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California tightens eligibility for subsequent injury benefits fund - 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 tightens eligibility for subsequent injury benefits fund by Louise Esola California Gov. Gavin Newsom./REUTERS Workers Comp Coverage , Workplace Safety Jul 16, 2026 California Gov. Gavin Newsom signed legislation Monday that tightens eligibility and evidentiary requirements for additional benefits paid to workers with preexisting disabilities who suffer subsequent compensable workplace injuries. S.B. 171 revises requirements governing the state’s Subsequent Injuries Benefits Trust Fund, including a requirement for workers to show that a preexisting disability was “labor disabling” when the subsequent injury occurred. The legislation states that a preexisting condition generally will not qualify if medication or a medical device allowed the employee to work without incapacity. It also requires the existence and workplace effect of the prior disability to be supported by substantial evidence, including medical records, testimony or other evidence that existed before the subsequent injury. The law bars workers from establishing a preexisting disability through retroactive preventive work restrictions and generally limits medical-legal evidence to evaluations obtained during the underlying workers compensation claim. Workers must file a trust fund claim within five years of the subsequent workplace injury or within six months after resolution of permanent disability in the underlying claim, whichever is later. The changes generally apply to claims that have not reached a final determination. Exceptions apply to certain claims that were filed by July 1, 2020, or had reached specified pretrial stages by June 1, 2026. Those exceptions will remain operative until July 1, 2031. The law also requires employers and insurers to pay workers compensation surcharges and assessments electronically. Late, incomplete or nonelectronic payments are subject to a 10% penalty, although the Department of Industrial Relations may waive or reduce penalties under specified circumstances. S.B. 171 also makes permanent a provision under which a Workers’ Compensation Appeals Board reconsideration petition is deemed denied unless acted upon within 60 days after a trial judge transmits the case to the board. Related News The Hanover’s Roche to retire, Lavey to succeed as CEO July 16, 2026 Iran ‘urging’ Yemen’s Houthis to close Red Sea gateway July 16, 2026 First-half insured cat losses down nearly 50%: Gallagher Re July 16, 2026 Data leak raises safety risks at India’s largest nuclear plant July 16, 2026 Toxic acid spill shuts Antwerp-Bruges terminals July 16, 2026 Storms cause more than $700M in insured losses July 16, 2026 Wildfire halts Paris rail and motorway travel July 16, 2026 Nepal’s first cat bond targets up to $190M July 16, 2026 ICICI Lombard’s profits halve in Q2 July 16, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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