Bill > SB487

This bill modifies workers' compensation laws specifically for peace officers and firefighters employed by local entities like cities, counties, and fire protection districts. The bill limits an employer's ability to recover costs from third-party liability insurance settlements by capping the employer's recovery at one-third of the defendant's insurance policy limits, but only in cases where the employee's total damages exceed the net recovery and available insurance limits are insufficient to fully compensate both the employee and employer. The bill prevents employers from using the third-party settlement as a credit or offset against future workers' compensation benefits for these specific employees. Additionally, the bill requires that any settlement or release agreements for these employees must limit the employer's reimbursement claim to the portion of the settlement specifically allocated to the employer. These provisions are designed to provide more protection and financial recovery options for peace officers and firefighters who are injured on the job and pursue legal action against a third party responsible for their injuries, while still maintaining a fair balance between the employer's and employee's interests in the recovery process.

Budget and Finance, Business and Industry, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB487