SB 880: Workers’ compensation.

Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of his or her employment. Existing law governs temporary and permanent disability indemnity payments. Existing law prohibits a disability indemnity payment from being made by any written instrument unless it is immediately negotiable and payable in cash, on demand, without discount, at some established place of business in the state.

Existing law establishes in the Department of Industrial Relations the Commission on Health and Safety and Workers Compensation to conduct a continuing examination of the workers compensation system and of the states activities to prevent industrial injuries and occupational diseases. Existing law authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities and to issue an annual report on the system.

This bill would, until January 1, 2023, authorize an employer, with the written consent of the employee, to deposit disability indemnity payments for the employee in a prepaid card account that meets specified requirements, including, among other things, allowing the employee reasonable access to in-network automatic teller machines. The bill would require employers to provide all necessary aggregated data on their prepaid account programs to the Commission on Health and Safety and Workers Compensation upon request, and would require the commission to issue a report on or before December 1, 2022, to the Legislature regarding payments made to those prepaid card accounts, as specified.