April 23, 2025 | Sacramento, CA — MedLegalNews.com — Lawmaker Amends Bill: California Assemblymember Liz Ortega has amended AB 1329 to restrict when public employers can recover workers’ compensation costs in lawsuits brought by first responders.
Under the proposed changes, cities, counties, and other public employers would lose their subrogation rights if a first responder’s lawsuit includes claims for non-economic damages, such as pain and suffering.
Key Changes to Subrogation Law
The proposed amendment to AB 1329 represents a significant shift in how California law treats subrogation rights in cases involving first responders. Traditionally, public employers—such as cities and counties—have had the right to pursue subrogation rights in cases where an employee seeks third-party compensation. This means that if a first responder is injured on the job and subsequently sues a third party, the employer can recoup the workers’ compensation costs they paid out. However, the new provisions would limit this right.
Under the amended bill, subrogation rights would only be allowed in lawsuits where the first responder is seeking economic damages—such as medical bills or lost wages. However, if the first responder also seeks non-economic damages—for example, compensation for pain, suffering, or emotional distress—public employers would lose their right to pursue subrogation rights.
This change could provide greater protection to first responders who may be experiencing psychological or emotional trauma from their injuries. By allowing them to seek full compensation for these non-economic damages without the threat of their employer coming after a portion of the settlement, the bill aims to ensure that workers are not pressured to limit the scope of their claims.
The Motivation Behind the Amendment
Supporters say the change protects first responders from pressure to limit the scope of their legal claims. Currently, employers may seek repayment for benefits they’ve provided, which can complicate or reduce a worker’s civil recovery.
By removing the employer’s subrogation interest in broader claims, the amendment aims to give injured workers more freedom in pursuing full compensation.
Impact on Public Agencies
Lawmaker Amends Bill: Legal analysts warn that the bill could raise costs for public entities. Without subrogation rights, cities and counties may be unable to recoup large payouts related to third-party accidents. This may strain budgets or lead to higher insurance premiums for public agencies.
Still, proponents argue that first responders deserve the right to pursue full legal relief without interference from their employers.
What’s Next?
The Assembly Committee on Insurance will review the revised version of AB 1329. If approved, the bill will move to the Assembly floor for further debate. Stakeholders from across California’s workers’ compensation and municipal sectors are expected to weigh in.
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FAQs: About Subrogation Rights for First Responders
What are Subrogation Rights for First Responders?
Subrogation rights refer to the ability of public employers to recover workers’ compensation costs when an employee sues a third party. However, recent amendments in AB 1329 limit these rights when emotional distress or non-economic damages are involved.
How Does AB 1329 Affect First Responders’ Lawsuits?
AB 1329 removes subrogation rights for public employers if a first responder’s lawsuit seeks compensation for non-economic damages, such as pain and suffering, allowing workers more freedom in pursuing their claims.
Why Is AB 1329 Important for Public Agencies?
While AB 1329 provides greater legal protection for first responders, it could increase costs for cities and counties, who may no longer recover large payouts related to third-party accidents. This could potentially lead to higher insurance premiums for local governments.
What’s the Next Step for AB 1329?
The bill will undergo further review by the Assembly Committee on Insurance. If passed, it will continue through legislative processes, with additional input from stakeholders in California’s workers’ compensation and municipal sectors.