Calif. permanent disability cuts ruled invalid

June 4, 2007

A Workers Compensation Appeals Board judge has invalidated California’s rating schedule that cut injured workers’ permanent disability compensation. According to the California Applicant Attorneys Association, Judge Jacqueline Duncan ruled in Scott Boughner vs. Comp USA Inc. and Zurich North America that the Schwarzenegger Administration violated legislative code because its PDrating schedule was not based on empirical data.

“The Administrative Director failed to base the adjusted rating schedule on empirical data and findings from the Evaluation of California’s Permanent Disability Rating Schedule, Interim Report (December 2003), prepared by the RAND Institute for Civil Justice, as required by Labor Code 4660(b)(2). The Administrative Director failed to base the adjusted rating schedule on data from empirical studies, as required by Labor Code 4660(b)(2),” the case decision indicated.

In the case, Scott Boughner, an employee of Comp USA, injured his knee during work. Judge Duncan ruled he was entitled to award for reasonable medical treatment for his knee.

Advocates for injured workers argue permanent disability coverage has been cut too severely. Since workers’ comp reforms were implemented in 2004, studies have shown PD has been reduced by more than half.

“We have repeatedly asked the administration to overturn the drastic reductions in the already-meager compensation permanently injured workers receive,” said California CAAA President Linda Atcherley.

Topics California Workers' Compensation

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Insurance Journal Magazine June 4, 2007
June 4, 2007
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