California has passed several laws regarding COVID-19 since September, all of which will be effective by January 1, 2021. This article examines Senate Bill (SB) 1159. 

Senate Bill (SB) 1159

Technically SB 1159 isn’t new, because it went into effect in September 2020. As part of Allevity’s New Laws for 2021 series, however, we feel the need to cover this important yet less-discussed legislation that is not only retroactive to a certain extent but also in effect through 2022. 

The Rebuttable Workers’ Compensation Presumption 

SB 1159 establishes a rebuttable workers’ compensation presumption for persons infected with COVID-19. The legislation presumes individuals contracting COVID-19 while working outside their homes did so while working, thus making their infections coverable via workers’ compensation. As the word “rebuttable” implies, however, this presumption isn’t absolute.  

The bill codifies the governor’s order extending full workers’ compensation benefits to all employees contracting the virus within 14 days of working outside the home at the employer’s direction during the initial California stay-at-home order (March 19–July 5, 2020). Full workers’ compensation benefits include hospital, surgical, and medical treatment, disability indemnity, and death benefits.  

Picking up where the executive order left off, on July 6, 2020, SB 1159 establishes the rebuttable presumption for first responders and health care personnel, including nurses, EMTs, firefighters, peace officers, health facility employees providing direct patient care, and in-home care providers. The same 14-day rule applies—and employers have 30 days to reject the claim. 

Finally, the presumption applies when employers with five or more employees experience an “outbreak.” Once again, the first day the bill applies is July 6th, 2020, and the 14-day rule applies. The “outbreak” rules give employers 45 days to reject the claim. 

Under the terms of SB 1159, an “outbreak” is described as any of the following conditions, per CalChamber’s HR Watchdog:  

• “If the employer has 100 employees or fewer at a specific place of employment, four employees test positive for COVID-19 within 14 calendar days. 
• If the employer has more than 100 employees at a specific place of employment, 4 percent of the number of employees test positive within 14 calendar days. 
• Public authorities order the place of employment closed due to a risk of COVID-19 infection.” 

Reporting Requirements 

Employers with five or more employees are required to report COVID-19 cases to workers’ compensation carriers whether or not the infection could have been contracted at work. 

Within three days of reasonably knowing an employee has tested positive, the employer must inform their workers’ compensation carrier that an employee has tested positive on an explicit date, the address of the employee’s worksite, and the highest number of employees reporting to the same worksite within 45 days of the infected employee’s last day worked. 

Employers aware of employees testing positive between July 6–September 16, 2020 must report the information within 30 days. 

This blog is not to be considered as legal advice. If you are unsure about any workers’ compensation decisions, you should consult with your legal counsel and workers’ compensation administrators on how to best implement these procedures within your company.

We will continue to stay informed and tuned in to any other legislation affecting employers. We are here to help!