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California bills would limit benefits for workers with prior disabilities - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers California bills would limit benefits for workers with prior disabilities by Work Comp Central Workers Comp Coverage , Workplace Safety Jul 1, 2026 California Gov. Gavin Newsom’s administration added a grandfather clause to two similar bills introduced Friday that would change a state fund providing additional benefits to injured workers who already had a disability before suffering a later job-related injury. The budget trailer bills, A.B. 171 and S.B. 171, would exempt some pending and active claims from the stricter eligibility requirements. Claims filed before July 1, 2020, and certain cases that had already been set for trial or were otherwise procedurally advanced by June 1 would be grandfathered in. Claims that had not reached that stage would be subject to the new standards. The proposal would make it harder for workers to qualify by narrowing what counts as a preexisting disability. To support a claim, the prior condition would have to have caused a loss of earnings or interfered with the worker’s ability to do the job. A medical evaluator would have to document the condition and its effect in a medical-legal report based on evidence that existed before the later injury. A.B. 171 and S.B. 171 would also change how prior disabilities are calculated, requiring ratings for multiple body parts to be combined rather than added together. They would also create filing deadlines, requiring claims to be filed within five years of the later injury or within six months after the worker’s permanent disability is resolved in the later injury claim, whichever is later. The bills would bar workers whose later injuries result in 100% permanent total disability from receiving benefits from the fund. They would also prevent workers already receiving benefits based on a 100% combined disability from seeking additional benefits. The budget measures also include provisions extending the Workers’ Compensation Appeals Board’s deadline to act on petitions for reconsideration, requiring assessments to be paid electronically, imposing a 10% penalty for late or partial payments, and allowing the governor’s office and state human resources officials to set the salary for the Division of Workers’ Compensation administrative director. Budget committees in both chambers held hearings on A.B. 171 and S.B. 171 on Monday. WorkCompCentral is a sister publication of Business Insurance. More stories here . 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