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LEGAL-EASE: Predictions for 2011 |
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by Steve Kline, Esq.
EK Health Services' Legal Counsel
Soothsayers beware. I am going to go out on a limb and trying to predict what will happen in the California workers' compensation world in 2011. The crystal ball has been removed from its red velvet box and is on the table. Please quiet yourself, this takes a lot of concentration.
Well as you are probably aware, California will have a new Democratic Governor, Jerry Brown. (I know I am right, but this one doesn’t count as a prediction.) With Democratic majorities in both the Assembly and the Senate, what legislation will pass and what will the new Governor sign?
First and foremost, there will be a new permanent disability schedule. However, unless the new DWC Administrative Director revises it first, the Legislature’s actions will not go into effect until 1/1/2012 as there are not enough votes to make it an urgency piece of legislation.
I anticipate that a bill to modify permanent disability apportionment will pass and more likely than not, the Governor will sign that legislation.
Any other radical changes to the workers' compensation system probably will not be signed. The Governor is going to need all the support he can to find new revenue sources and making business an mortal enemy by undoing the 2004 reforms would not be practical
As I opined earlier, we should have a new DWC Administrative Director. As the Captain of the SS WCAB, there will be minor changes with no shifts in the mighty boat. As far as openings at the Commissioner level, my prediction is that one or two applicant oriented judges or lawyers will be elevated to the Commission and that shift may be far more significant with the day to day activities and interpretations.
It is not quite clear as to how the new Insurance Commissioner will rule his roost. I would expect that he is going to be more involved with health care lines before he works his way to the premium recommendations for workers' compensation carriers.
Any major legislative push in the workers' compensation world will come late in the session. The state budget controversies are all-too consuming to have any other issue break into the mainstream media. Further, labor and the business interests may realize that the window of opportunity is limited to 2011 because of two new factors for the 2012 elections.
First, all 40 senate and all 80 assembly districts will be re-drawn By this new public independent Redistricting Commission. Add that to the fact that there will be no partisan primaries in the June, 2012 elections. The people passed the referendum changing the way we will vote in 2012 with all the legislative candidates regardless of parties being on one ballot and the top two, regardless of party, facing each other in November. This new system could make for some wild and unpredictable changes for the future legislatures. Thus the window for making significant reversals to the 2004 reforms could be very limited and may not come until the wee hours of the end of the session.
It should be an interesting year for workers' compensation. Through these Legal Ease updates, I look forward to letting you know how it develops. It should be an interesting ride.
I have placed the crystal ball back into the red velvet box until a future time. May you and your family have a Happy New Year!
--- Stephen L. Kline, Esq.
Legal Counsel
EK Health Services, Inc.
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V. 2011 
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