Daily Blast July 28, 2017

Today, the Court of Appeal, Sixth Appellate District (San Jose), in Baker v. Workers’ Compensation Appeals Board (July 28, 2017, H043291) ___ Cal.App.5th ___, determined when the Subsequent Injuries Benefits Trust Fund (“SIBTF”), the state fund that pays workers’ compensation benefits to certain permanently disabled workers, begins to owe benefits to a qualifying applicant. (Slip opn., p. 1.) The court held “that under the controlling statutes, [SIBTF] benefits commence at the time the employer’s obligation to pay permanent disability benefits begins.” (Ibid.)

The Court of Appeal determined that Labor Code section 4650, subdivision (b) (“section 4650(b)”), governs the payment of workers’ compensation benefits for permanent disability. (Slip. opn., p. 5.) Under the statute, the employer must begin making permanent disability payments to an employee within 14 days of the date the employee’s last payment for temporary disability was owed. Section 4650(b) applies only to benefits payable by employers and SIBTF is not considered an employer. Instead, Labor Code section 4751 (“section 4751”) governs the timing of SIBTF benefit payments. (Id. at p. 6.) The court concluded that under section 4751, “the Legislature’s mandate that SIBTF benefits (when an employee qualifies for them) ‘shall be paid in addition to’ permanent disability benefits to mean that the SIBTF is required to commence payment at the same time as an employer’s obligation to make permanent disability payments begins.” (Id. at p. 7.) Thus, “[t]he trigger for the start of SIBTF benefits must be the qualifying employee’s entitlement to permanent disability payments from the employer.” (Ibid.)

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