How to Effectively Work with the WCAB,
Insurance Companies and Attorneys
To Collect From
Workers’ Compensation Benefits

YOUR PRESENTERS
Angela Bott , Humboldt County DCSS
Child Support Specialist III
Alix Haik-Bruno , Sacramento County DCSS
Child Support Officer III
Steven Pesante , San Bernardino County DCSS
Child Support Attorney IV

GOALS OF THIS PRESENTATION
-- Give you a BASIC OVERVIEW of the Workers’
Compensation System
-- Show where LCSAs INTERACT with the Workers’
Compensation System
-- Discuss STRATEGIES on how to effectively collect child support from WCAB benefits and liens
-- Tell you WHAT TO DO if something goes wrong with resolving your child support lien

Workers’ Compensation : Underused and Underestimated
Least used enforcement action.
■ Very profitable if applied effectively.
Can affect both FPM3 and FPM4.
■ Depends on the case and the life of the claim.
■ Professional knowledge and continuous education by LCSA staff members is needed.

MAJOR THEME TO REMEMBER

WCAB GUIDE
Released on June 5, 2014, it’s a comprehensive written
WCAB handbook available to print-out and take with you to hearings. Compilation of best practices by LCSAs and
DCSS.
The most updated version of this document can be found at California Central
________________________________
Review and understand the Glossary of terms contained within it

LIFE CYCLE OF A WORKERS’ COMPENSATION CASE
Return to work
Injury
Medical
Treatment
Unable to return
Total
Temporary
Disability
(TTD)
Permanent
Disability
(PD)
Settlement
CCP 704.160
Not charged against settlement
Charged against settlement
LC 4903(e)

OVERVIEW OF THE WCAB SYSTEM
The Workers’ Compensation system is an Administrative Law
System which provides medical treatment and compensation for employees injured while working “on the job”
Many observers say it favors workers at the expense of employers.
It is an excellent source of periodic and lump-sum payments of child support to LCSAs.

OVERVIEW OF THE WCAB SYSTEM
Understand what you are dealing with here . . .
The applicant’s attorneys only receive 15% of the settlement as their fee, so actions are quickly handled, on a “quantity” basis.
When liens are settled, you must make it easy to get paid. Telephone calls are usually made by litigants just once, on the day of the hearing or trial, so someone must be available to discuss your lien!

OVERVIEW OF THE WCAB SYSTEM
A worker is injured while working.
It must have a “nexus” to the job to be compensable.
The worker usually finds an attorney and files an
“Application for Adjudication”. 15% of settlement is their fee.
If such a “nexus exists”, the claim is usually “accepted” and the workers is sent for medical treatment.

OVERVIEW OF THE WCAB SYSTEM
If the nexus does not exist, the claim will be “denied”.
Sometimes claims are settled for “nuisance” value.
Once the Claim for Adjudication is opened, the State Department of Workers’ Compensation sends a list of new claims to the State
DCSS. A “Match-up” occurs
The LCSA with participant managing responsibility (PMR) then gets a list of tasks for obligors with open claims from the
State DWC.

OVERVIEW OF THE WCAB SYSTEM
LCSA IMPACT POINT - # 1
Once the LCSA finds out there is a claim open, it takes two significant, yet separate steps:
1. Issues an IWO to the employer’s insurer
[to collect from TDD benefits being paid – NOW ]
2. Files a child support lien
[to collect from the settlement – LATER ]

OVERVIEW OF THE WCAB SYSTEM
LCSA IMPACT POINT #2
Settling the child support lien when the case resolves at the end of the WCAB action. . .
. . . But that comes a lot later, so stay tuned.

OVERVIEW OF THE WCAB SYSTEM
The LCSA is authorized by California State Law to deduct
25% of Temporary Disability benefits payments to pay child support
Code of Civil Procedure Section 704.160
These deducted payments are NOT charged as advances against the eventual settlement

OVERVIEW OF THE WCAB SYSTEM
The injured worker continues to receive medical treatment from his or her medical provider, and continues to receive Temporary Disability Benefits, and
DCSS continues taking child support from TD benefits payments until . . .
He or she is declared by the medical provider to be:
“PERMANENT AND STATIONARY”
This means the worker is stabilized and is going to be returned to their prior health as much as possible.

