Home > Authors > Michael Dworsky > Benefits and Earnings Losses for Permanently Disabled Workers in California
Benefits and Earnings Losses for Permanently Disabled Workers in California
"In 2013, California began implementation of major reforms to the state workers' compensation system that were enacted in 2012 as part of Senate Bill 863 (SB863). These reforms included several changes to Permanent Partial Disability (PPD) benefits. This report provides early evidence on how these reforms have affected disability ratings and benefits and compares PPD benefits to the earnings losses experienced by permanently disabled workers. Because SB863 changed benefits in part by modifying the disability rating system, we also evaluate the impact of these changes on the equity of PPD benefits. In order to address these questions, we analyzed administrative data identifying permanently disabled workers that was linked to data on wage and salary earnings. We find that permanently disabled workers experience large earnings losses, with earnings reduced by 30% on average in the second...
