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A loophole in the California workers comp law allows athletes who permanently reside in any other state to file claims within California, claiming the same benefits as blue-collar workers in the state.
Media reports have outlined numerous six-figure payouts to out-of-state athletes. In order to qualify, most of the athletes have played as little as one or two games, or in some cases just one inning in California.
The loophole allows athletes to file claims for “cumulative trauma” or non-specific injuries in California, then file the same or a similar claim in their home state. As of August 8, 4,500 claims have been filed resulting in $747 million in payouts, with another 5,000 cases pending.
Assemblyman Henry T. Perea trying to get AB 1309 passed to close this loophole. It simply adds a common-sense jurisdictional standard governing when athletes are allowed to claim benefits in the state of California.
Opponents of the bill argue that the team employers carry the bill for workers’ compensation, so it should not matter that California has become a hub for billions of dollars in out-of-state claims. This neglects the impact this loophole has on workers’ compensation for all employers in the state.
As more of these six-figure claims are filed, insurers will feel the pressure to raise workers’ compensation rates on all employers to cover the costs.
If you injured on the job and do not know what workers’ compensation benefits you may qualify for call our law firm, there is more information on workers’ comp on our site. Call our offices today at (614) 221-7548 for a free consultation.
Larrimer & Larrimer, LLC – Columbus workers comp lawyers