SACRAMENTO – Californians permanently injured on the job would get an average 16 percent increase in disability payments under rules proposed by the state Division of Workers' Compensation.
The formula proposed Friday is based on new data that link wage losses to the type of injury suffered by the worker. The formula calculates payments to disabled workers based on estimates of how much they would earn if they weren't permanently injured.
Division Director Carrie Nevans said the new formula is based on a review of how wage losses relate to injuries under the worker compensation formula in use since 2005.
The proposed formula would bring larger increases for workers who suffer the highest wage loss and increase benefits for some of the most common and serious injuries such as those to the back, wrist, hand and ankle, Nevans said. The formula would also eliminate age as a factor in setting benefits.
The public can comment through May 23. The proposed formula change will go through several public hearings and revisions before a final formula is adopted.
Critics said the current disability formula is too low, so a small increase isn't nearly enough. Sue Borg, president of the California Applicants Attorneys Association, which represents injured workers, called the proposed increase “appalling.”
Workers' compensation changes since a 2004 overhaul have cut employers' insurance premiums by more than half, from $6.47 per $100 in payroll in 2003 to less than $3 per $100 last year.
Groups representing injured workers said benefits are far below those of other states.
A U.S. Chamber of Commerce report found a California worker who lost an eye in a job-related injury would get an average of $17,714 in benefits. The same injury would bring $64,000 in New York and $168,318 in Illinois.