OVERVIEW OF THE WCAB SYSTEM

DIFFERENCES BETWEEN TTD AND PD
Total Temporary Disability (TTD):
• Intended to replace lost wages
• Max of 104 weeks of TTD benefits if injury occurred after April 19, 2004 [ Labor Code Section 4656 (c) (1)]
• Based on the employees last earnings
• We can issue W/C IWO for up to 25% of the benefit
( Code of Civil Procedure Section 704.160
)
• You do not have to be WCAB lien eligible to issue a W/C
IWO

DIFFERENCES BETWEEN TTD AND PD
Permanent Disability (PD):
• Issued once TTD runs out or injured worker is “P&S” or has reached “MMI”
• P&S: Permanent and Stationary
• MMI: Maximum Medical Improvement
• Not automatically garnishable. An order from a WCAB judge must authorize us to take a percentage of the benefit amount.

OVERVIEW OF THE WCAB SYSTEM
#1
The injured worker no longer receives TD benefits
– he or she now receives Permanent Disability benefits.
Permanent Disability benefits payments, or
“PDAs”, are considered “advances” against the eventual settlement of the claim

OVERVIEW OF THE WCAB SYSTEM
#2
The LCSA’s IWO no longer works
Generally, insurers will not deduct child support from Permanent Disability benefit payments
Why? There is no law to authorize it

OVERVIEW OF THE WCAB SYSTEM
#3
There is law to authorize 25% deductions from
Temporary Disability benefits
Code of Civil Procedure Section 704.160
NO law authorizes child support deductions from
Permanent Disability benefits

OVERVIEW OF THE WCAB SYSTEM
#4.
As Permanent Disability Benefits are paid out, the available compensation for child support is slowly paid out, until . . .
There isn’t any money, anymore
But – “Truck Insurance” says they must reserve out the amount of the lien

OVERVIEW OF THE WCAB SYSTEM
LCSA IMPACT POINT #2
SETTLEMENT OF THE LIEN
Assuming there IS money left, DCSS will seek to satisfy the lien.
Labor Code Section 4903(e)

Information from employer: Injuries, employer response form, interruptions to employer IWO.
EI005 task is generated on the case.
A phone call can be the difference between a case not having payments for months or having a brief interruption in payments.
Reach out to NCP and employer directly to find out more information.

WORKERS’ COMPENSATION: EARLY INTERVENTION
■
■
■
■
■
■ File a WCAB lien if unpaid child support accrued from the date of injury.
■ Monitor cases for payout if ineligible for a WCAB lien for straight collections and/or other intercepts.

REFERRALS: DIR AND CSE
EN043 tasks:
•
•
•
•
•
Generated at the participant level.
Weekly batch.
SSN is used as the matching identifier.
Likelihood of mismatches is high.
Population of claim insurance screen, only automated
CSE function in regards to workers compensation.

ESTABLISH AN EFFECTIVE WCAB UNIT
Establish a telephone number to call to settle liens or get accurate WCAB lien balances
Staff the telephone number during all business hours
Train your staff to settle liens
Give your WCAB staff settlement authority

ESTABLISH AN EFFECTIVE WCAB UNIT
Train nonattorneys to be “ Hearing Representatives ” to expand coverage
[Use the Hearing Representative Agreement form]
Ask other LCSAs to make appearances for you, when required [Family Code Section 17400(o)
Use the telephone call-in system , available in some areas.
Update and mail out Amended Liens
Use the newlycreated “ Petition to withhold Child
Support from Permanent Disability benefits”

ESTABLISH AN EFFECTIVE WCAB UNIT

DATA SOURCES: CSLN, OCSE and EAMS
CSLN:
• Matches are handled within CSLN first, not CSE.
• Only active claims are then transitioned manually by the
LCSA to CSE.
• Not only workers’ compensation claims feed through.
• For optimal claim management, large counties should review daily, smaller counties once a week.
• Can be used for other purposes like COAP asset research

DATA SOURCES: CSLN, OCSE and EAMS
OCSE:
• State DCSS staff handles incoming matches.
• Claim is manually loaded into CSE.
• Workers’ Compensation IWOs are generated directly out of CSE.

DATA SOURCES: CSLN, OCSE and EAMS
EAMS Public Search Tool:
• Not to be confused with the internal EAMS platform
• Main search done by first and last name. DOB can be added for accuracy.
• Events’ information is becoming more accurate each day.

