher, Kim, Melendez, Obernolte

Prepared by:

8/15/16 20:22:22

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 2493 (Atkins) - Firefighters: disability

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 2493 would extend “4850 leave” to firefighters employed by the Department of Forestry and Fire Protection (CalFIRE).

Fiscal Impact:

CalFIRE indicates that would incur increased annual cost of $4.7 million (special fund) to implement the provisions of the bill, related to higher disability payments, overtime, and increased staffing needs.

Background:

Current law establishes a workers’ compensation system that provides benefits to an employee who suffers from an injury or illness that arises out of and in the course of employment, irrespective of fault. Generally speaking, under current law an injured worker who is unable to work is entitled to two years of temporary disability benefits. These benefits are designed to partially offset the loss of wages for workers unable to work in the aftermath of an injury. The benefit amount is 67 percent of a worker’s average weekly wage during the past 12 months.

Labor Code Section 4850 provides specified categories of peace officers with a higher wage loss benefit. An eligible public safety officer who becomes disabled while performing his or her duties is entitled to a one-year leave of absence without loss of salary in lieu of temporary disability payments. These employees include:

• City police officers.
• City, county, or district firefighters.
• Sheriffs.
• Inspectors, investigators, detectives, or personnel with comparable titles in any district attorney's office.
• County probation officers, group counselors, or juvenile services officers.
• Lifeguards employed by a county of the first class or the City of San Diego.
• Airport law enforcement officers.
• Harbor or port police officers, wardens, or special officers of a harbor or port district or city or county harbor department.
• Police officers of the Los Angeles Unified School District.
• State firefighters employed by the Department of Justice.

Proposed Law:

The bill would extend “4850 leave” to rank-and-file and supervisorial firefighters employed by CalFIRE, whose principal duties include active fire suppression or prevention services.

Related Legislation:

SB 527 (Block), Statutes of 2013, Chapter 66, extends “4850 leave” to lifeguards employed by the City of San Diego.

Staff Comments: CalFIRE indicates that the bill could cost the department

$4.7 million annually, based on the increment between costs currently paid to firefighters under Enhanced Industrial Disability Leave (100 percent of the net salary) and the amount that would be required for those same claims under this bill (100 percent of the gross salary). This amount is approximately a 50 percent increase over existing costs.

Overtime would be necessary to help backfill the fire suppression positions that are on leave. Currently, CalFIRE is unable to determine how many employees are eligible for Enhanced Industrial Disability Leave. However, the department indicates that the approximate cost for the overtime for every 100 firefighters would cost $3.5 million to cover the increment between current Enhanced Industrial Disability Leave and the one year afforded under this bill. The overtime costs would increase to the extend that pay increases are provided.

Additionally, the department would require 1.0 Associate Governmental Program Analyst position at a cost of $136,000, annually, and 2.0 Staff Services Analyst positions at a cost of $238,000 annually, resulting from the increase in workload arising from the need to provide close management of the claims with the goal of returning injured employees to work as quickly as possible.

Finally, at the end of the one year period of the leave of absence, if an employee remains temporarily disabled, then the employee would be eligible to receive Temporary Disability payments for an additional year. The increased cost of the benefit itself is further compounded by the cost of overtime to fill behind the injured employee while the employee recovers. The magnitude of these costs is unknown.

-- END --

SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS

Senator Tony Mendoza, Chair

2015 - 2016 Regular

Bill No: AB 2493 Hearing Date: June 22, 2016

Subject: Firefighters: disability

KEY ISSUE

Should the Legislature extend “4850 leave” to firefighters employed by the Department of Forestry and Fire Protection?

