April 23, 2025 | MedLegalNews.com – Sacramento, CA – 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 bill prohibits public employers from pursuing subrogation in civil suits unless those lawsuits are limited strictly to economic damages. If a first responder also seeks compensation for emotional distress or pain, the employer would no longer have the right to reimbursement.
This amendment represents a shift in how California handles third-party liability involving public safety workers.
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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