No claim for compensation, except as provided in Section 96, is assignable before payment, but this provision does not affect the survival thereof.
Compensation ClaimsPayment and Assignment
Section § 4900
This law says that claims for compensation can’t be transferred to someone else before they're paid, except for specific situations mentioned in another section (Section 96). However, even if a person can't transfer their claim, it doesn't mean their claim disappears if they pass away.
compensation claims assignment of claims claim survival
Section § 4901
This law states that if someone is entitled to compensation for a claim under this section, that compensation cannot be taken or used to pay off their debts, unless specific exceptions are detailed later on.
No claim for compensation nor compensation awarded, adjudged, or paid, is subject to be taken for the debts of the party entitled to such compensation except as hereinafter provided.
compensation protection debt exemption claims against compensation
Section § 4902
This law mandates that any compensation for a claim must be paid directly to the person entitled to it, rather than to their attorney or agent. This rule can only change if the appeals board decides otherwise. If an employer mistakenly pays an attorney or agent in violation of this rule, that payment won't count as a credit for the employer.
No compensation, whether awarded or voluntarily paid, shall be paid to any attorney at law or in fact or other agent, but shall be paid directly to the claimant entitled thereto unless otherwise ordered by the appeals board. No payment made to an attorney at law or in fact or other agent in violation of this section shall be credited to the employer.
compensation payment claimant direct payment attorney payment prohibition
Section § 4903
This section describes the types of liens that can be placed against workers' compensation payments. The appeals board is responsible for deciding which liens are allowed and their order of priority.
Liens can cover reasonable attorney's fees for legal services, costs related to medical and legal expenses for the injured employee, and living and burial expenses. They can also include support for the injured employee's family if the employee has abandoned them.
Liens may also be filed for compensated benefits like unemployment or temporary disability that require reimbursement if paid previously under the wrong category. Finally, indemnification from the California Victims of Crime Program can also be subject to these liens.
The appeals board may determine, and allow as liens against any sum to be paid as compensation, any amount determined as hereinafter set forth in subdivisions (a) through (i). If more than one lien is allowed, the appeals board may determine the priorities, if any, between the liens allowed. The liens that may be allowed hereunder are as follows:
(a)CA Labor Code § 4903(a) A reasonable attorney’s fee for legal services pertaining to any claim for compensation either before the appeals board or before any of the appellate courts, and the reasonable disbursements in connection therewith. No fee for legal services shall be awarded to any representative who is not an attorney, except with respect to those claims for compensation for which an
application, pursuant to Section 5501, has been filed with the appeals board on or before December 31, 1991, or for which a disclosure form, pursuant to Section 4906, has been sent to the employer, or insurer or third-party administrator, if either is known, on or before December 31, 1991.
(b)CA Labor Code § 4903(b) The reasonable expense incurred by or on behalf of the injured employee, as provided by Article 2 (commencing with Section 4600), and to the extent the employee is entitled to reimbursement under Section 4621, medical-legal expenses as provided by Article 2.5 (commencing with Section 4620) of Chapter 2 of Part 2, except those disputes subject to independent medical review or independent bill review.
(c)CA Labor Code § 4903(c) The reasonable value of the living expenses of an injured employee or of his or her dependents, subsequent to the injury.
(d)CA Labor Code § 4903(d) The reasonable burial expenses of the deceased employee, not to exceed the amount provided for by Section 4701.
(e)CA Labor Code § 4903(e) The reasonable living expenses of the spouse or minor children of the injured employee, or both, subsequent to the date of the injury, where the employee has deserted or is neglecting his or her family. These expenses shall be allowed in the proportion that the appeals board deems proper, under application of the spouse, guardian of the minor children, or the assignee, pursuant to subdivision (a) of Section 11477 of the Welfare and Institutions Code, of the spouse, a former spouse, or minor children. A collection received as a result of a lien against a workers’ compensation award imposed pursuant to this subdivision for payment of child support ordered by a court shall be credited as provided in Section 695.221 of the Code of Civil Procedure.
(f)CA Labor Code § 4903(f) The amount of unemployment compensation disability benefits that have been paid under or pursuant to the Unemployment Insurance Code in those cases where, pending a determination under this division there was uncertainty whether the benefits were payable under the Unemployment Insurance Code or payable hereunder; provided, however, that any lien under this subdivision shall be allowed and paid as provided in Section 4904.
(g)CA Labor Code § 4903(g) The amount of unemployment compensation benefits and extended duration benefits paid to the injured employee for the same day or days for which he or she receives, or is entitled to receive, temporary total disability indemnity payments under this division; provided, however, that any lien under this subdivision shall be allowed and paid as provided in Section 4904.
(h)CA Labor Code § 4903(h) The amount of family temporary disability insurance benefits that have
been paid to the injured employee pursuant to the Unemployment Insurance Code for the same day or days for which that employee receives, or is entitled to receive, temporary total disability indemnity payments under this division, provided, however, that any lien under this subdivision shall be allowed and paid as provided in Section 4904.
(i)CA Labor Code § 4903(i) The amount of indemnification granted by the California Victims of Crime Program pursuant to Article 1 (commencing with Section 13959) of Chapter 5 of Part 4 of Division 3 of Title 2 of the Government Code.
lien against workers' compensation attorney's fees lien medical expenses reimbursement
Section § 4903.1
This law deals with how workers' compensation claims are handled when there are liens or reimbursement claims from health care providers or insurance plans. If an injury at work is established, the appeals board needs to ensure that any medical or disability payments made by these entities are taken into account. They can either reimburse costs or issue liens against the employee’s recovery.
If a case is settled, and there are disagreements with lien amounts (except from health care providers), the recovery amount for the lien is proportionally reduced. Reimbursements aren't allowed if the provider knew or should have known the condition was work-related unless certain conditions apply, like emergencies or employer's refusal to treat.
The law also clarifies that changes made by recent legislation don't affect the rights of healthcare providers to file liens, the payer's right to review treatments, or any requirements to comply with other specific sections.