FILING LIENS
Paper liens are unreliable, slow and cumbersome…
• Switching to e-filing is easy and free.
• One central location processes documents, no need to deal with WCAB branch specifics or response timeframes.
• Less use of paper, no need for cover sheets.
• Savings in postage

FILING LIENS
How can I transition into e-filing?
• Contact DIR. They host a cost free monthly webinar to train staff into the specifics of e-filing.
• Adapt your department’s procedures.

SETTLING LIENS
The law covering liens and their resolution is outlined by Labor Code Section 4903(e)
LCSAs are called
“Child Support Lien Claimants”

SETTLING LIENS
Created when the claim is first received, along with the IWO for TD payment deductions
Filed with the Board – mailed to parties
Created when a matter is set for MSC, Trial or Lien
Conference – Lien Trial
NOT filed with the Board – mailed to the parties

SETTLING LIENS
MSC when lien over $25k
Any Trial
Lien Conferences
Lien Trials
At any proceeding the court requests your
LCSA to be present

SETTLING LIENS
WCAB LITIGANTS MUST ATTEMPT TO
CONTACT YOU TO RESOLVE THE LIEN
*** They must telephone you at least once ***
Insertion of the phrase into the settlement documents stating litigants will
“pay, adjust or litigate the child support lien” is NO longer permissible

SETTLING LIENS
Most settlements take the form of a lump-sum payment called a
Less frequently, the applicant reserves their right to future medical treatment, and gets paid in periodic payments in a

SETTLING LIENS
The following protocols are to be used when there is a

SETTLING LIENS
It entirely depends on what amount of money is on the table
Do your research, first!

SETTLING LIENS
FIRST, determine the GROSS settlement amount
THEN, deduct out the following:
Attorney fees at 15% of settlement gross
&
Permanent Disability Advances

SETTLING LIENS
What remains is the NET settlement amount
Example:
GROSS settlement amount - $20,000
Less Attorney fees (15%) - $3,000
Less PDAs - $6,000
_________________
$11,000 is the NET settlement

SETTLING LIENS
Now, evaluate the NET settlement amount
If you can pay the lien in full, and leave the same or greater amount for the applicant,
REQUEST THE LIEN BE PAID IN FULL
If you cannot pay the lien in full, and leave the same or greater amount for the applicant,
SPLIT THE NET SETTLEMENT 50-50%

SETTLING LIENS
Examples
Net Settlement is $11,000
LCSA lien is $3,000
Ask for entire lien to be paid
This leaves the applicant $8,000

SETTLING LIENS
Examples
Net Settlement is $11,000
LCSA lien is $6,000
Ask for $5,500
Split the net with the applicant

SETTLING LIENS
History of LCSA payments is poor. Future payments are unlikely.
You sense the Board Judge is favorable to suggesting a higher lien pay-out
You can talk the Applicant/Applicant’s attorney into more since it will benefit their LCSA situation

SETTLING LIENS
Lack of Attorney Understanding of WCAB process
On occasion, some applicant attorneys will attempt to claim that no more than 25% of the settlement can be used to resolve the child support lien . . .

SETTLING LIENS
This misunderstanding comes from confusing the statute which allows 25% of TD payments: i.e., Code of Civil Procedure Section 704.160
with the correct code which allows Board Judges complete discretion to resolve the lien in any amount they feel is appropriate: i.e., Labor Code Section 4903(e)

SETTLING LIENS
In the event you are bullied, thwarted, browbeaten, ridiculed, belittled or otherwise mistreated by an applicant’s attorney who does not wish to resolve the lien pursuant to this widely-used, reasonable protocol,

SETTLING LIENS
When settlement talks are taking place, outline your settlement strategy to the parties
Attend ALL chamber conferences with the Judge
Remember – the litigants cannot settle the case without settling the child support lien, especially when child support lien is substantial in size

SETTLING LIENS
Oh, heck – they selected a “Findings & Award” settlement
NOW WHAT?
Applicant will now receive a modest, bi-weekly periodic payment until their entire compensation is paid out – this could take years
How does a LCSA get more than just a few $$$ a week?

SETTLING LIENS
INVOKE THE PHRASE ALL APPLICANT’S
ATTORNEY FEAR . . .
“ Your Honor, I would like to satisfy our child support lien by commuting off the far end of the award ”
And what does THAT mean?