ANALYSIS

Existing law:

1. Establishes a workers’ compensation system that provides benefits to an employee who suffers from an injury or illness that arises out of and in the course of employment, irrespective of fault. This system requires all employers to secure payment of benefits by either securing the consent of the Department of Industrial Relations to self-insure or by securing insurance against liability from an insurance company duly authorized by the state.
2. Provides for the payment of indemnity benefits if the occupational injury causes temporary or permanent disability which prevents the worker from returning to his or her job. In the case of temporary disability payments, the benefit is two-thirds of the weekly loss in wages due to disability for up to 104 weeks within 5 years (Labor Code §§4650, 4653, 4654 and 4656).
3. Provides that certain public employees employed on a regular, full-time basis regardless of their period of service, who incur on the job injury or illness, are entitled to receive disability payment for up to one year. These employees include:
4. City police officers;
5. City, county, or district firefighters;
6. Sheriffs;
7. County probation officers, group counselors, or juvenile services officers; and
8. State Firefighters employed by the Department of Justice.

This leave of absence is set forth in Labor Code Sections 4800 and 4850 and is sometimes referred to as “4850 leave”.

This bill extends “4850 leave” to rank-and-file and supervisorial firefighters employed by the Department of Forestry and Fire Protection (CalFIRE), whose principal duties include active fire suppression or prevention services.

COMMENTS

1. Need for this bill?

As was discussed above, California’s workers’ compensation system provides a temporary disability (TD) indemnity benefit for injured workers who are temporarily unable to return to work. TD benefits replace up to 66% of an injured workers’ pay for up to 2 years. However, for California’s peace officers, state law requires that 100% of the injured worker’s pay is provided in lieu of the first year of TD benefits. This is known as “4850 leave”, named after one of the Labor Code sections which creates the leave.

Under existing law, “4850 leave” is extended to firefighters employed by the Department of Justice, but it is not extended to firefighters employed by CalFIRE. AB 2493 would address this discrepancy by extending “4850 leave” to CalFIRE firefighters.

2. Proponent Arguments:

Proponents note that current law extends full salary leave for industrial injuries to specified peace officers and firefighters from specified state agencies. While local, county, and DOJ employed firefighters are covered by existing law, proponents note that CalFIRE firefighters are not covered, despite similar job requirements. Proponents argue that this inequity is profoundly unjust in the face of the challenges and dangers facing CalFIRE firefighters, and believe that AB 2493 is necessary to correct the injustice and extend full salary leave for industrial injuries to CalFIRE firefighters.

3. Opponent Arguments:

None on file.

4. Prior Legislation:

SB 527 (Block), Statutes of 2013, Chapter 66, extends “4850 leave” to lifeguards employed by the City of San Diego.

SUPPORT

California Professional Firefighters (Co-Sponsor)

CAL FIRE Local 2881 (Co-Sponsor)

California Labor Federation

California State Firefighters’ Association

OPPOSITION

None on file.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2493

Author:(Atkins)

As Introduced Ver:

Majority vote

SUMMARY: Authorizes enhanced temporary disability benefits (commonly referred to as "4850 time") for rank and file and supervisory firefighters employed by the California Department of Forestry and Fire Protection (CalFIRE). Specifically, this bill:

1. Grants firefighter employees of CalFIRE, whether they are rank and file or supervisory employees, the right to a leave of absence for up to one year, in lieu of other disability benefits provided by the Labor Code, with full pay in the event of a disabling injury that arises out of, or occurs in the course of, employment.
2. Provides that the benefit is available to the employees who are engaged in active firefighting duties.

EXISTING LAW:

1. Provides for a comprehensive system of employer-paid benefits to be provided to employees who suffer illness or injury that arises out of, or in the course of, employment.
2. Includes temporary disability benefits (TD) for up to 104 weeks if an employee is temporarily unable to work during recuperation from the workplace illness or injury.
3. Establishes a minimum and a maximum amount that an employee may receive, which is adjusted annually to reflect rising wage levels. Currently the minimum benefit is $165 per week, and the maximum benefit is $1103. The benefit is calculated based on 2/3 of an employee's average weekly wages, subject to the maximum cap.
4. Provides specified public safety officers (most peace officer and firefighter employees of local governments and special districts) with an enhanced temporary disability benefit for up to the first year of temporary disability. These safety officers receive their full salary (tax free) during the first year of temporary disability. (Labor Code Section 4850.)
5. Provides this same enhanced disability benefit to officers of the California Highway Patrol. (Labor Code Section 4800.5.)
6. Provides this same enhanced benefit to employees of the Department of Justice who are in the "state peace officer/firefighter" classification, whose principal duties involve active law enforcement, and to harbor police employed by the San Francisco Harbor Commission. (Labor Code Section 4800.)
7. Provides this same benefit to firefighters employed by the University of California fire department, whose primary duties consist of active firefighting and prevention services, and law enforcement officers of the University of California Police Department, whose primary duties consist of active law enforcement. (Labor Code Sections 4804.1 and 4806.)
8. Provides, for employees of the California State University Police Department whose principal duties consist of active law enforcement, an enhanced industrial disability leave for up to one year in an amount equal to his or her "net take home salary," defined as the salary received after state and federal income taxes, and employee retirement contributions, have been deducted. (Labor Code Section 4816.)
9. Provides CalFIRE firefighters, as a result of collective bargaining, injured during active firefighting activities, with a TD benefit similar to that received by California State University police (essentially regular TD but without the cap).