(a)CA Labor Code § 4903.1(a) The appeals board or arbitrator, before issuing an award or approval of any compromise of claim, shall determine, on the basis of liens filed with it pursuant to Section 4903.05, whether any benefits have been paid or services provided by a health care provider, a health care service plan, a group
disability policy, including a
loss-of-income policy or a self-insured employee welfare benefit plan, and its award or approval shall provide for reimbursement for benefits paid or services provided under these plans as follows:
(1)CA Labor Code § 4903.1(a)(1) If the appeals board issues an award finding that an injury or illness arises out of and in the course of employment, but denies the applicant reimbursement for self-procured medical costs solely
because of lack of notice to the applicant’s employer of his or her need for hospital, surgical, or medical care, the appeals board shall nevertheless award a lien against the employee’s recovery, to the extent of benefits paid or services provided, for the effects of the industrial injury or illness, by a health care provider, a health care service plan, a group disability policy or a self-insured employee welfare benefit plan, subject to the provisions described in subdivision (b).
(2)CA Labor Code § 4903.1(a)(2) If the appeals board issues an award finding that an injury or illness arises out of and in the course of employment, and makes an award for reimbursement for self-procured medical costs, the appeals board shall allow a lien, to the extent of benefits paid or services provided, for the effects of the industrial injury or illness, by a health care provider, a health care service plan, a group disability policy or a self-insured employee welfare benefit plan,
subject to the provisions of subdivision (b). For purposes of this paragraph, benefits paid or services provided by a self-insured employee welfare benefit plan shall be determined notwithstanding the official medical fee schedule adopted pursuant to Section 5307.1.
(3)Copy CA Labor Code § 4903.1(a)(3)
(A)Copy CA Labor Code § 4903.1(a)(3)(A) If the appeals board issues an award finding that an injury or illness arises out of and in the course of employment and makes an award for temporary disability indemnity, the appeals board shall allow
a lien as living expense under Section 4903, for benefits paid by a group disability policy providing
loss-of-time benefits and for loss-of-time benefits paid by a self-insured employee welfare benefit plan. The lien shall be allowed to the extent that benefits have been paid for the same day or days for which temporary disability indemnity is awarded and shall not exceed the award for temporary disability indemnity. A lien shall not be allowed hereunder unless the group disability policy or self-insured employee welfare benefit plan provides for reduction, exclusion, or coordination of
loss-of-time
benefits on account of workers’ compensation benefits.
(B)CA Labor Code § 4903.1(a)(3)(A)(B) For purposes of this paragraph, “self-insured employee welfare benefit plan” means any plan, fund, or program that is established or maintained by an employer or by an employee organization, or by both, to the extent that the plan, fund, or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, other than through the purchase of insurance, either of the following:
(i)CA Labor Code § 4903.1(a)(3)(A)(B)(i) Medical, surgical, or hospital care or benefits.
(ii)CA Labor Code § 4903.1(a)(3)(A)(B)(ii) Monetary or other benefits in the event of sickness, accident, disability, death, or unemployment.
(4)CA Labor Code § 4903.1(a)(4) If the parties propose that the case be disposed of by way of a compromise and release agreement, in the event the lien claimant, other than a health care provider, does not agree to the amount allocated to it, then the appeals board shall determine the potential recovery and reduce the amount of the lien in the ratio of the applicant’s recovery to the potential recovery in full satisfaction of its lien claim.
(b)CA Labor Code § 4903.1(b) Notwithstanding subdivision (a), payment or reimbursement shall not be allowed, whether payable by the employer or payable as a lien against the employee’s recovery, for any expense incurred as provided by Article 2 (commencing with Section 4600) of Chapter 2 of Part 2, nor shall the employee have any liability for the expense, if at the time the expense was incurred the provider either knew or in the exercise of reasonable diligence should have known that the condition being treated was caused by the employee’s present or prior employment, unless at the time the expense was incurred at least one of the following conditions was met:
(1)CA Labor Code § 4903.1(b)(1) The expense was incurred for services authorized by the employer.
(2)CA Labor Code § 4903.1(b)(2) The expense was incurred for services furnished while the employer failed or refused to furnish treatment as
required by subdivision (c) of Section 5402.
(3)CA Labor Code § 4903.1(b)(3) The expense was necessarily incurred for an emergency medical condition, as defined by subdivision (b) of Section 1317.1 of the Health and Safety Code.
(c)CA Labor Code § 4903.1(c) The changes made to this section by Senate Bill 457 of the 2011–12 Regular Session do not modify in any way the rights or obligations of the following:
(1)CA Labor Code § 4903.1(c)(1) Any health care provider to file and prosecute a lien pursuant to subdivision (b) of Section 4903.
(2)CA Labor Code § 4903.1(c)(2) A payer to conduct utilization review pursuant to Section 4610.
(3)CA Labor Code § 4903.1(c)(3) Any party in complying with the requirements under Section 4903.
workers' compensation lien claims medical reimbursement
Section § 4903.2
This law section explains when an applicant’s attorney may be awarded fees from a lien claimant’s recovery money. If a lien claimant, who has been reimbursed for benefits paid or services provided, did not participate in the hearings about their lien, and there were genuine disputes over the lien or related compensation issues, the appeals board can direct part of the lien's recovery to cover attorney fees. The fees must be related to the efforts the applicant's attorney made to recover the lien. Importantly, the ratio of attorney fees to the lien recovery cannot be higher than the fee ratio of the applicant's award. The lien claimant must have been notified about hearings and the possible attorney fee award.
Where a lien claimant is reimbursed pursuant to subdivision (f) or (g) of Section 4903 or Section 4903.1, for benefits paid or services provided, the appeals board may award an attorney’s fee to the applicant’s attorney out of the lien claimant’s recovery if the appeals board determines that all of the following occurred:
(a)CA Labor Code § 4903.2(a) The lien claimant received notice of all hearings following the filing of the lien and received notice of intent to award the applicant’s attorney a fee.
(b)CA Labor Code § 4903.2(b) An attorney or other representative of the lien claimant did not participate in the proceedings before the appeals board with respect to the lien claim.
(c)CA Labor Code § 4903.2(c) There were bona fide issues respecting compensability, or respecting allowability of the lien, such that the services of an attorney were reasonably required to effectuate recovery on the claim of lien and were instrumental in effecting the recovery.
(d)CA Labor Code § 4903.2(d) The case was not disposed of by compromise and release.
