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 recovery in third-party liability cases to no more than one-third of the defendant's insurance policy limits, but only if the employee can demonstrate that their total damages exceed the net recovery and that available insurance limits are insufficient to fully compensate both the employer and employee. The bill prohibits employers from using an employee's third-party recovery as a credit or offset against future workers' compensation benefits, ensuring that peace officers and firefighters can receive their full compensation. Additionally, the bill requires that any settlement or release of claims involving these employees must limit the employer's reimbursement to the portion of the settlement specifically allocated to the employer. These provisions are intended to provide more equitable treatment for peace officers and firefighters who are injured on the job and seek damages from third parties, by protecting their ability to receive full compensation while still allowing employers a fair share of recovery.

Budget and Finance, Business and Industry, Labor and Employment

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