FISCAL EFFECT: According to the Assembly Appropriations Committee, CalFIRE estimates approximately $1.2 million annually based on increased benefit payments and increased leave time and overtime costs. CalFIRE also estimates increased oversight staffing needs of between $120,000 and $350,000 annually, depending on workload.

COMMENTS:

1. Purpose. The purpose of the bill is to treat CalFIRE firefighters fairly by providing them with benefits similar to the benefits available to most other firefighters in California. According to the author, "A firefighter is a firefighter, regardless of what entity issues their badge." The risk factors faced by CalFIRE firefighters are the same as the firefighters employed by other agencies, and the benefits available to CalFIRE firefighters ought to be the same.
2. Temporary disability benefits. The goal of TD is to approximate an employee's take home pay during the period after injury when the employee is temporarily unable to work. This goal is implemented by basing the weekly TD benefit on 2/3 of the employee's average weekly wages. Because there is a cap, employees who make more than approximately $1600 per week do not reach this 2/3 goal, but because the benefit is tax free, most employees receive an adequate TD benefit while they are recovering. CalFIRE firefighters injured while actually fighting a fire receive, as a result of collective bargaining, a TD benefit that is calculated similarly to regular TD, but not subject to the cap.
3. Special public safety benefits. Most public safety officers (peace officer, sheriff, and firefighter employees generally) receive certain special workers' compensation benefits that other employees do not receive. Most notably, this class of employee has the benefit of a range of "presumptions" that certain illnesses or injuries are automatically deemed to be work related. All other employees are required to prove that their condition is work related. The second significant special workers' compensation benefit is granted by Labor Code Sections 4800 through 4850 – commonly referred to as "4850 time" – and this law grants defined employees up to one year of full salary in lieu of the regular method for calculating TD benefits.
4. Tax advantages. Because these benefits are paid due to disability, they are not subject to either state or federal taxes. This rule applies to regular TD benefits, and to 4800-4850 benefits. Because of the tax-free status of this benefit, a public safety officer takes home substantially more in weekly benefits than they normally earn while working – i.e., normal take home pay plus what would have been paid in taxes. Public employers have long complained that this creates a disincentive in getting injured public safety officers to return to work, even if they are able, due to the financial loss they would suffer when they return.
5. Collective bargaining? If a public agency wants to grant employees certain benefits of employment, it is able to accomplish that goal without need for a statutory change. In fact, the City of Los Angeles has provided "4850-like" benefits to a range of employees without need of a statute mandating the benefit for those employees. CalFIRE fighters have, in fact, already utilized collective bargaining to obtain a "better than regular TD" benefit. It may be the case that the collective bargaining process, and not legislation, is the better approach to enhancing the benefits of this class of employee.
6. Recent legislation. In 2013, SB 527 (Block), Chapter 66, was signed into law. SB 527 added lifeguards employed by the City of San Diego to the list of public safety employees entitled to 4850 time. Proponents of that bill argued that the San Diego lifeguards performed duties comparable to Los Angeles County lifeguards, who already have this benefit. The City of San Diego was in support of SB 527.