The amount of the attorney’s fee out of the lien claimant’s recovery shall be based on the extent of applicant’s attorney’s efforts on behalf of the lien claimant. The ratio of the amount of the attorney’s fee awarded against the lien claimant’s recovery to that recovery shall not exceed the ratio of the amount of the attorney’s fee awarded against the applicant’s award to that award.
lien claimant reimbursement attorney fee award appeals board
Section § 4903.3
The director in charge of the Uninsured Employers Fund can choose to provide injured workers with compensation and medical treatment before a formal award is issued, if they aren't already receiving these benefits.
Additionally, the appeals board will prioritize paying the director for these costs as the first claim against any compensation awarded to the injured party.
The director, as administrator of the Uninsured Employers Fund, may, in his discretion, provide compensation, including medical treatment, from the Uninsured Employers Fund in cases to which the director is a party before the issuance of any award, if such compensation is not being provided to the applicant.
The appeals board shall determine and allow as a first lien against any sum to be paid as compensation the amount of compensation, including the cost of medical treatment, provided by the director pursuant to this section.
Uninsured Employers Fund compensation medical treatment
Section § 4903.4
This law deals with resolving disputes about liens related to expenses for an injured employee. If there's a disagreement about these expenses, the appeals board can handle the issue separately. They might use binding arbitration if everyone involved agrees. This includes the employer, the person making the claim, and possibly the employee if they are still part of the dispute.
The law also states that these separate dispute hearings will be scheduled by the appeals board based on their available resources and judgment, without following another specific section's guidelines.
(a)CA Labor Code § 4903.4(a) If a dispute arises concerning a lien for expenses incurred by or on behalf of the injured employee as provided by Article 2 (commencing with Section 4600) of Chapter 2 of Part 2, the appeals board may resolve the dispute in a separate proceeding, which may include binding arbitration upon agreement of the employer, lien claimant, and the employee, if the employee remains a party to the dispute, according to the rules of practice and procedure.
(b)CA Labor Code § 4903.4(b) If the dispute is heard at a separate proceeding it shall be calendared for hearing or hearings as determined by the appeals board based upon the resources available to the appeals board and other considerations as the appeals board deems appropriate and shall not be subject
to Section 5501.5.
lien disputes injured employee expenses appeals board
Section § 4903.05
This law outlines how lien claimants can file liens related to workers' compensation cases. Liens must be filed with a form approved by the appeals board, including detailed documentation and proof of service to all relevant parties. For liens filed after January 1, 2017, the claim must include an original bill with supporting documents, and medical records only if relevant. Certain liens require electronic filing and a declaration under penalty of perjury regarding eligibility criteria, such as being a treating physician or providing emergency care.
For liens filed after January 1, 2013, a $150 filing fee is required, which must be paid electronically. If the lien doesn't comply with this requirement, it won't be valid. Multiple providers cannot merge claims into one lien, and improper liens can be dismissed without reimbursement of fees. Certain healthcare plans and publicly funded programs are exempt from the filing fee.
(a)CA Labor Code § 4903.05(a) Every lien claimant shall file its lien with the appeals board in writing upon a form approved by the appeals board. The lien shall be accompanied by a full statement or itemized voucher supporting the lien and justifying the right to reimbursement and proof of service upon the injured worker or, if deceased, upon the worker’s dependents, the employer, the insurer, and the respective attorneys or other agents of record. For liens filed on or after January 1, 2017, the lien shall also be accompanied by an original bill in addition to either the full statement or itemized voucher supporting the lien. Medical records shall be filed only if they are relevant to the issues being raised by the lien.
(b)CA Labor Code § 4903.05(b) Any lien claim for expenses under subdivision (b) of Section 4903 or for claims of costs shall be filed with the appeals board electronically using the form approved by the appeals board. The lien shall be accompanied by a proof of service and any other documents that may be required by the appeals board. The service requirements for Section 4603.2 are not modified by this section.
(c)Copy CA Labor Code § 4903.05(c)
(1)Copy CA Labor Code § 4903.05(c)(1) For liens filed on or after January 1, 2017, any lien claim for expenses under subdivision (b) of Section 4903 that is subject to a filing fee under this section shall be accompanied at the time of filing by a declaration stating, under penalty of perjury, that the dispute is not subject to an independent bill review
and independent medical review under Sections 4603.6 and 4610.5, respectively, that the lien claimant satisfies one of the following:
(A)CA Labor Code § 4903.05(c)(1)(A) Is the employee’s treating physician providing care through a medical provider network.
(B)CA Labor Code § 4903.05(c)(1)(B) Is the agreed medical evaluator or qualified medical evaluator.
(C)CA Labor Code § 4903.05(c)(1)(C) Has provided treatment authorized by the employer or claims administrator under Section 4610.
(D)CA Labor Code § 4903.05(c)(1)(D) Has made a diligent
search and determined that the employer does not have a medical provider network in place.
(E)CA Labor Code § 4903.05(c)(1)(E) Has documentation that medical treatment has been neglected or unreasonably refused to the employee as provided by Section 4600.
(F)CA Labor Code § 4903.05(c)(1)(F) Can show that the expense was incurred for an emergency medical condition, as defined by subdivision (b) of Section 1317.1 of the Health and Safety Code.
(G)CA Labor Code § 4903.05(c)(1)(G) Is a certified interpreter rendering services during a medical-legal examination, a copy service providing medical-legal services, or has an expense allowed
as a lien under rules adopted by the administrative director.
(2)CA Labor Code § 4903.05(c)(2) Lien claimants shall have until July 1, 2017, to file a declaration pursuant to paragraph (1) for any lien claim filed before January 1, 2017, for expenses pursuant to subdivision (b) of Section 4903 that is subject to a filing fee under this section.
(3)CA Labor Code § 4903.05(c)(3) The failure to file a signed declaration under this subdivision shall result in the dismissal of the lien with prejudice by operation of law. Filing of a false declaration shall be grounds for dismissal with prejudice after notice.
(d)CA Labor Code § 4903.05(d) All liens filed on or after January 1, 2013, for expenses under subdivision (b) of Section 4903 or for
claims of costs shall be subject to a filing fee as provided by this subdivision.
(1)CA Labor Code § 4903.05(d)(1) The lien claimant shall pay a filing fee of one hundred fifty dollars ($150) to the Division of Workers’ Compensation prior to filing a lien and shall include proof that the filing fee has been paid. The fee shall be collected through an electronic payment system that accepts major credit cards and any additional forms of electronic payment selected by the administrative director. If the administrative director contracts with a service provider for the processing of electronic payments, any processing fee shall be absorbed by the division and not added to the fee charged to the lien filer.