SETTLING LIENS
The court will likely be sympathetic to the LCSA’s situation.
The court will then allow a lump-sum
“commutation” of periodic payments at the end of the payment cycle to be converted to a one-time, lump-sum payment made payable to the LCSA.

SETTLING LIENS
COMMUTATION EXAMPLE
Applicant is owed 240 payments of $185.00 bi-weekly to pay off his compensation award of
$44,400.00
You ask for 35 payments to be “commuted” to pay off the child support lien of $6,400.00

SETTLING LIENS
For All Lien Settlements . . .
PLACE THE SETTLEMENT PROVISIONS REGARD IN THE
LIEN INTO THE SETTLEMENT DOCUMENTS
[Get a copy of the settlement documents]
ALWAYS REQUEST THAT THE INSURER PAY THE CHILD
SUPPORT LIEN DIRECTLY TO THE SDU
NEVER ALLOW THE APPLICANT OR APPLICANT’S
ATTORNEY TO PAY THE LIEN FROM THEIR PROCEEDS

SETTLING LIENS
Lien Conferences and Lien Trials
LCSA representatives must attend or your lien might be resolved without your input, or disallowed
Trials can involve testimony, and even witnesses
Informal rules of Evidence are used

WHEN UNFORTUNATE THINGS HAPPEN
Why do unfortunate things happen?
Again, it is the nature of this system.
Things happened quickly, there is not sufficient time to check things (like your child support lien balance) correctly, and the parties are more interested in getting the case resolved than getting your lien exactly right
OR
You didn’t file your lien electronically

WHEN UNFORTUNATE THINGS HAPPEN
How to guard against this?
Electronically file your liens – most important!
Call litigants before and after each hearing
Stay in the minds of the litigants by making telephone calls and amending liens
Develop a relationship with your WCAB Judges
Frequently attend hearings, to show LCSA interest

WHEN UNFORTUNATE THINGS HAPPEN
SO, what can go wrong?
Your child support lien is omitted completely from the settlement
Your child support lien is underpaid
NO money is left to pay the child support lien

WHEN UNFORTUNATE THINGS HAPPEN
NOTIFY THE LITIGANTS OF THE PROBLEM
[by telephone, and confirm by FAX/Letter]
Ask the Defense counsel NOT to pay out the settlement money until the lien is resolved, or in the alternative, pay out all but the full amount of the lien.
File a Petition for Reconsideration
Or Declaration of Readiness

WHEN UNFORTUNATE THINGS HAPPEN
Insurers are required to pay out the settlement proceeds within thirty (30) calendar days of settlement documents being approved by the court.
You must file for your relief promptly!
Petitions for Reconsideration must be filed within twenty (20) calendar days of the award
[Labor Code Section 5903]

WHEN UNFORTUNATE THINGS HAPPEN
RECONSIDERATION FORM
Found on the
Department of Workers’ Compensation website
Use the DECLARATION OF READINESS FORM if the defense counsel agrees to wait to pay out the settlement until the child support lien issue is resolved

CLOSING CONSIDERATIONS
TO MAXIMIZE YOUR WCAB COLLECTIONS
1. ESTABLISH AN EFFECTIVE WCAB UNIT
Be available during business hours
Workers should have settlement authority
Train your personnel on WCAB issues
Use Hearing representatives
Electronically file liens

CLOSING CONSIDERATIONS
PAY ATTENTION
Telephone litigants before and after hearings
Amend and mail out liens frequently
Develop a relationship with your WCAB Judges
Watch for omitted or underpaid liens
Attend hearings frequently
Keep WCAB contact list updated and accurate

CLOSING CONSIDERATIONS
3. USE YOUR RESOURCES
Read and use the WCAB Guide
Understand the Glossary of Terms
Contact other LCSAs for assistance in attending remote WCAB hearings

RESOURCES
California Central :
Workers’ Compensation Procedures Manual
Workers’ Compensation Master Contact List
Hearing Representative Agreement

CLOSING CONSIDERATIONS

CONTACT INFORMATION
Angela Bott , Humboldt County DCSS
Child Support Specialist III
AJBott@co.humboldt.ca.us
( 707) 441-3240
Alix Haik-Bruno , Sacramento County DCSS
Child Support Officer III
Haik-brunoA@SacCounty.net
(916) 875-7618
Steven Pesante , San Bernardino County DCSS
Child Support Attorney IV spesante@css.sbcounty.gov
(909) 478-7439