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The Division of Workers’ Compensation (DWC) tomorrow will dismiss more than 292,000 unresolved liens by operation of law. The liens belong to claimants who did not properly file the required Supplemental Lien form and 4903.05(c) Declaration form. 

Senate Bill 1160, which became effective January 1, required all lien claimants who filed a lien between January 1, 2013 and December 31, 2016, and paid a filing fee, to file the forms by July 1st. Lien claimants who failed to file the forms as required will have their liens dismissed.

Labor Code section 4903.05(c) was amended as part of the bill’s reform measures to combat fraud in the workers' compensation system. It requires that any lien claimant be the claimant’s treating physician; the Agreed Medical Examiner (AME) or Qualified Medical Examiner (QME); had provided treatment authorized by the employer or claims administrator; has after a diligent search determined the employer does not have a medical provider network in place; has documentation that shows medical treatment was neglected or unreasonably refused to the claimant-patient; can show the expense was for medical emergency treatment; is a certified interpreter rendering services during a medical legal examination, a copy service providing medical-legal service, or has an expense allowed as a lien under rules adopted by the medical director.

Allowable liens are now strictly confined to these types, conditions, and situations. 

To comply with SB 1160’s requirements, DWC made available an e-form declaration and the Workers’ Compensation Appeals Board promulgated regulations requiring the use of this form.

Lien claimants should be aware that DWC will not send notification to claimants whose liens have been dismissed. DWC has posted frequently asked questions on the supplemental lien form online.

by journalist Lonce LaMon, lonce@adjustercom.com; written with news release from Newsline, the California DIR's news release of August 14th 2017