(2)CA Labor Code § 4903.05(d)(2) On or after January 1, 2013, a lien submitted for filing that does not comply with paragraph (1) shall be invalid, even if lodged with the appeals board, and shall not operate to preserve or extend any time
limit for filing of the lien.
(3)CA Labor Code § 4903.05(d)(3) The claims of two or more providers of goods or services shall not be merged into a single lien.
(4)CA Labor Code § 4903.05(d)(4) The filing fee shall be collected by the administrative director. All fees shall be deposited in the Workers’ Compensation Administration Revolving Fund and applied for the purposes of that fund.
(5)CA Labor Code § 4903.05(d)(5) The administrative director shall adopt reasonable rules and regulations governing the procedure for the collection of the filing fee, including emergency regulations as necessary to implement this section.
(6)CA Labor Code § 4903.05(d)(6) Any lien filed for goods or services that are not the proper subject of a lien may be dismissed upon request of a party by verified petition or on the appeals board’s own motion. If the lien is dismissed, the lien
claimant will not be entitled to reimbursement of the filing fee.
(7)CA Labor Code § 4903.05(d)(7) No filing fee shall be required for a lien filed by a health care service plan licensed pursuant to Section 1349 of the Health and Safety Code, a group disability insurer under a policy issued in this state pursuant to the provisions of Section 10270.5 of the Insurance Code, a self-insured employee welfare benefit plan, as defined in Section 10121 of the Insurance Code, that is issued in this state, a Taft-Hartley health and welfare fund, or a publicly funded program providing medical benefits on a nonindustrial basis.
workers' compensation liens lien filing requirements appeals board
Section § 4903.5
If someone wants to file a claim to receive payment for medical services given to an injured worker, they need to do this within specific time limits. Normally, such a claim can't be filed more than three years after the service was provided, or 18 months if the services were after July 1, 2013. However, certain health plans and insurers can file within 12 months of knowing it was a work injury but no more than five years after the services.
If the claim isn't filed in time, the injured worker doesn't have to pay. Also, until the main issues of the case are settled, a lien claimant usually can't push for a hearing. This law doesn't affect certain civil lawsuits related to unfair business practices or corruption.
(a)CA Labor Code § 4903.5(a) A lien claim for expenses as provided in subdivision (b) of Section 4903 shall not be filed after three years from the date the services were provided, nor more than 18 months after the date the services were provided, if the services were provided on or after July 1, 2013.
(b)CA Labor Code § 4903.5(b) Notwithstanding subdivision (a), any health care service plan licensed pursuant to Section 1349 of the Health and Safety Code, group disability insurer under a policy issued in this state pursuant to the provisions of Section 10270.5 of the Insurance Code, self-insured employee welfare benefit plan issued in this state as defined in Section 10121 of the Insurance Code, Taft-Hartley health and welfare fund, or publicly funded program providing
medical benefits on a nonindustrial basis, may file a lien claim for expenses as provided in subdivision (b) of Section 4903 within 12 months after the entity first knew or in the exercise of reasonable diligence should have known that an industrial injury is being claimed, but in no event later than five years from the date the services were provided to the employee.
(c)CA Labor Code § 4903.5(c) The injured worker shall not be liable for any underlying obligation if a lien claim has not been filed and served within the allowable period. Except when the lien claimant is the applicant as provided in Section 5501 or as otherwise permitted by rules of practice and procedure adopted by the appeals board, a lien claimant shall not file a declaration of readiness to proceed in any case until the case-in-chief has been resolved.
(d)CA Labor Code § 4903.5(d) This section shall not apply to civil actions brought under the Cartwright Act
(Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the federal Racketeer Influenced and Corrupt Organization Act (Chapter 96 (commencing with Section 1961) of Title 18 of the United States Code) based on concerted action with other insurers that are not parties to the case in which the lien or claim is filed.
lien claim time limits medical services claims industrial injury claims
Section § 4903.06
This law requires anyone who filed certain liens related to workers' compensation before January 1, 2013, to pay a $100 activation fee by January 1, 2014, unless they had already paid a filing fee earlier as required. The fee must be paid electronically, and proof of payment should be included when moving forward with a lien claim. If the fee isn't paid, the lien can be dismissed. However, specific groups like health care plans or disability insurers are exempt from this requirement.
(a)CA Labor Code § 4903.06(a) Any lien filed pursuant to subdivision (b) of Section 4903 prior to January 1, 2013, and any cost that was filed as a lien prior to January 1, 2013, shall be subject to a lien activation fee unless the lien claimant provides proof of having paid a filing fee as previously required by former Section 4903.05 as added by Chapter 639 of the Statutes of 2003.
(1)CA Labor Code § 4903.06(a)(1) The lien claimant shall pay a lien activation fee of one hundred dollars ($100) to the Division of Workers’ Compensation on or before January 1, 2014. The fee shall be collected through an electronic payment system that accepts major credit cards and any additional forms of electronic payment selected by the administrative director. If the administrative director contracts with a
service provider for the processing of electronic payments, any processing fee shall be absorbed by the division and not added to the fee charged to the lien filer.
(2)CA Labor Code § 4903.06(a)(2) The lien claimant shall include proof of payment of the filing fee or lien activation fee with the declaration of readiness to proceed.
(3)CA Labor Code § 4903.06(a)(3) The lien activation fee shall be collected by the administrative director. All fees shall be deposited in the Workers’ Compensation Administration Revolving Fund and applied for the purposes of that fund. The administrative director shall adopt reasonable rules and regulations governing the procedure for the collection of the lien activation fee and to implement this section, including emergency regulations, as necessary.
(4)CA Labor Code § 4903.06(a)(4) All lien claimants that did not file the declaration of readiness to proceed and that
remain a lien claimant of record at the time of a lien conference shall submit proof of payment of the activation fee at the lien conference. If the fee has not been paid or no proof of payment is available, the lien shall be dismissed with prejudice.
(5)CA Labor Code § 4903.06(a)(5) Any lien filed pursuant to subdivision (b) of Section 4903 prior to January 1, 2013, and any cost that was filed as a lien prior to January 1, 2013, for which the filing fee or lien activation fee has not been paid by January 1, 2014, is dismissed by operation of law.
