California|

As California moves into a wider reopening, many counties are witnessing an increase in new cases COVID-19. Public health officials are tracing many of these new cases back to birthday parties, family gatherings, religious services and other forms of social contact. 

Although California’s reopening strategy emphasizes workplaces, it’s clear that personal social activity poses an equal or greater risk for transmission of the virus. As more social venues open and attitudes and behaviors drift back toward the pre-pandemic, these risks will increase.

Given these facts, is it wise or fair to “presume” new cases of COVID-19 were acquired through work and put them on a fast-track for workers’ compensation benefits?

Common sense would suggest “no.” But that is current public policy in California, under an executive order issued by Gov. Gavin Newsom in early May. State lawmakers are now considering expanding this policy beyond the end of the order, which is set to expire July 5.

Continuing or expanding this policy would be costly and harmful for employers who are trying to rebound and resume some form of operations. Businesses are struggling to survive, save jobs and be part of California’s economic recovery. Higher costs put that recovery in jeopardy.

A workers’ compensation “presumption” flips the typical workers’ compensation process. Normally, a worker who is filing a claim must provide some evidence of a work connection. After all, workers’ compensation is supposed to provide medical treatment and payments for work-caused injuries and illness.

The governor’s order declares that any worker who is diagnosed with COVID-19 should have their claim accepted automatically. No evidence of a work-connection is required.

It’s a dramatic move that hangs new liability and billions in new costs on California employers. Now, instead of being responsible for health and safety at the workplace, employers are now required to pay for cases of COVID-19 their workers may have picked up during personal time, while socializing or other, non-work activities.

Under the “rebuttable presumption” in the governor’s order, employers do maintain some ability to challenge the claim, but only if they can prove that the illness was caught elsewhere. A very difficult thing to do.

Some lawmakers have proposed instituting a “conclusive presumption,” which means employers will pay for the COVID-19 illness no matter where it came from, even if they have factual evidence that it wasn’t related to work. This will force workers’ compensation to act more like universal healthcare — and our costs will skyrocket.

Employers have struggled and stretched through this pandemic. They have done all we can to keep workers healthy and only operate within allowed safety guidelines. Even though it hasn’t been “business as usual,” we have made every effort to pay our workers, preserve their jobs and continue paying for their health and other benefits.

As we reboot our operations, workers’ compensation should be there to protect workers who get COVID-19 because of their job. But it should not be an insurance policy that covers birthday parties, church services and backyard BBQs in the weeks and months ahead. 

Gary Cushing is the president and CEO of the Camarillo Chamber of Commerce.

This piece was originally published in the VC Star. To view the original piece, click here.

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