Last year, AB 1451 (Chavez) sought to provide 4850 benefits to a class of lifeguards employed by the City of Oceanside, arguing that other lifeguards employed by San Diego and Los Angeles who performed comparable duties already receive this benefit. Governor Brown vetoed AB 1451. The veto message stated:

"This bill adds full-time lifeguards employed by the City of Oceanside to the list of employees who are entitled up to one year of leave, paid at full salary without payroll tax deductions, if they suffer an illness or injury that arises out of their job duties.

"Recent data indicates public employers' costs related to this disability leave benefit have increased at an alarming rate. These cost figures give me pause to extend this benefit further in state law. If the City of Oceanside wishes to offer full salary in lieu of temporary disability for one year to their regular full-time lifeguards, they are free to do so by means of the collective bargaining process. Eligibility for this benefit is best left to the City of Oceanside, not the state, to determine."

Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0003213

Date of Hearing: May 4, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2493

Author:(Atkins) – As Introduced Ver:February 19, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill increases temporary disability benefits for all rank-and-file and supervisory firefighters employed by the Department of Forestry and Fire Protection (CalFIRE), regardless of their work assignment, such that the employees receive 100% of their gross pay while on disability leave, for up to one year.

FISCAL EFFECT:

1. Increased workers compensation cost to CalFIRE in the range of $850,000 GF to provide a higher level of temporary disability benefits based on the number and duration of current claims.
2. To the extent there is a behavioral response to the increased benefits that either results in more claims or longer periods of disability, the state would incur additional costs both for (1) the higher level of benefits as well as (2) overtime payments to cover for injured workers who are on leave. The extent to which this would occur is difficult to predict, but for each ten additional FTEs annually who are out on leave, costs would increase by $350,000 GF for overtime coverage as well as the marginal cost of the higher benefit amount for the ten disabled workers.
3. Based on the higher benefit amount, CalFIRE indicates it would likely request an increase in administrative staff to provide additional oversight and management of disability cases and claims. The number of staff would need to be justified based on workload, commensurate with additional claims or additional length of claims as a result of this bill. One staff would be $120,000 per year and three staff would be $350,000 GF.

COMMENTS:

1. Purpose. This bill seeks to provide state-employed firefighters with similar benefits available to local firefighters. This bill is sponsored by CalFIRE Local 2881, which represents CalFIRE firefighters.
2. 4800 and 4850 time. Current law grant special benefits to certain employees of Department of Justice, California Highway Patrol, and Department of Fish and Wildlife (Labor Code sections 4800 and 4800.5) and local public safety and firefighters (section 4850). These sections provide for a year of leave at full salary if the individual is injured or becomes ill on the job, before temporary disability (TD) benefits commence. This year is commonly called "4800" or "4850 time" The salary is not subject to state or federal taxes, meaning an employee can take home substantially more in weekly benefits than they normally earn while working. Public employers have noted this creates a disincentive for injured public safety officers to return to work, even if they are able, due to the financial loss they would suffer when they return. In the case of CalFIRE, firefighters who often are eligible for substantial overtime, the extent to which this is the case is unclear because it is not clear how 100% of gross salary available through "4800 time" would compare to the average take-home pay of firefighters that is inclusive of overtime.
3. Covered employees. This bill provides an enhanced benefit for all firefighters employed by CalFIRE, regardless of their regularly assigned duties. Some statutes require "active" law enforcement or firefighting duties in order to qualify for the enhanced benefit. For example, local firefighters have access to the enhanced benefit pursuant to Labor Code 4850, but unlike the provisions in this bill, employees of local fire agencies whose functions do not clearly fall within the scope of active firefighting and prevention service are excluded.
4. Current CalFIRE benefits. Temporary disability (TD) is available for all employees for a maximum of 104 weeks of benefit. TD pays two-thirds of gross wages on a tax-free basis, up to a maximum of $1,128 in 2016. Benefits in addition to TD are addressed through collective bargaining. The current MOU between the state and Bargaining Unit 8, which represents CalFIRE firefighters, provides for Industrial Disability Leave (IDL), which provides 2/3 of gross pay for on-the-job injuries for up to a year and Enhanced IDL (EIDL), which provides the net salary for up to a year. EIDL only applies to firefighters with serious physical injuries and any complications directly related medically and attributable to a fire, inmate assaults, and emergency medical responses, experienced in the course of fighting an active fire. An additional length of benefits applies to burn injuries. The largest cost of this bill is the differential between EIDL "net pay" benefits and the larger "100% of gross pay" benefits that would be required by this bill.
5. Recent legislation. In 2013, SB 527 (Block) was signed into law. SB 527 added lifeguards employed by the City of San Diego to the list of public safety employees entitled to 4850 time. Proponents of that bill argued that the San Diego lifeguards performed duties comparable to Los Angeles County lifeguards, who already have this benefit.
   
