REPORT TO COUNCIL
SUBJECT
Title
Action on an Ordinance Codifying Existing Claims Settlement Authority and Amending Settlement Authority for Workers' Compensation Matters
Report
BACKGROUND
Settlement authority for resolving claims against the City, including workers' compensation claims, have historically been set by resolution (Attachment 1). Currently, those settlement authority amounts are:
* Claims up to $5,000 - settled by third-party adjuster
* Claims up to $25,000 - settled by City Attorney
* Claims up to $50,000 - settled by City Attorney and City Manager
* Police Misconduct Cases - settled by City Council (all amounts)
In order to promote efficiency and transparency for the general public, and to bring the City into alignment with industry standards, while ensuring compliance with the applicable provisions of the Government Code, Labor Code and California Code of Regulations, the proposed ordinance codifies settlement authority limits and increases settlement authority for worker's compensation matters.
DISCUSSION
Worker's Compensation Matters:
Claims for which the workers' compensation system provides the exclusive remedy are exempt from the Government Claims Act (Government Code ?905). As such, these claims are not subject to the $50,000 statutory cap on Council's ability to delegate settlement of claims (Government Code ?935.4). Based upon this, several neighboring jurisdictions, as described below, delegate full settlement authority to staff for compromise of workers' compensation matters.
Workers' compensation claim values are driven by prescribed statutory formulas. State law requires a permanent disability (PD) rating for an injured worker. A PD rating is a set amount for medical care payments and is dictated by the worker's level of impairment, the medical opinions about his/her condition, and the State of California's rating system. Once the PD rating is set at the Workers' Compensation Appeals Board (WCAB), there is little-to-no discr...
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