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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
HUMAN RESOURCES DEPARTMENT
DATE: MARCH 3, 2026
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: RESOLUTION APPROVING A LABOR MANAGEMENT
WORKERS' COMPENSATION ALTERNATIVE
DISPUTE RESOLUTION AGREEMENT BETWEEN
THE ANAHEIM FIREFIGHTERS’ ASSOCIATION,
LOCAL 2899 AND THE CITY OF ANAHEIM AND
RESCINDING RESOLUTION NO. 2018-020
ATTACHMENT (Y/N): YES ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council:
1. By Resolution, approve a Labor Management Workers’ Compensation Alternative Dispute Resolution Agreement (Agreement) between the City of Anaheim ("City") and the Anaheim Firefighters Association, Local 2899 ("AFA") establishing an Alternative Dispute Resolution program for workers' compensation claims and rescinding Resolution No. 2018-020; and
2. By Motion, authorize the Director of Human Resources to execute the Agreement and take any and all actions necessary to implement and administer the Agreement.
DISCUSSION:
At the January 13, 2026 Council meeting, Mayor Aitken requested an alternative dispute resolution with the AFA to address current workers’ compensation processes.
Section 3201.7 of the California Labor Code allows employers and employee bargaining groups to create a unique dispute resolution program to gain cost savings and efficiencies to address unique concerns of the bargaining group. These agreements, known as "carve-out" programs, are negotiated separately and apart from the collective bargaining process (MOU negotiations). These programs are becoming more frequently utilized in response to the cumbersome, litigious, and slow-moving State system.
The AFA and the City negotiated a carve out in February 2018. The current carve out was necessary to address potential delays in the existing workers' compensation claims process, which is strictly governed by the Labor Code. Under the current 2018 carve out, the agreement addressed utilization of an IME Panel for med-legal disputes, in addition to other areas as indicated in the attached February 27, 2018, staff report.
Resolution approving a Labor Management Workers' Compensation Alternative Dispute Resolution Agreement between the Anaheim Firefighters’ Association, Local 2899 and the City of Anaheim and rescinding Resolution No. 2018-020 March 3, 2026
Recently, the AFA and City have reached consensus in discussions resulting in a more robust Alternative Dispute Resolution ("ADR") agreement, which, in addition to the current process under the existing ADR, the proposed agreement will further address utilization of an IME Panel for med-legal disputes, procedures on Cancer and Heart presumption claims, and establishes an Orthopedic Fast Track Program to remove barriers to care and expedite access to diagnostics and treatment.
The state-mandated system utilizes a rotating list of Qualified Medical Examiners (QMW) to resolve disputes. This process is prone to delay due to the manner in scheduling the exam and the statutorily prescribed waiting period for final reports.
The agreed ADR program will operate to expedite the resolution of workers' compensation claims by utilizing a panel of Independent Medical Examiners (IME). This is expected to reduce the time to schedule exams and receive reports; return injured workers to full health and work faster; decrease litigation expenses; and improve morale. The anticipated savings associated with injured workers returning to work sooner will be seen through the reduction in salary continuation costs, along with a reduction in overtime costs necessary to backfill positions due to absences attributed to industrial injuries.
The City and AFA have agreed to a panel of physicians with specialties in various disciplines to serve as IME panelists. The physicians in each specialty will be assigned on a rotational basis, examining injured workers as needed. Additional physicians can also be added when 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 causation in the course and scope of employment. • The nature and extent of temporary, total disability. • The nature and extent of permanent disability and apportionment. • The level of work restrictions.
• Ability to return to work, including transitional duty. • The need for future medical care after maximum medical improvement.
The second component of the Agreement addresses those claims arising out of presumptive cancer and heart claims. Claim determinations for presumptive diagnoses for safety members must be made within seventy-five (75) days. If an employer is unable to make the determination within that time frame, the claim is denied pending receipt of medical legal reports.
The Agreement calls for the use of the IME panel to reduce delays in resolving medical-legal issues related to causation, diagnosis, and compensability. The Agreement calls for a determination within forty-five (45) days by utilizing the IME process for priority exam scheduling of AFA members; a preliminary report to address causation and workplace carcinogenic exposure; and a final report to follow. If the IME panelist is unable to provide a report within the timeframe allotted, the claim is subject to conditional denial and re-open when the findings and report are received by the City.
Resolution approving a Labor Management Workers' Compensation Alternative Dispute Resolution Agreement between the Anaheim Firefighters’ Association, Local 2899 and the City of Anaheim and rescinding Resolution No. 2018-020 March 3, 2026
The third component of the Agreement will establish an Orthopedic Fast Track Program (OFTP). The OFTP will permit expedited treatment for orthopedic injuries. The parties have established a list of preauthorized treatments to aid in diagnosis, treatment, recovery, and return to work.
The OFTP will provide preauthorization for imaging, physical therapy, and referrals to specialists where needed. Preauthorization is based on applicable medical treatment guidelines.
Services will be paid based on the Official Medical Fee Schedule. All other services will be handled using the Request For Authorization (RFA) process.
All medical-legal disputes will be resolved using the IME process. Either party can object to causation determinations, nature and extent of injuries, permanent disability, apportionment, etc. The original IME physician will be relied upon to resolve all subsequent disputes. All IME reports will be required to adhere to applicable regulatory guidelines.
Upon approval by the City Council, the Agreement will be submitted for approval to the Administrative Director of the State of California Department of Industrial Relations, Division of Workers' Compensation. Upon acceptance by the Administrative Director, the program will be in effect for two (2) 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 Insurance Fund budget.
Respectfully submitted,
Linda N. Andal
Human Resources Director
Attachments:
1. Resolution
2. Agreement (Exhibit to Resolution)
3. February 27, 2018 staff report (without attachments)