(b)CA Labor Code § 4903.06(b) This section shall not apply to any lien filed by a health care service plan licensed pursuant to Section 1349 of the Health and Safety Code, a group disability insurer under a policy issued in this state pursuant to the provisions of Section 10270.5 of the Insurance Code, a self-insured employee welfare benefit plan, as defined in Section 10121 of the Insurance
Code, that is issued in this state, a Taft-Hartley health and welfare fund, or a publicly funded program providing medical benefits on a nonindustrial basis.
workers' compensation liens lien activation fee electronic payment system
Section § 4903.6
This law section outlines the rules for filing lien claims or applications related to workers' compensation cases in California. It indicates that such filings can't be made until specific conditions are met: 60 days must pass after a liability decision, and the payment period for medical treatment or legal expenses must have expired, with any disputes resolved. All lien claimants must notify involved parties about their legal representatives within five working days. No declaration to proceed can be filed until the main case is resolved, unless the applicant opts out. Except for physicians, lien claimants can't access an injured worker's medical info without approval from the appeals board, which will ensure compliance and may impose sanctions. The law doesn't apply to filings directly by the employee or employer.
(a)CA Labor Code § 4903.6(a) Except as necessary to meet the requirements of Section 4903.5, a lien claim or application for adjudication shall not be filed or served under subdivision (b) of Section 4903 until both of the following have occurred:
(1)CA Labor Code § 4903.6(a)(1) Sixty days have elapsed after the date of acceptance or rejection of liability for the claim, or expiration of the time provided for investigation of liability pursuant to subdivision (b) of Section 5402, whichever date is earlier.
(2)CA Labor Code § 4903.6(a)(2) Either of the following:
(A)CA Labor Code § 4903.6(a)(2)(A) The time provided for payment of medical treatment bills pursuant to Section 4603.2 has expired and, if the employer objected to the amount of the bill,
the reasonable fee has been determined pursuant to Section 4603.6, and, if authorization for the medical treatment has been disputed pursuant to Section 4610, the medical necessity of the medical treatment has been determined pursuant to Sections 4610.5 and 4610.6.
(B)CA Labor Code § 4903.6(a)(2)(B) The time provided for payment of medical-legal expenses pursuant to Section 4622 has expired and, if the employer objected to the amount of the bill, the reasonable fee has been determined pursuant to Section 4603.6.
(b)CA Labor Code § 4903.6(b) All lien claimants under Section 4903 shall notify the employer and the employer’s representative, if any, and the employee and the employee’s representative, if any, and the appeals board within five working days of obtaining, changing, or discharging representation by an attorney or nonattorney representative. The notice shall set forth the legal name, address, and telephone number of the attorney
or nonattorney representative.
(c)CA Labor Code § 4903.6(c) A declaration of readiness to proceed shall not be filed for a lien under subdivision (b) of Section 4903 until the underlying case has been resolved or where the applicant chooses not to proceed with the applicant’s case.
(d)CA Labor Code § 4903.6(d) With the exception of a lien for services provided by a physician as defined in Section 3209.3, a lien claimant shall not be entitled to any medical information, as defined in subdivision (i) of Section 56.05 of the Civil Code, about an injured worker without prior written approval of the appeals board. Any order authorizing disclosure of medical information to a lien claimant other than a physician shall specify the information to be provided to the lien claimant and include a finding that the information is relevant to the proof of the matter for which the information is sought. The appeals board shall adopt reasonable
regulations to ensure compliance with this section, and shall take any further steps as may be necessary to enforce the regulations, including, but not limited to, impositions of sanctions pursuant to Section 5813.
(e)CA Labor Code § 4903.6(e) The prohibitions of this section do not apply to lien claims, applications for adjudication, or declarations of readiness to proceed filed by or on behalf of the employee, or to the filings by or on behalf of the employer.
lien claims workers' compensation filing conditions
Section § 4903.07
This law states that someone who files a lien can get reimbursed for certain fees and interest from an employer if three conditions are met. First, the lien filer must have made a written demand for a specific settlement amount at least 30 days before filing the lien or a statement of readiness. Second, the employer must not accept the settlement offer in writing within 20 days. Third, a final judgment from a board or arbitrator must favor the lien filer with an award equal to or more than the demanded amount, not counting interest or fees. Also, this doesn't stop reimbursement through a mutually agreed settlement of the lien dispute.
(a)CA Labor Code § 4903.07(a) A lien claimant shall be entitled to an order or award for reimbursement from the employer of a lien filing fee or lien activation fee, together with interest at the rate allowed on civil judgments, only if all of the following conditions are satisfied:
(1)CA Labor Code § 4903.07(a)(1) Not less than 30 days before filing the lien for which the filing fee was paid or filing the declaration of readiness for which the lien activation fee was paid, the lien claimant has made written demand for settlement of the lien claim for a clearly stated sum which shall be inclusive of all claims of debt, interest, penalty, or other claims potentially recoverable on the lien.
(2)CA Labor Code § 4903.07(a)(2) The defendant
fails to accept the settlement demand in writing within 20 days of receipt of the demand for settlement, or within any additional time as may be provide by the written demand.
(3)CA Labor Code § 4903.07(a)(3) After submission of the lien dispute to the appeals board or an arbitrator, a final award is made in favor of the lien claimant of a specified sum that is equal to or greater than the amount of the settlement demand. The amount of the interest and filing fee or lien activation fee shall not be considered in determining whether the award is equal to or greater than the demand.
(b)CA Labor Code § 4903.07(b) This section shall not preclude an order or award of reimbursement of the filing fee or activation fee pursuant to the express terms of an agreed disposition of a lien dispute.
lien claimant order or award reimbursement
Section § 4903.8
This law explains how to handle liens related to workers' compensation in California. When a lien is filed for expenses, payment should only be made to the original person or entity entitled to it unless they have completely transferred their rights to another party and stopped doing business. Assignments of liens are heavily restricted if they occurred after January 1, 2013, with specific rules about when and how these assignments must be documented. If a lien is assigned multiple times, it may be investigated for bad behavior. Additionally, when filing a lien after January 1, 2013, there must be clear evidence that the services billed were actually provided to the injured employee. Any lien that doesn't meet these requirements is considered invalid.