   Last year, AB 1451 (Chavez) sought to provide 4850 benefits to a class of lifeguards employed by the City of Oceanside, arguing that other lifeguards employed by San Diego and Los Angeles who performed comparable duties already receive this benefit. Governor Brown vetoed AB 1451. The veto message stated:

"This bill adds full-time lifeguards employed by the City of Oceanside to the list of employees who are entitled up to one year of leave, paid at full salary without payroll tax deductions, if they suffer an illness or injury that arises out of their job duties.
Recent data indicates public employers' costs related to this disability leave benefit have increased at an alarming rate. These cost figures give me pause to extend this benefit further in state law. If the City of Oceanside wishes to offer full salary in lieu of temporary disability for one year to their regular full-time lifeguards, they are free to do so by means of the collective bargaining process. Eligibility for this benefit is best left to the City of Oceanside, not the state, to determine."

Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081

Date of Hearing: April 20, 2016

ASSEMBLY COMMITTEE ON INSURANCE

Tom Daly, Chair

ABPCA Bill Id:AB 2493 (

Author:Atkins) – As Introduced Ver:February 19, 2016

SUBJECT: Firefighters: disability

SUMMARY: Authorizes enhanced temporary disability benefits (commonly referred to as "4850 time") for rank and file and supervisory firefighters employed by the California Department of Forestry and Fire Protection (CalFIRE). Specifically, this bill:

1. Grants firefighter employees of CalFIRE, whether they are rank and file or supervisory employees, the right to a leave of absence for up to one year, in lieu of other disability benefits provided by the Labor Code, with full pay in the event of a disabling injury that arises out of, or occurs in the course of, employment.
2. Provides that the benefit is available to the employee regardless of whether the firefighter is assigned to work in fire prevention, fire suppression, or other capacity.

EXISTING LAW:

1. Provides for a comprehensive system of employer-paid benefits to be provided to employees who suffer illness or injury that arises out of, or in the course of, employment.
   
2. Includes temporary disability benefits (TD) for up to 104 weeks if an employee is temporarily unable to work during recuperation from the workplace illness or injury.
   
3. Establishes a minimum and a maximum amount that an employee may receive, which is adjusted annually to reflect rising wage levels. Currently the minimum benefit is $165 per week, and the maximum benefit is $1103. The benefit is calculated based on 2/3 of an employee's average weekly wages, subject to the maximum cap.
   
4. Provides specified public safety officers (most peace officer and firefighter employees of local governments and special districts) with an enhanced temporary disability benefit for up to the first year of temporary disability. These safety officers receive their full salary (tax free) during the first year of temporary disability. (Labor Code Section 4850.)
   
5. Provides this same enhanced disability benefit to officers of the California Highway Patrol. Labor Code Section 4800.5.)
   
6. Provides this same enhanced benefit to employees of the Department of Justice who are in the "state peace officer/firefighter" classification, whose principal duties involve active law enforcement, and to harbor police employed by the San Francisco Harbor Commission. (Labor Code Section 4800.)
   
7. Provides this same benefit to firefighters employed by the University of California fire department, whose primary duties consist of active firefighting and prevention services, and law enforcement officers of the University of California Police Department, whose primary duties consist of active law enforcement. (Labor Code Sections 4804.1 and 4806.)
   
8. Provides, for employees of the California State University Police Department whose principal duties consist of active law enforcement, an enhanced industrial disability leave for up to one year in an amount equal to his or her "net take home salary," defined as the salary received after state and federal income taxes, and employee retirement contributions, have been deducted. (Labor Code Section 4816.)
   

