New in 2025: Updated Workers' Compensation Posting Requirements

Background

California's workers' compensation laws are designed to protect employees who are injured on the job. As part of these protections, employers must adhere to strict posting requirements that inform employees of their rights and responsibilities regarding work-related injuries. This includes displaying a "Notice to Employees Injuries Caused by Work" (the Notice), which outlines essential information about workers’ compensation procedures.

New updates will become effective for this mandatory posting on January 1, 2025. Governor Gavin Newsom signed AB 1870 into law on July 15, 2024, which introduces changes to the Notice, making it even more crucial for employers to comply with the new guidelines.

What’s Changed?

Under the new law, employers in California must ensure the Notice to Employees includes updated information about the employee's right to consult an attorney and additional details about attorney fees related to workers' compensation cases. These updates aim to better inform injured workers of their legal options and the support available to them under the law.

Current Posting Requirements

Before the AB 1870 update, the California Labor Code 3550 already required the following key details to be prominently displayed in the workplace:

1. Employer’s Insurance Carrier – Information on the workers’ compensation insurance provider.
2. Emergency Medical Treatment – Instructions on how employees can obtain emergency medical care following a workplace injury.
3. Covered Incidents – A summary of the work-related injuries covered by workers' compensation.
4. Medical Care Rights – Information on the injured worker’s right to receive medical care, select or change their treating physician, and access certain benefits.
5. Reporting Injuries – Guidelines for how employees should report workplace injuries.
6. Notification Deadlines – Time limits within which employees must inform their employer about a work-related injury.
7. Protections Against Discrimination – A reminder that employees are protected from retaliation or discrimination when reporting an injury or filing a workers' compensation claim.
8. Claims Process – Information outlining the steps in filing a workers’ compensation claim.

What’s New in 2025?

With the introduction of AB 1870, two critical updates will now be required in the Notice:

1. Right to Consult an Attorney: The Notice must inform employees that they can consult with a licensed attorney regarding workers' compensation rights. This ensures that injured workers know they can seek legal advice to understand their rights under the law better.
2. Attorney’s Fees Information: It must also specify that, in most cases, attorney fees will be paid from the employee’s recovery. This means that employees won’t necessarily have to pay out of pocket for legal representation, which could encourage more workers to seek legal help if needed.

Settlement Details and Implications for Employers

Failure to comply with these updated posting requirements can have serious consequences for employers. Specifically, not prominently displaying the updated Notice can:

• Constitute a Misdemeanor: Employers who fail to meet the posting requirements could face criminal charges, resulting in fines or other penalties.
• Evidence of Non-Insurance: Failure to post the Notice could also be used as evidence that the employer does not have workers' compensation insurance, leading to further legal issues and penalties.

To stay compliant, employers can preorder the 2025 "all-in-one" state and federal poster from the California Chamber of Commerce, which will include the updated information required by AB 1870.

Key Takeaways for Employers

• January 1, 2025 is the deadline for employers to update their workers’ compensation postings to include the new requirements.
• The Notice must now explicitly state that injured employees have the right to consult an attorney, and in most cases, attorney fees will be paid from any recovery they receive.
• Employers who fail to meet these posting requirements could face significant legal and financial consequences, including criminal charges.
• Preordering updated posters from a reputable source like the California Chamber of Commerce ensures compliance and avoids potential penalties.

Conclusion

The new updates to the workers' compensation Notice emphasize the importance of fully informing injured employees of their legal rights. By clearly communicating the right to consult an attorney and the details of attorney fees, the state aims to support employees in navigating the often complex world of workers' compensation claims. Employers should take immediate steps to ensure they are in compliance with these new requirements by the start of 2025.

Recommendation for Employers

To ensure compliance and avoid penalties, employers should:

• Review Posting Locations: Ensure that the updated Notice is placed in a conspicuous area where employees can easily see it.
• Preorder Updated Posters: Obtain the updated 2025 “all-in-one” state and federal posters from trusted sources like the California Chamber of Commerce.
• Train Management: Ensure that managers and HR staff are aware of the new legal requirements and can answer employees' questions about their rights.

Being proactive in addressing these changes not only ensures compliance but also fosters a workplace that prioritizes employee rights and safety.