HomeMy WebLinkAboutEstablish Workers' Compensation Settlement Policy and Case Settlement Committee 03/24/2005CITY OF PALM DESERT
Office of the Director of Human Resources
Community Services Division
Staff Report
REQUEST: Requestfor Establishment of Workers' Compensation Settlement
Policy and Workers' Compensation Case Settlement Committee
SUBMITTED BY: Duane K. Munson, Director of Human Resources
DATE: March 24, 2005
CONTENTS 1. Draft Workers' Compensation Settlement Policy
2. Settlement Authority Form
Recommendation:
By Minute Motion: 1) Approve the Workers' Compensation Settlement Policy; 2) direct the
City Manager to implement same.
Discussion:
One of the benefits the City receives by virtue of its membership in the California Joint
Powers Insurance Authority (CJPIA) is the Workers' Compensation claims processing
services of Southern California Risk Management Association (SCRMA). The City of Palm
Desert has maintained an exemplary record for worker safety and a corresponding low
level of Workers' Compensation claims; however, from time to time, existing cases present
the City with opportunities for settlement.
In the past, we have had to bring each proposed settlement agreement to the City Council
for its authorization to negotiate settlement. Because these more often than not need
immediate attention, staff is recommending that the City Council establish a policy which
would give the City Manager the authority to negotiate settlement up to the amount of
$100,000. This would expedite the process, ensure that the City does not lose the
opportunity to negotiate, and allow us to more proficiently administer resolution of these
claims.
CITY COUNCIL STAFF REPORT
RE: WORKERS' COMPENSATION POLICY
MARCH 24, 2005
There are two forms of voluntary settlement, the most common being the Compromise and
Release (C&R). The other form is the Stipulated Findings and Award. The advantage of
the C&R is that it requires a cash settlement without the uncertainty of future medical
obligations, and it provides for a complete release of past, present, and future liability.
When there is an opportunity for settlement, the law firm that has been selected to defend
the City's interest notifies SCRMA and copies the City. The attorney's letter presents the
potential settlement, along with some justification for acceptance. SCRMA notifies the City
to acquire the authority to enter into the settlement agreement. The cash required to fund
the settlement agreement does not come directly out of City funds, but the settlements and
judgments paid on behalf of the City have an effect on the rate that we pay for Workers'
Compensation Insurance through the CJPIA.
I have attached a draft policy for City Council review. This policy establishes a review
committee under the leadership of the City Manager. It will consist of three members: the
Assistant City Manager for Community Services, the Director of Finance, and the Director
of Human Resources. This committee shall review and evaluate any and all opportunities
to reach a voluntary settlement in workers' compensation cases where the City of Palm
Desert has been named as the defendant. It will then make a recommendation to the City
Manager for approval. This allows the City to pursue voluntary settlement by way of
Compromise and Release or Stipulated Findings and Award. Settlement authority in
excess of $100,000 will require City Council review and approval.
Director of Human Resources
Approval:
CARLOS L. O GA
City Manager
2
Reviewed and Approved:
iSHEILAGILLZN/ J
ACM/Community Services
PAUL S. GIBSON
Director of Finance
ADMINISTRATIVE POLICY
Affecting
Workers' Compensation Case Settlements
March 24, 2005
There are two forms of voluntary settlement, the most common being the Compromise and
Release (C&R). The other form is the Stipulated Findings and Award. The advantage of
the C&R is that it requires a cash settlement without the uncertainty of future medical
obligations, and it provides for a complete release of past, present, and future liability.
When there is an opportunity for settlement, the law firm that has been selected to defend
the City's interest notifies Southern California Risk Management Association (SCRMA) and
copies the City. The attorney's letter presents the potential settlement, along with some
justification for acceptance. SCRMA notifies the City to acquire the authority to enter into
the settlement agreement. The cash required to fund the settlement agreement does not
come directly out of City funds, but the settlements and judgments paid on behalf of the
City have an effect on the rate that we pay for Workers' Compensation Insurance through
the CJPIA.
This policy establishes a Workers' Compensation Case Settlement Committee, consisting
of the Assistant City Manager for Community Services, the Director of Finance, and the
Director of Human Resources (or their authorized designee). This committee shall review
and evaluate any and all opportunities to reach a voluntary settlement in Workers'
Compensation cases where the City of Palm Desert has been named as the defendant.
It shall then recommend approval to the City Manager to authorize the CJPIA and/or its
legal counsel to pursue voluntary settlement(s) by way of Compromise and Release or
Stipulated Findings and Award. The settlement authority delegated to the Workers'
Compensation Case Settlement Committee shall not exceed $100,000; settlement
authority in excess of $100,000 will require City Council review and approval.
WORKERS' COMPENSATION CLAIM
SETTLEMENT AUTHORITY
WCAB case name: vs City of Palm Desert
WCAB case number(s):
Claim number:
Type of Settlement: Compromise and Release
Stipulated Findings and Award
Terms and conditions of settlement:
Other Conditions (if any):
Cash: $
Attach attorney's letterof recommendation and/orSCRMA letter recommending settlement.
Reviewed and Approved:
Date:
Assistant City Manager for Community Services
Date:
Director of Finance
Date:
Director of Human Resources
Final Approval:
Date:
City Manager