SB 487

This bill modifies California’s workers’ compensation system to address situations where peace officers or firefighters are injured on the job. It establishes that when an injured employee is a peace officer or firefighter, the employer is only entitled to a maximum one-third share of any third-party liability insurance payout, provided the employee’s total damages exceed the insurance limits and the recovery is insufficient to fully compensate both the employee and the employer. The bill also limits an employer’s ability to recover reimbursement, subrogation, or liens to this maximum recovery threshold and prohibits using any employee’s recovery to offset future workers’ compensation benefits. These provisions apply specifically to local entities like cities and counties.