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CITY COUNCIL AGENDA REPORT
City of Anaheim
HUMAN RESOURCES DEPARTMENT
DATE: FEBRUARY 27, 2018
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: APPROVING AN AGREEMENT BETWEEN THE CITY OF
ANAHEIM AND THE ANAHEIM FIREFIGHTERS
ASSOCIATION, LOCAL 2899, ESTABLISHING A PILOT
PROGRAM FOR AN ALTERNATIVE DISPUTE RESOLUTION
PROCESS FOR WORKERS’ COMPENSATION CLAIM
DISPUTES
ATTACHMENT ( Y/ N): YES ITEM # 20
RECOMMENDATION:
That the City Council, by Resolution, approve an Agreement betweenthe City of Anaheim (“ City”) and the Anaheim Firefighters Association, Local 2899 (“ AFA”) establishing an Alternative Dispute Resolution pilot program for workers’ compensation claims, for a period of two ( 2) years. Thereafter, the Agreement will continue unless terminated by either party asset forth in the Agreement.
DISCUSSION:
The AFA and City have, over the past 18 months, engagedin discussionswhich have resulted in an agreement for a two year Alternative Dispute Resolution (“ ADR”) pilot program, asa meansof expediting the resolution of disputesin the workers’ compensation process.
Section 3201.7 of the California Labor Code allows employers and employee bargaining groups to createa unique dispute resolution program. Theseagreements, known as carve-out” programs, are negotiated separatelyand apart from the typical labor bargaining process. While theseprograms have beenutilized in a limited manner for the pastdecade, they have more recently becomeprevalent in the fire service over the past few years.
This program is designedto addresspotential delays in the existing workers’ compensationprocesswhich is strictly governed by the Labor Code. Presently, when disputesarise, injured workers are required to be seenby physicians who are on the state’s rotating list of Qualified Medical Examiners (QME). This processis prone to delay, for reasons including the scheduling of exams and the preparation of a report which governs the ultimate outcome of a claim.
The agreedupon ADR program seeksto potentially expedite the resolution of workers’ compensation claims by reducing the time to schedule exams and receive reports;
APPROVING AN AGREEMENT BETWEEN THE CITY OF ANAHEIM AND THE ANAHEIM FIREFIGHTERS ASSOCIATION, LOCAL 2899, ESTABLISHING A PILOT PROGRAM FOR AN ALTERNATIVE DISPUTE RESOLUTION PROCESS FOR WORKERS’ COMPENSATION CLAIM DISPUTES
February 27, 2018
returning injured workers to work faster; decreasing litigation expenses; and improving morale. The anticipated savings associatedwith injured workers returning to work sooner will be seen through the reduction in salary continuation costs, along with a reduction in overtime costsnecessaryto backfill positions due to a vacancy as a result of an industrial injury.
The City and AFA have agreed to a panel of physicians with specialties in various disciplines to serveasa QME. The physicians in eachspecialty will be on a rotational basis of examining injured workers as needed. Additional physicians can also be added as/if needed. The ADR program will rely on a rotating list of physicians to help settle disputes arising out of workers’ compensation claims for the following:
Determination of causationin the courseand scopeof employment; The nature and extent of temporary, total disability;
The nature and extent of permanentdisability and apportionment; The level of work restrictions;
Ability to return to work, including transitional duty; and The need for future medical care after maximum medical improvement.
Upon approval by the City Council, the Agreement will be submitted for approval to the Administrative Director of the Stateof California Department of Industrial Relations, Division of Workers’ Compensation. Upon acceptance by the Administrative Director, the pilot program will be in effect for two years. Thereafter, the Agreement will continue unless terminated by either party as set forth in the Agreement.
IMPACT ON BUDGET:
Costs associated with this program are included in the Human Resource Department’ s InsuranceFund budget.
Respectfully submitted,
Jason R. Motsick
Acting Human ResourcesDirector
Attachments:
1. Resolution
2. Agreement