HomeMy WebLinkAbout91-104 - Workers' Compensation ReformRESOLUTION NO. 91-104
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH SUPPORTING WORKERS'
COMPENSATION REFORM FOR STRESS- RELATED
INJURIES
WHEREAS, the costs to employers arising from workers'
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compensation claims has skyrocketed
in recent years
with
litigation
dominating the determination of
the existence
and
extent of
disability; and
WHEREAS, the State budget to fund the administration of
California's Workers' Compensation Program is approximately 80
million dollars for FY 1991 -92, with employer assessments
accounting for twenty percent (20 %); and
WHEREAS, mental disorders caused by job stress are the leading
occupational diseases in California; and
WHEREAS, proof of a psychiatric injury requires that an
employee show, by a preponderance of evidence, that at least ten
percent (10 %) of the cause of the stress or tension results from
actual events of employment; and
WHEREAS, by their subjective nature, stress - caused injuries
are difficult to quantify, and it is the employee's perception of
circumstances in the workplace that determines how much stress is
felt; and
WHEREAS, recent attempts by the State Legislature failed to
increase the causation standard to fifty percent (50 %) and impose
a greater burden of proof on the injured employee; and
WHEREAS, establishing that the employer's liability for such
stress claims shall not exceed the proportion of the employee's
stress injury that is administratively attributed to the employer
would avoid unfairness to employers and provide a more rational and
equitable sharing of responsibility for stress injuries.
. NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of Newport Beach supports workers' compensation reform to
establish either a higher threshold for compensability for
psychiatric injuries or a proportionate exposure formula and urges
the League of California Cities and individual cities to join in a
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coordinated, cooperative effort to effect such workers'
compensation reform.
ADOPTED, this 28th day of October , 1991
ATTEST:
i
MAYOR
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9r /resol /uorkemp.res