April 28, 2025 | Sacramento, CA — MedLegalNews.com — The California State Assembly has passed Assembly Bill 1870, also known as the Good Faith Bill, a reform aimed at curbing unjustified delays in workers’ compensation claims and holding insurers accountable for bad-faith conduct. If enacted, the bill could significantly transform how benefits are administered and enforced across the state.
Legislation Targets Loopholes That Enable Strategic Claims Delays
The Good Faith Bill introduces precise definitions and enforcement mechanisms to ensure that workers’ compensation benefits are processed promptly and fairly. Authored by Assemblymember Liz Ortega (D-San Leandro), AB 1870 explicitly states that unjustified refusals or delays in benefit payments—particularly treatment authorizations—may constitute a violation of good faith.
Currently, Labor Code § 5814 outlines penalties for delayed benefits, but vague language has allowed some employers and insurers to exploit procedural gaps. This often forces injured workers into settlements or prolongs their access to necessary care.
“This bill protects injured workers who suffer while waiting for care,” said Ortega during a hearing before the Assembly Insurance Committee. “Delays without cause are not just bureaucratic errors—they are harmful acts.”
The proposed law would close these gaps by requiring denials and delays to be supported by specific, documented justifications—not just administrative discretion. It also empowers workers’ compensation judges to issue stronger penalties when bad faith is proven.
Having cleared the Assembly, AB 1870 now awaits Senate consideration. If passed, it will reshape the legal expectations surrounding timely benefit delivery in California.
For full legislative text, visit the California Legislative Information portal.
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FAQs: Lawmakers Pass ‘Good Faith Bill’ to Strengthen Prompt Workers’ Comp Payments
What is the Good Faith Bill in California?
The Good Faith Bill, or AB 1870, is a legislative proposal that defines good faith standards in workers’ compensation claims and allows for stricter penalties when employers or insurers delay or deny benefits without valid justification.
Who authored the Good Faith Bill?
Assemblymember Liz Ortega (D-San Leandro) introduced AB 1870 to address inconsistencies and delays in workers’ compensation benefit delivery.
How will AB 1870 affect workers’ compensation claims?
If enacted, the bill would eliminate ambiguity around delays, require clear documentation for denials, and empower judges to penalize bad-faith conduct more effectively.
Has the Good Faith Bill become law?
As of April 2025, the bill has passed the California Assembly and is now under review in the State Senate.