SB 815 Vetoed by Governor Schwarzenegger

In a move expected by many industry and political observers, Governor Arnold Schwarzenegger vetoed SB 815 on September 19, 2006.

SB 815, authored by Senator Don Perata (D) of Oakland, was designed to raise the value of permanent disability in all claims for injury on or after January 1, 2007 by extending the number of weeks that permanent disability would be payable.  SB 815 allowed for a three year phase-in of the increased number of weeks that permanent disability would be paid until, ultimately, for injuries occurring on or after January 1, 2009, the number of weeks that permanent disability was to have been paid would be double that of the current permanent disability schedule.

Reaction to the veto has varied.  The California Applicant's Attorneys Association has accused the Governor of adding "insult to workers' injury" by vetoing the measure, while business and small business groups across the state have been calling for the veto.

Many believe that SB 815 was merely a preview of more legislative efforts to curb the effect of SB 899 in the next session.

Again, we thank you for your interest in FS&K Work Comp Times and look forward to keeping you informed on the Workers' Compensation issues that most affect you.

Sincerely,

The FSK Newsletter Team