The California Workers’ Compensation Institute (CWCI) recently sent out an email bulletin summarizing key bills enacted in 2026 that impact the workers’ comp industry.
Key bills touched upon:
- A budget bill that included updates on petitions for reconsideration
- The use of prepaid debit cards for indemnity benefits
- AI regulations for litigation and workplace surveillance
- Penalties for violation of certain ordinances, included workplace safety issues
- Workplace safety standards for outdoor pollution
- Expansions to the PTSD presumption
- A pilot program to address staffing problems for the Department of Industrial Relations
Senate Bill 171 was a high-level budget bill with many impacts, and among its many sections it permanently established that the Workers’ Compensation Appeals Board has 60 days from the date it receives a case file to act on a petition for reconsideration.
Assembly Bill 1683 permanently extended a program that allowed employers to deposit disability indemnity payments in a prepaid card account for employees. The program was originally intended to end in 2027 but will now continue indefinitely. Approximately 10,000 injured workers have received these cards so far, with $214 million distributed.
Senate Bill 574 established requirements governing the use of generative artificial intelligence (AI) by attorneys and arbitrators, modifying oversight requirements for certain alternative dispute resolution (ADR) providers.
Assembly Bill 1883 prohibits an employer from using a workplace surveillance tool that uses artificial intelligence to, among other things, collect neural data or recognize an individual’s emotional state. Employers violating this law would receive a $500 penalty for each violation.
Senate Bill 716 authorizes the county board of supervisors to impose fines, penalties, and forfeitures for violations of ordinances. While this bill does not specifically call out workers’ comp, violations can include issues that pose a threat to health and safety, which can include the workplace.
Senate Bill 1046 requires the Division of Occupational Safety and Health to propose a standard that protects the health and safety of employees who risk high or prolonged exposure to transboundary pollution, as defined, in outdoor occupational environments, on or before January 1, 2030.
Senate Bill 1227 requires the Department of Industrial Relations (DIR) and the Department of Human Resources to partner with the bargaining units representing employees of the DIR to design and develop an apprenticeship pilot program that addresses DIR’s staffing challenges.
Among many reasons, this bill was raised due to recent investigations of DIR by the California State Auditor demonstrate the way inadequate staffing at the Division of Occupational Safety and Health and the Division of Labor Standards Enforcement weakens the state’s enforcement of California’s worker protections statutes, limiting DIR’s investigative reach, and contributing to workload backlogs and long case processing timelines.
Senate Bill 1444 expanded the state’s existing presumption for PTSD claims that arise from employment by removing a requirement for firefighters at commercial airports to have a Fire Control 5 certification to qualify for the presumption.
