State Senate Votes to Hike Injury Benefits

The state Senate, entering a thorny labor-management dispute, voted Thursday to boost temporary disability benefits paid to employees injured on the job despite assertions that it would cost California business $200 million and do little to reform a badly flawed workers’ compensation system.

The 21-12 vote in the Democrat-dominated upper house fell largely along party lines, with the labor-sponsored measure drawing heavy opposition from almost every segment of the business community.

The legislation, by Sen. Bill Lockyer (D-San Leandro), would increase the maximum weekly disability benefit by $49 to $273. It also would increase death benefits by about 20% to a maximum range of $85,000 to $115,000, depending on the number of dependents. The measure, which went to the Assembly, would not affect benefits paid to those receiving payments because of permanent disability.

Lockyer, with strong backing from Sen. President Pro Tem David A. Roberti (D-Los Angeles), said the legislation represents a modest increase and that attempts had been made to satisfy business interests by including provisions to tighten some workers’ compensation regulations.

Veto Predicted

Lockyer also suggested that continued opposition by influential businesses would probably trigger a veto if the measure reaches Republican Gov. George Deukmejian.

Opponents of the plan countered that the reforms included in the measure do not go far enough in discouraging workers from exaggerating the seriousness of their injuries and using the system to delay returning to work. A recent report published by the California Manufacturer’s Assn. described the existing system as “a rip-off to employers and employees alike.”

According to figures developed by both sides, worker compensation premiums paid by California businesses are among the highest in the nation and benefits paid to injured workers are lower than than those in 38 other states.

Sen. John Seymour (R-Anaheim) said that fees charged by insurance companies and trial lawyers who defend injured workers are responsible for consuming much of what otherwise would go to workers.