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Worker Groups Sharply Criticize Veto Of Penalty Bill
By Steve Lawrence, Associated Press Writer - October 3, 2005

SACRAMENTO (AP) _ A group representing injured workers criticized Gov. Arnold Schwarzenegger on Friday for vetoing a bill that would fine employers up to $5,000 for ignoring orders to provide benefits in workers' compensation cases.

Schwarzenegger, in announcing the veto Thursday, said current penalties were adequate and contended the bill was an attempt by workers' attorneys to "fill their coffers at the expense of the entire workers' compensation system."

But the bill's supporters said current penalties, which can range up to $400,000 for employers or their insurers who show a pattern of unfairly denying benefits to injured workers, aren't preventing employers from ignoring orders of the Workers' Compensation Appeals Board.

"We would not have put this bill out there if there was not a problem with insurance carriers ignoring final orders," said Mark Hayes, president of Voters Injured at Work, the group that proposed the bill. "Why should someone have to go back to court to get it enforced?"

The bill, by Sen. Joe Dunn, D-Garden Grove, would require a $2,000 penalty if an injured worker was forced to go back to the appeals board to force an employer or insurer to provide a previously ordered benefit.

A subsequent violation could result in a $5,000 penalty.

The bill would give employers and insurers 10 days to comply with a final board order or face the possibility of being hit with additional penalties.

The state operates a separate court system to handle disputes involving work-related injuries, with the board ruling on appeals of decisions by administrative law judges. Decisions by the appeals board can be appealed again to state courts.

Hayes said the bill's supporters decided to seek only "extremely small" additional penalties to ensure the measure would make it through the Legislature.

Those penalties would go to the injured workers instead of the state, he said.

The bill's opponents groups representing employers and insurers  told lawmakers that the legislation could lead to "contrived litigation" by workers' attorneys.

Hayes said that wasn't the case.

"If the original order is upheld there's no further litigation," Hayes said. "There's no way attorneys are trying to fill their coffers on a lousy $2,000 fine."

Voters Injured at Work was formed in January with financial help from workers' attorneys in response to a series of sweeping changes in workers' compensation law that critics say have harmed injured workers. The group claims about 2,000 members.

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