(a)Copy CA Labor Code § 4903.8(a)
(1)Copy CA Labor Code § 4903.8(a)(1) Any order or award for payment of a lien filed pursuant to subdivision (b) of Section 4903 shall be made for payment only to the person who was entitled to payment for the expenses as provided in subdivision (b) of Section 4903 at the time the expenses were incurred, who is the lien owner, and not to an assignee unless the person has ceased doing business in the capacity held at the time the expenses were incurred and has assigned all right, title, and interest in the remaining accounts receivable to the assignee.
(2)CA Labor Code § 4903.8(a)(2) All liens filed pursuant to subdivision (b) of Section 4903 shall be filed in the name of the lien owner only, and no payment shall be made to any lien claimant without evidence that he or she is the owner of that
lien.
(3)CA Labor Code § 4903.8(a)(3) Paragraph (1) does not apply to an assignment that was completed prior to January 1, 2013, or that was required by a contract that became enforceable and irrevocable prior to January 1, 2013. This paragraph is declarative of existing law.
(4)CA Labor Code § 4903.8(a)(4) For liens filed after January 1, 2017, the lien shall not be assigned unless the person has ceased doing business in the capacity held at the time the expenses were incurred and has assigned all right, title, and interest in the remaining accounts receivable to the assignee. The assignment of a lien, in violation of this paragraph is invalid by operation of law.
(b)CA Labor Code § 4903.8(b) If there has been an assignment of a lien, either as an assignment of all right, title, and interest in the accounts receivable or as an assignment for collection, a true and correct copy of the assignment
shall be filed and served.
(1)CA Labor Code § 4903.8(b)(1) If the lien is filed on or after January 1, 2013, and the assignment occurs before the filing of the lien, the copy of the assignment shall be served at the time the lien is filed.
(2)CA Labor Code § 4903.8(b)(2) If the lien is filed on or after January 1, 2013, and the assignment occurs after the filing of the lien, the copy of the assignment shall be served within 20 days of the date of the assignment.
(3)CA Labor Code § 4903.8(b)(3) If the lien is filed before January 1, 2013, the copy of the assignment shall be served by January 1, 2014, or with the filing of a declaration of readiness or at the time of a lien hearing, whichever is earliest.
(c)CA Labor Code § 4903.8(c) If there has been more than one assignment of the same receivable or bill, the appeals board may set the matter for hearing on
whether the multiple assignments constitute bad-faith actions or tactics that are frivolous, harassing, or intended to cause unnecessary delay or expense. If so found by the appeals board, appropriate sanctions, including costs and attorney’s fees, may be awarded against the assignor, assignee, and their respective attorneys.
(d)CA Labor Code § 4903.8(d) At the time of filing of a lien on or after January 1, 2013, or in the case of a lien filed before January 1, 2013, at the earliest of the filing of a declaration of readiness, a lien hearing, or January 1, 2014, supporting documentation shall be filed including one or more declarations under penalty of perjury by a natural person or persons competent to testify to the facts stated, declaring both of the following:
(1)CA Labor Code § 4903.8(d)(1) The services or products described in the bill for services or products were actually provided to the injured employee.
(2)CA Labor Code § 4903.8(d)(2) The billing statement attached to the lien truly and accurately describes the services or products that were provided to the injured employee.
(e)CA Labor Code § 4903.8(e) A lien submitted for filing on or after January 1, 2013, for expenses provided in subdivision (b) of Section 4903, that does not comply with the requirements of this section shall be deemed to be invalid, whether or not accepted for filing by the appeals board, and shall not operate to preserve or extend any time limit for filing of the lien.
(f)CA Labor Code § 4903.8(f) This section shall take effect without regulatory action. The appeals board and the administrative director may promulgate regulations and forms for the implementation of this section.
workers' compensation liens lien assignment rules lien owner entitlement
Section § 4904
This section outlines the process for the Employment Development Department (EDD) to claim a lien for benefits paid, like unemployment or family temporary disability, against future disability compensation owed to an injured worker. It requires insurers or employers to notify the EDD when making disability payments and when filing claims with the appeals board. The appeals board is responsible for determining and approving the amount of the lien based on benefits paid out for the same disability days covered by the lien.
If there's a disagreement over the lien amount in a settlement, the appeals board will decide the fair repayment. The board's decision is binding and can require payments directly to the entitled party. However, the board can defer lien decisions if the involved parties agree.
Revisions to this law are meant to clarify existing rules without changing past decisions. Additionally, when benefits have been paid while an appeal is in process, the board will finalize the lien amount once a decision is reached.
(a)CA Labor Code § 4904(a) If notice is given in writing to the insurer, or to the employer if uninsured, setting forth the nature and extent of any claim that is allowable as a lien in favor of the Employment Development Department, the claim is a lien against any amount thereafter payable as temporary or permanent disability compensation, subject to the determination of the amount and approval of the lien by the appeals board. When the Employment Development Department has served an insurer or employer with a lien claim, the insurer or employer shall notify the Employment Development Department, in writing, as soon as possible, but in no event later than 15 working days after commencing disability indemnity payments. When a lien has been served on an insurer or an employer by the Employment Development
Department, the insurer or employer shall notify the Employment Development Department, in writing, within 10 working days of filing an application for adjudication, a stipulated award, or a compromise and release with the appeals board.
(b)Copy CA Labor Code § 4904(b)
(1)Copy CA Labor Code § 4904(b)(1) In determining the amount of lien to be allowed for unemployment compensation disability benefits under subdivision (f) of Section 4903, the appeals board shall allow the lien in the amount of benefits which it finds were paid for the same day or days of disability for which an award of compensation for any permanent disability indemnity resulting solely from the same injury or illness or temporary disability indemnity, or both, is made and for which the employer has not reimbursed the Employment Development Department pursuant to Section 2629.1 of the Unemployment Insurance Code.
(2)CA Labor Code § 4904(b)(2) In determining the amount of lien
to be allowed for unemployment compensation benefits and extended duration benefits under subdivision (g) of Section 4903, the appeals board shall allow the lien in the amount of benefits which it finds were paid for the same day or days for which an award of compensation for temporary total disability is made.
