HomeMy WebLinkAbout2015-04-07; City Council; 21919; Increasing Workers' Compensation Claims Settlement AuthorityCITY OF CARLSBAD - AGENDA BILL 11
AB# 21,919 ADOPT RESOLUTION INCREASING WORKERS'
COMPENSATION CLAIMS SETTLEMENT
AUTHORITY FROM $25,000 TO $50,000 WITH
NO ANNUAL FISCAL IMPACT.
DEPT. HEAD <^(L-
MTG. 4/07/15
ADOPT RESOLUTION INCREASING WORKERS'
COMPENSATION CLAIMS SETTLEMENT
AUTHORITY FROM $25,000 TO $50,000 WITH
NO ANNUAL FISCAL IMPACT.
CITY ATTY.
DEPT. ASD-HR
ADOPT RESOLUTION INCREASING WORKERS'
COMPENSATION CLAIMS SETTLEMENT
AUTHORITY FROM $25,000 TO $50,000 WITH
NO ANNUAL FISCAL IMPACT. CITYMGR-ex^^
RECOMMENDED ACTION:
Adopt Resolution No. 2015-086 increasing the Workers' Compensation claims settlement authority
from $25,000 to $50,000 with no annual fiscal impact.
ITEM EXPLANATION:
In 2000 Council adopted Resolution 2000-180 providing the City Manager, with the concurrence ofthe
City Attorney, the authority to settle workers' compensation claims against the city when the amount to
be paid pursuant to the settlement does not exceed twenty-five thousand dollars ($25,000). This
provided staff with an increase in settlement authority from the previous level often thousand dollars
($10,000). The attached Resolution would increase this settlement authority to fifty thousand dollars
($50,000) in orderto expedite the payment of workers' compensation claims.
For the most part, the settlement of workers' compensation claims is dictated by the State of California.
The State Office of Benefit Determination requires settlements to be calculated in a specific manner. A
physician's report is "rated", using specific criteria developed by the State, to arrive at a level of
permanent disability (PD) that is equivalent to a sum of money. This sum of money constitutes the
"settlement" with the employee. The State requires that PD payments be made within a specified time
period. Under Section 4650 ofthe Labor Code, employers are mandated to begin paying PD benefits
within 14 days ofthe date the employee is determined to be "permanent and stationary" by the
treating physician. Even if there is a disagreement on the total amount ofthe settlement, or the city is
waiting for completed settlement paperwork on a case, the city must make advances in good faith
toward a sum that is a reasonable expectation of settlement. Under SB863, effective January 1, 2013,
for injured workers who are returned to work with the city in the same manner as prior to the injury,
the PD payments can be deferred until the settlement is completed.
As a result of this process, there is very little discretion that can be applied to workers' compensation
settlements. For most settlements presented to the City Council, the Council is simply approving
payments that have already been made or payments that have already been mandated by the State. In
nearly all cases, except those litigated, there is little discretionary action provided for under the Labor
Code. Even ifthe rating on one medical report is disputed, it is contested through another physician's
report which undergoes the same rating system. Finally, all settlements, contested or not, are approved
DEPARTMENT CONTACT: Donna Hernandez 760-602-7533 Donna.Hernandez(S)carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
Page 2
by the Workers' Compensation Appeals Board (WCAB) and are adjusted if a judge so determines it is
appropriate.
In recognition ofthe state laws surrounding settlement determinations and procedures, the increase in
the cost of settlements since the limit was increased in 2000, and the importance of public review of
expenditures, staff recommends adoption ofthe attached resolution to provide the City Manager, with
the concurrence of the City Attorney, the authority to settle workers' compensation claims against the
city when the amount to be paid pursuant to the settlement does not exceed fifty thousand dollars
($50,000).
FISCAL IMPACT;
Revising the settlement authority limits will not have a direct fiscal impact on the city. However, the
quick and expeditious settlement of certain claims may help the city avoid additional legal costs and/or
increases in the amounts claimed due to frustration with the settlement process.
ENVIRONMENTAL IMPACT;
Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment,
or a reasonable foreseeable indirect physical change in the environment; and therefore, does not
require environmental review.
EXHIBITS:
1. Resolution No. 2015-086
EXHIBIT 1
1 RESOLUTION NO. 2015-086
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, INCREASING WORKERS' COMPENSATION CLAIMS
SETTLEMENT AUTHORITY FROM $25,000 TO $50,000
WHEREAS, the workers' compensation claims settlement authority limit was established
in 2000; and
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^ WHEREAS, the effective and expedient administration ofthe workers' compensation
g self-insurance programs requires that the authority to settle claims be clearly defined and
7 established; and
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11 WHEREAS, the need exists to revise the settlement authority limits.
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15 1. That the above recitations are true and correct.
^6 2. That the City Manager with the concurrence of the City Attorney shall have the
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21 against the city when the amount to be paid pursuant to the settlement exceeds fifty
22 thousand dollars ($50,000).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
authority to settle workers' compensation claims against the city when the amount to
be paid pursuant to the settlement does not exceed fifty thousand ($50,000).
That the City Council shall have authority to settle workers' compensation claims
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 7*^ day of April, 2015, by the following vote to wit:
AYES:
NOES:
ABSENT:
Council Members Hall, Blackburn, Schumacher, Wood, Packard.
None.
None.
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON, <dty Clerk
(SEAL) .NV^^^^I'L",.