Review of the Supplemental Job Displacement Benefit & Proposed

RTW Regulations

1. Overview of the status of the proposed RTW regs & SJDB

(Sandra Cortes)

a) Proposed RTW regs (AR 10002):

Effective date

Offer of work by employers of 50+ employees

15% PD increase when employer offers (DWC –AD 10003)

15% PD decrease when employer does not offer (DWC-AD 10003)

15% PD withholding when there is a P&S dispute and a DWC-AD 10003 offer has been made. Ultimately the following will occur:

15% PD affected by Termination of employment offered & accepted

b) Types of RTW (LC 4658.1 & AR 10001)

The E/R says no mod or alt work exist after 60 days of last pmt of TDThe % of PD award determines the amount of the voucher< 15% PD = up to $4,00015 – 25% PD = up to $6,00026 – 49% PD = up to $8,00050 – 99% PD = up to $10,000

Regular Work

Modified Work

Alternative Work

c) The SJDB is a non-transferable voucher for:

Educational related retraining and/or

Skill enhancement

d) What is covered under the voucher

School tuition

Fees

Books

Expenses required by the school for training

No more than 10% of the voucher can be used for Vocational Return to Work Counselor (VRTWC)

e) What determines the amount of the voucher?

The E/R says no mod or alt work exist after 60 days of last payment of TD

The % of PD award determines the amount of the voucher

< 15% PD = up to $4,000

15 – 25% PD = up to $6,000

26 – 49% PD = up to $8,000

50 – 99% PD = up to $10,000

f) Mechanics of RTW & SJDB/ Completing the Forms

DWC – AD 10003 Notice of Regular Work vs. DWC – AD 10133.53 Notice of Offer of Offer of Modified or Alternative Work

2. Timelines & Notice requirements SJDB & RTW (Destie Overpeck)

Notice of Potential Right to SJDB w/in 10 days of last pmt of TD

If mod or alt available, offer must be made w/in 30 days of TD pmts

SJDB Timeline

Employee has 30 days from receipt of offer to accept or reject offer of mod or alt work

Eligibility for SJDB – employee must be off work 60 days from last pmt of TD

Voucher due from claims administrator w/in 25 days of PPD award

Claims administrator issue reimbursement pmts w/in 45 days from receipt of documentation and receipts

W/in 60 days the employee is PPD, CA must serve offer of reg, mod or alt work

If employer serves employee with offer of reg, mod or alt work CA may reduce remaining PPD pmts by 15%

RTW Timeline

If employer does not offer reg, mod or alt work, each pmt remaining shall be increased by 15%

Employee may object to the offer of reg work w/in 20 days of receipt of notice

Employee has 30 days to accept or reject offer of mod or alt work

3. Disputed issues & how they will be addressed (Otis Byrd)

The employee’s medical eligibility for the SJDB

The selection of a VRTWC. The employee’s attorney requests that the CA make the selection. The atty made reference to Labor Code 4636 & 4637. Employee TD > 90 days

The employee’s request for voucher reimbursement for self procured training

The parties disagree on the purchase of a computer as a part of the voucher. The school says it is necessary and the defendant believes is not a tool or should be provided by the school as advertised

Employee received a 7% Award and requests a $4,000 voucher and 12% attorney fees. Defendant refused to pay the voucher and assign a VRTWC

How will disputes be handled regarding the SJDB

Once a dispute has been received:

The opposing party has 20 calendar days to respond

The AD or the designee may request additional info w/in 30 days of receiptof the request of a properly submittedform

W/in 60 days of receipt the AD must issue or the request is deemed denied

Appeals must be made w/in 20 days

4. Employer Reimbursement following RTW (Otis Byrd)

a) RTW under Labor Code 139.48

RTW Fund: 5814.6 penalties, transfers from Revolving Fund (LC 62.5)

Workers on TD, maximum $1,250

Workers on PD, maximum $2,500

Maximum reimbursement per worker is $2,500

What are workplace modifications

Unlawful for an employer todiscriminate

Disputes may initially be handledusing same procedure as in SJDBregulations

5. Enforcement (Destie Overpeck)

a) Proposed audit penalties for failure to comply with SJDB & RTW regulations

Audit will assess penalties for late payment and notices

Audit will assess penalties forfailure to comply with the

regulations

DWC has drafted audit penalties for violations of the SJDB regulations, expect notice of rulemaking soon

The audit penalties for RTW violations will be drafted after the RTW regulations are final

10111.2(b)(8)(vi) catch-all penalty for failure to comply with anyregulation not listed in the penalty schedule is $100

6. Questions & Answers

Byrd, Overpeck & Cortes

The End