AB 1746 which was signed into law by Governor Brown this week, requires the Administrative Director of the Division of Workers Compensation (DWC) to include injured workers who are or were employed by an illegally uninsured employer on the priority conference calendar when the issues in dispute are employment or injury arising out of employment or in the course of employment. The bill amends Section 5502 of the Labor Code to add the language shown in bold below.

“The administrative director shall establish a priority conference calendar for cases in which the employee is represented by an attorney or is or was employed by an illegally uninsured employer and the issues in dispute are employment or injury arising out of employment or in the course of employment. The conference shall be conducted by a workers’ compensation administrative law judge within 30 days after the declaration of readiness to proceed. If the dispute cannot be resolved at the conference, a trial shall be set as expeditiously as possible, unless good cause is shown why discovery is not complete, in which case status conferences shall be held at regular intervals. The case shall be set for trial when discovery is complete, or when the workers’ compensation administrative law judge determines that the parties have had sufficient time in which to complete reasonable discovery. A determination as to the rights of the parties shall be made and filed within 30 days after the trial.”

The law passed the state Assembly in May and the Senate on July 3 with no opposition by any legislator. Prior to the vote, the supporters of the bill were AFSCME, AFL-CIO, Association of California Healthcare Districts, California Chamber of Commerce, California Coalition on Workers’ Compensation, California Labor Federation, AFL-CIO, California Professional Firefighters, Pacific Compensation Insurance Company, Rural County Representatives of California, Salud Para La Gente, The California Applicant Attorneys Association, Watsonville Law Center and Worksafe. There was no opposition voiced by any industry stakeholder group.

The argument in support of the law stated “that this bill is a necessary reform that will help some of the most vulnerable injured workers and assist California in its fight against the underground economy. Specifically, proponents argue that injured workers who work for illegally uninsured employers do not have the same access to medical care, as insurers are required by law to provide medical benefits in a timely manner with a significant pool of medical providers. As injured workers who work or worked for an illegally uninsured employer have none of these protections, this bill ensures that they receive an expedited hearing so that they can quickly receive the medical care they need. Additionally, proponents note that this bill allows for the rapid identification of illegally uninsured employers, giving California another important tool in the fight against the underground economy.”