(3)CA Labor Code § 4904(b)(3) In determining the amount of lien to be allowed for family temporary disability insurance benefits under subdivision (h) of Section 4903, the appeals board shall allow the lien in the amount of benefits that it finds were paid for the same day or days for which an award of compensation for temporary total disability is made and for which the employer has not reimbursed the Employment Development Department pursuant to Section 2629.1 of the Unemployment Insurance Code.
(c)CA Labor Code § 4904(c) In the case of agreements for the compromise and release of a disputed claim for compensation, the
applicant and defendant may propose to the appeals board, as part of the compromise and release agreement, an amount out of the settlement to be paid to any lien claimant claiming under subdivision (f), (g), or (h) of Section 4903. If the lien claimant objects to the amount proposed for payment of its lien under a compromise and release settlement or stipulation, the appeals board shall determine the extent of the lien claimant’s entitlement to reimbursement on its lien and make and file findings on all facts involved in the controversy over this issue in accordance with Section 5313. The appeals board may approve a compromise and release agreement or stipulation which proposes the disallowance of a lien, in whole or in part, only where there is proof of service upon the lien claimant by the defendant, not less than 15 days prior to the appeals board action, of all medical and rehabilitation documents and a copy of the proposed compromise and release agreement or stipulation. The determination of the appeals
board, subject to petition for reconsideration and to the right of judicial review, as to the amount of lien allowed under subdivision (f), (g), or (h) of Section 4903, whether in connection with an award of compensation or the approval of a compromise and release agreement, shall be binding on the lien claimant, the applicant, and the defendant, insofar as the right to benefits paid under the Unemployment Insurance Code for which the lien was claimed. The appeals board may order the amount of any lien claim, as determined and allowed by it, to be paid directly to the person entitled, either in a lump sum or in installments.
(d)CA Labor Code § 4904(d) Where unemployment compensation disability benefits, including family temporary disability insurance benefits, have been paid pursuant to the Unemployment Insurance Code while reconsideration of an order, decision, or award is pending, or has been granted, the appeals board shall determine and allow a final amount on
the lien as of the date the board is ready to issue its decision denying a petition for reconsideration or affirming, rescinding, altering or amending the original findings, order, decision, or award.
(e)CA Labor Code § 4904(e) The appeals board shall not be prohibited from approving a compromise and release agreement on all other issues and deferring to subsequent proceedings the determination of a lien claimant’s entitlement to reimbursement if the defendant in any of these proceedings agrees to pay the amount subsequently determined to be due under the lien claim.
(f)CA Labor Code § 4904(f) The amendments made to this section by the act adding this subdivision are declaratory of existing law, and shall not constitute good cause to reopen, rescind, or amend any final order, decision, or award of the appeals board.
lien claim Employment Development Department temporary disability compensation
Section § 4904.1
This law states that paying off a lien (a legal claim or right against assets) doesn't delay the start of payments to an injured person. If it's already decided that the person should get payments for their disability, those payments should begin right away regardless of what's going on with the lien.
The payment of liens as provided in Section 4904, shall in no way affect the commencement of immediate payments on any balance of the award to the injured claimant where an installment payment for his disability has been determined.
lien payment injured claimant immediate payments
Section § 4905
This law section says that if a lien, which is a right to keep property due to unpaid debts, should be applied in a case before the appeals board, the board can order that payment be made directly to the right person, even if they didn't officially request it. This ensures the payment is treated like it had a properly requested lien. The award creates a lien on any unpaid compensation at the time the award is given.
Except with regard to liens as permitted by subdivision (b) of Section 4903, if it appears in any proceeding pending before the appeals board that a lien should be allowed if it had been duly requested by the party entitled thereto, the appeals board may, without any request for such lien having been made, order the payment of the claim to be made directly to the person entitled, in the same manner and with the same effect as though the lien had been regularly requested, and the award to such person shall constitute a lien against unpaid compensation due at the time of service of the award.
liens appeals board unpaid compensation
Section § 4906
This law outlines rules about legal fees and disclosures in workers' compensation cases. Attorneys can only charge reasonable fees determined by the appeals board, and they can't demand or accept fees from employees without approval. Any fee agreement must be sent to the appeals board within 10 days. When taking on a case, attorneys must provide a written disclosure form to the employee, detailing procedures, fee ranges, and rights, and it must be signed by both parties. The form should also include a disclaimer against making false statements for workers' compensation. Additionally, everyone involved must certify under penalty of perjury that they haven't engaged in illegal referrals or kickbacks. Any new attorney taking over a case must also complete these steps.
(a)CA Labor Code § 4906(a) A charge, claim, or agreement for the legal services or disbursements mentioned in subdivision (a) of Section 4903, or for the expense mentioned in subdivision (b) of Section 4903, is not enforceable, valid, or binding in excess of a reasonable amount. The appeals board may determine what constitutes a reasonable amount, but payment pursuant to subdivision (a) of Section 4903 or Section 5710 shall not be allowed for any services or expenses incurred prior to the filing of the disclosure form described in subdivision (e) with the appeals board and the sending of that form to the employer, or to the insurer or third-party administrator,
if either is known, by the attorney.
(b)CA Labor Code § 4906(b) An attorney or agent shall not demand or accept any fee from an employee or dependent of an employee for the purpose of representing the employee or dependent of an employee in any proceeding of the division, appeals board, or any appellate procedure related thereto until the amount of the fee has been approved or set by the appeals board.
(c)CA Labor Code § 4906(c) Any fee agreement shall be submitted to the appeals board for approval within 10 days after the agreement is made.
(d)CA Labor Code § 4906(d) In establishing a reasonable attorney’s fee, consideration shall be given to the responsibility assumed by the attorney, the care exercised in representing the applicant, the time involved, and the results obtained.
(e)CA Labor Code § 4906(e) At the initial consultation, an attorney shall furnish the employee a written disclosure form promulgated by the administrative director which shall clearly and prominently describe the procedures available to the injured employee or his or her dependents. The disclosure form shall describe this section, the range of attorney’s fees customarily approved by the appeals
board, and the attorney’s fees provisions of Section 4064 and the extent to which an employee may receive compensation without incurring attorney’s fees. The disclosure form shall include the telephone number of the administrative director together with the statement that the employee may receive answers at that number to questions concerning entitlement to compensation or the procedures to follow to receive compensation. A copy of the disclosure form shall be signed by the employee and the attorney and filed with the appeals board and sent to the employer, or insurer or third-party administrator, if either is known, by the attorney within 15 days of the employee’s and attorney’s execution thereof.