FISCAL EFFECT: Undetermined increased workers' compensation costs to the State of California.

COMMENTS:

1. Purpose. The purpose of the bill is to treat CalFIRE firefighters fairly by providing them with benefits similar to the benefits available to most other firefighters in California. According to the author, "A firefighter is a firefighter, regardless of what entity issues their badge." The risk factors faced by CalFIRE firefighters are the same as the firefighters employed by other agencies, and the benefits available to CalFIRE firefighters ought to be the same.
2. Temporary disability benefits. The goal of TD is to approximate an employee's take home pay during the period after injury when the employee is temporarily unable to work. This goal is implemented by basing the weekly TD benefit on 2/3 of the employee's average weekly wages. Because there is a cap, employees who make more than approximately $1600 per week do not reach this 2/3 goal, but because the benefit is tax free, most employees receive an adequate TD benefit while they are recovering.
3. Special public safety benefits. Most public safety officers (peace officer, sheriff, and firefighter employees generally) receive certain special workers' compensation benefits that other employees do not receive. Most notably, this class of employee has the benefit of a range of "presumptions" that certain illnesses or injuries are automatically deemed to be work related. All other employees are required to prove that their condition is work related. The second significant special workers' compensation benefit is granted by Labor Code Sections 4800 through 4850 – commonly referred to as "4850 time" – and this law grants defined employees up to one year of full salary in lieu of the regular method for calculating TD benefits.
4. Tax advantages. Because these benefits are paid due to disability, they are not subject to either state or federal taxes. This applies to regular TD benefits, and to 4800-4850 benefits. Because of the tax-free status of this benefit, a public safety officer takes home substantially more in weekly benefits than they normally earn while working – i.e., normal take home pay plus what would have been paid in taxes. Public employers have long complained that this creates a disincentive in getting injured public safety officers to return to work, even if they are able, due to the financial loss they would suffer when they return.
5. Collective bargaining? If a public agency wants to grant employees certain benefits of employment, it is able to accomplish that goal without need for a statutory change. In fact, the City of Los Angeles has provided "4850-like" benefits to a range of employees without need of a statute mandating the benefit for those employees. If it is correct, as the author asserts, that both the City and its employees are in agreement, then the collective bargaining process, and not legislation, may be the better approach to enhancing the benefits of this class of employee.
6. Scope of bill. As noted above, current law with respect to some public safety officers employed by the State of California does not confer the broadest scope of the leave of absence benefits that many peace officers and firefighters enjoy. Some statutes require "active" law enforcement or firefighting duties. One statute limits the amount paid to what the employee was actually taking home in compensation. The bill provides for a full salary leave of absence for all firefighters employed by CalFIRE, regardless of their regularly assigned duties.
7. Recent legislation. In 2013, SB 527 (Block) was signed into law. SB 527 added lifeguards employed by the City of San Diego to the list of public safety employees entitled to 4850 time. Proponents of that bill argued that the San Diego lifeguards performed duties comparable to Los Angeles County lifeguards, who already have this benefit.
   
   Last year, AB 1451 (Chavez) sought to provide 4850 benefits to a class of lifeguards employed by the City of Oceanside, arguing that other lifeguards employed by San Diego and Los Angeles who performed comparable duties already receive this benefit. Governor Brown vetoed AB 1451. The veto message stated:
   
   "This bill adds full-time lifeguards employed by the City of Oceanside to the list of employees who are entitled up to one year of leave, paid at full salary without payroll tax deductions, if they suffer an illness or injury that arises out of their job duties.
   
   Recent data indicates public employers' costs related to this disability leave benefit have increased at an alarming rate. These cost figures give me pause to extend this benefit further in state law. If the City of Oceanside wishes to offer full salary in lieu of temporary disability for one year to their regular full-time lifeguards, they are free to do so by means of the collective bargaining process. Eligibility for this benefit is best left to the City of Oceanside, not the state, to determine."

REGISTERED SUPPORT / OPPOSITION:

Support

California Professional Firefighters

California State Firefighters Association

CalFIRE Local 2881

Opposition

None received

Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086