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Home > Local Business News > Sacramento > Proposal: Boost disabled-worker benefits 16%

Proposal: Boost disabled-worker benefits 16%

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Benefits for injured workers would increase by an average of 16 percent under changes to the permanent disability rating schedule proposed Friday by state regulators.

Permanent disability benefits are paid to workers whose injuries result in permanent impairment. The California Department of Industrial Relations, Division of Workers' Compensation will accept comments on the draft regulations until May 23.

"Workers' compensation reforms require the disability rating schedule to be based on empirical data that ties wage loss to injury type," division Administrative Director Carrie Nevans said in a news release."We've been studying how those two factors intersect under the 2005 scheduleand now have enough data and analysis to support this increase."

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The proposal calls for adjusting a key factor used in determining benefit amounts received by injured workers so that it reflects data on wages lost by workers with specific injury types, such as injuries to the spine, hand or knee. The division estimates that the change would increase disability ratings--the percentage of disability from which benefit dollars are derived -- overall by an average of 12 percent.

In another change, the formula would be adjusted to correlate injury types with wage loss. Injuries with higher wage loss, such as spine or wrist injuries, would receive a greater upward adjustment, while those with lower wage loss, such as knee injuries, would receive less of an upward adjustment, the division said.

"This proposal will provide more money in benefits for workers with the highest wage loss," Nevans said. "This includes increases for some of the most common injuries, like those to the back, wrist, hand and ankle."

In yet another change, the division would adjust factors related to age, increasing disability ratings for those under age 21 and over age 52.

The draft regulations can be foundon the state's Web siteand comments are being accepted.


© 2008 American City Business Journals, Inc. All rights reserved.

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