SB 1159: Clarifying COVID-19 workers’ compensation laws

Senate Bill 1159, which went into effect in September, makes it easier for employees who contract COVID-19 to make claims under the state's workers' compensation law. Legislature believed the burden of fighting the disease had fallen disproportionately to a small group of workers, and so the bill was passed to reduce the barriers to accessing the workers' compensation system for these workers. SB 1159 was passed as an urgency statute, meaning it took effect immediately upon signing.

SB 1159 adds three new Labor Code sections that establish COVID-19 presumptions. First, Labor Code Section 3212.86 codifies Gov. Gavin Newsom's Executive Order N-62-20, which created a temporary presumption for employees working from March 19, 2020, through July 5, 2020. Second, Section 3212.8, which applies to front-line workers (e.g., peace officers, firefighters, health care providers, home care workers and IHSS workers), adds two new presumptions for COVID-19-related diseases on or after July 6, 2020. Section 3212.88 applies to all other employees who contract COVID-19 due to a workplace "outbreak."

The bill defines an outbreak as occurring when, within 14 calendar days, the following occurs at a specific place of employment: (1) four or more employees who contract COVID-19; (2) for employers with more than 100 employees, four percent or more of the employees contract the disease; or (3) a specific place of employment is ordered to close by government officials.

The presumptions established by SB 1159 are rebuttable by "other evidence." Nevertheless, if a presumption applies, the burden rests with employer to affirmatively prove that the employee affirmatively did not become infected with COVID-19 on the job.

SB 1159 provides that all the normal workers' compensation benefits are available to these employees who become presumptively eligible for workers' compensation benefits. It provides that the presumptions established by the bill continue for 14 days after the last day of employment with an employer. It also shortens the investigation period for COVID-19 claims. For front-line workers under Section 3212.87, an employer must deny a claim within 30 days after the filing of a claim form, and for all other workers under Section 3212.88, an employer must deny a claim within 45 days after the filing of a claim form.

SB 1159 requires employer to report to claims administrators when they know or reasonably should know that an employee has tested positive for COVID-19, so that the claims administrator can determine whether an outbreak has occurred for the purposes of Section 3212.88. Employer must report specified information whether or not the employee asserts the infection is work-related or has filed a claim form and may face civil penalties for intentionally submitting false or misleading information or failing to submit the required information.

The presumptions established by SB 1159 remain in effect until Jan. 1, 2023.