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AB 2378 Assembly Bill-Bill Analysis Page 2 of 5 disability, and is actually receiving disability pension payment. This leave of absence is set forth in Labor Code Section 4850 and is sometimes referred to as "4850 leave". (Labor Code §4850) Existing law provides similar leaves of absence for similarly situated peace officers, such as Department of Justice peace officers, California Highway Patrol officers, and University of California peace officers and firefighters. (Labor Code §§4800-4820) Existina law provides for the payment of indemnity benefits if the occupational injury causes temporary or permanent disability which prevents the worker from returning to his or her job. In the case of temporary disability payments, the benefit is two-thirds of the weekly loss in wages due to disability for up to 104 weeks within 5 years (Labor Code §§4650, 4653, 4654 and 4656) . Under federal tax law both temporary disability benefits and "4850 leave" are exempt from taxation. This bill would specify that paid leaves of absences for peace officers and firefighters discussed above are in addition to the 104 weeks of temporary disability benefits. This bill would also declare the intent of the legislature to abrogate the holding in County of Alameda v. Workers' Compensation Appeals Board (Knittel) (2013) 213 Cal.App.4th 278. Hearing Date: June 25, 2014 AB 2378 Consultant: Gideon L. Baum Page 2 Senate Committee on Labor and Industrial Relations This )till would further find and declare that the Court of Appeal issued a decision in 2013 that wrongly interprets existing law, and AB 338, with the consequence of wrongfully denying these fire and peace officer employees the full benefits that the statues intended to provide to them. COMMENTS 1. Need for this bill? AB 2378 directly addresses a recent appellate court decision, Alameda v. Workers' Compensation Appeals Board (Knittel) (2013) 213 Cal.App.4th 278. This decision found that "4850 leave" counted towards a year of leave as per temporary disability, which is capped at two years. The end result of this court decision is that peace officers and firefighters would receive two years of benefits like all other injured workers, with the first year being full salary replacement under "4850 leave". This interpretation hinged on two phrases, one found in Labor Code Section 4656 and the other found in Labor Code Section 4850. Specifically, Labor Code Section 4850(a) reads: (a) Whenever any person listed in subdivision (b) [specified peace officers and firefighters)? is disabled? by injury or illness arising out of and in the course of his or her duties, he or she shall become entitled? to a leave of absence while so disabled without loss of salary in lieu of temporary disability payments or maintenance allowance payments, if any, hup://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_235I-2400/ab_2378_cfa_20140624_092208_sen_comm.html 76/2014