(f)CA Labor Code § 4906(f) The disclosure form set forth in subdivision (e) shall contain, prominently stated, the following statement:
“Any person who makes or causes to be made any knowingly false or fraudulent material statement or representation for the purpose of obtaining or denying workers’ compensation benefits or payments is guilty of a felony.”
(g)Copy CA Labor Code § 4906(g)
(1)Copy CA Labor Code § 4906(g)(1) The disclosure form described in subdivision (e) shall also contain a paragraph setting forth the exact location of the district office of the appeals board at which the employee’s case will be filed. This paragraph shall also contain, prominently displayed, the following statement:
“The employee has been advised of the district office at which his or her case will be filed and that he or she may be required to
attend conferences or hearings at this location at his or her own expense.”
(2)CA Labor Code § 4906(2) The disclosure form may not be signed by the employee until he or she has been advised of the location at which his or her case will be filed, has met with or personally spoken with an attorney licensed by the State Bar of California who is regularly employed by the firm by which the employee will be represented, and has been advised of his or her rights as set forth in subdivision (e) and the provisions of paragraph (1). The name of this individual shall be clearly and legibly set forth on the disclosure form.
(3)CA Labor Code § 4906(3) The disclosure form shall include the actual date the disclosure form was signed by both the employee and the attorney and shall be signed under
penalty of perjury by the attorney representing the employee, or an attorney licensed by the State Bar of California who is regularly employed by his or her firm. A copy of the disclosure form containing all of the required information shall be given to the employee when he or she signs the disclosure form.
(h)CA Labor Code § 4906(h) In addition to the disclosure form, the employee, the insurer, the employer, and the attorneys for each party shall sign under penalty of perjury and file with the board a statement, with the complete application or answer, and in addition to the disclosure required pursuant to subdivision (g), that they have not violated Section 139.3 and that they have not offered, delivered, received, or accepted any rebate, refund, commission,
preference, patronage dividend, discount, or other consideration, whether in the form of money or otherwise, as compensation or inducement for any referred examination or evaluation.
(i)CA Labor Code § 4906(i) An attorney who subsequently assumes the representation of the employee in the same action or proceeding shall complete a disclosure form that meets all of the requirements of this section and the statement required by subdivision (h). Both the form and the statement shall be signed under penalty of perjury by the attorney or an attorney licensed by the State Bar of California who is regularly employed by his or her firm. Both the disclosure form and the statement shall be filed with the appeals board and sent to the employer, or insurer or third-party administrator, if either is known, by the attorney within 15 days of the employee’s and attorney’s
execution of the form and statement. Payment pursuant to subdivision (a) of Section 4903 or Section 5710 shall not be allowed for any services or expenses incurred prior to the filing of the disclosure form described in subdivision (e) with the appeals board and the sending of that form to the employer, or to the insurer or third-party administrator, if either is known, by the attorney.
workers' compensation attorney fees appeals board
Section § 4907
This law states that non-attorneys who represent parties before the Workers' Compensation Appeals Board or its judges can lose their ability to represent if they break any related rules or for other valid reasons. These reasons could include not paying costs or fees ordered by the board. Non-attorney representatives are expected to follow the same professional standards as lawyers.
(a)CA Labor Code § 4907(a) The privilege of any person, except attorneys admitted to practice in the Supreme Court of the state, to appear in any proceeding as a representative of any party before the appeals board, or any of its workers’ compensation administrative law judges, may, after a hearing, be removed, denied, or suspended by the appeals board for either of the following:
(1)CA Labor Code § 4907(a)(1) For a violation of this chapter, the Rules of the Workers’ Compensation Appeals Board, or the Rules of the Administrative Director.
(2)CA Labor Code § 4907(a)(2) For other good cause, including, but not limited to, failure to pay final order of sanctions, attorney’s fees, or costs issued under Section 5813.
(b)CA Labor Code § 4907(b) For purposes of this section, nonattorney representatives shall be held to the same professional standards of conduct as attorneys.
workers' compensation appeals board representation non-attorney representatives
Section § 4908
If an employee gets injured or dies on the job, the claim for compensation they are entitled to is prioritized above most other debts their employer, or their employer's estate, might owe. This is similar to how wage claims are treated. The full amount they’re owed will be favored for payment. Importantly, if there was already a claim or award in place, this new rule doesn't take away from those existing claims.
A claim for compensation for the injury or death of any employee, or any award or judgment entered thereon, has the same preference over the other debts of the employer, or his estate and of the insurer which is given by the law to claims for wages. Such preference is for the entire amount of the compensation to be paid. This section shall not impair the lien of any previous award.
employee injury compensation death compensation claim employer debt priority
Section § 4909
This section explains that if an injured employee or their dependents receive any payments or benefits during the employee's incapacity (or after their death), it doesn't automatically mean the employer admits they owe compensation unless an agreement says otherwise. Such payments can be considered by the appeals board when deciding the compensation amount. Accepting these payments doesn’t mean the employee or their dependents give up any rights to claim more compensation from the employer.
Any payment, allowance, or benefit received by the injured employee during the period of his incapacity, or by his dependents in the event of his death, which by the terms of this division was not then due and payable or when there is any dispute or question concerning the right to compensation, shall not, in the absence of any agreement, be an admission of liability for compensation on the part of the employer, but any such payment, allowance, or benefit may be taken into account by the appeals board in fixing the amount of the compensation to be paid. The acceptance of any such payment, allowance, or benefit shall not operate as a waiver of any right or claim which the employee or his dependents has against the employer.
injured employee benefits incapacity payments employer liability
Section § 4909.1
This law states that representatives from the Department of Corrections and the Department of the Youth Authority can ask the State Compensation Insurance Fund to provide payments or benefits. These benefits are outlined in another law (Section 4909). If requested, the Fund must handle these benefits quickly and efficiently.
Authorized representatives of the Department of Corrections, and the Department of the Youth Authority may request the State Compensation Insurance Fund to provide any payment, allowance, or benefit as described in Section 4909. When requested by an authorized representative, the State Compensation Insurance Fund shall administer the benefits in a timely fashion.
Department of Corrections Department of the Youth Authority State Compensation Insurance Fund
