April 28, 2025 | MedLegalNews.com – Good Faith Bill
Good Faith Bill Targets Unreasonable Delays and Strengthens Enforcement in Workers’ Compensation Cases
The California State Assembly has approved AB 1870, also known as the “Good Faith Bill.” Authored by Assemblymember Liz Ortega, the legislation aims to hold employers and insurers accountable for unreasonable delays in workers’ compensation claims.
AB 1870 explicitly defines what it means to act in “good faith” when administering workers’ comp benefits. It states that any unjustified refusal or delay in paying benefits—including treatment authorization—can be considered a breach of that obligation. Moreover, the bill strengthens enforcement by empowering judges to assess stiffer penalties when violations occur.
During a recent hearing before the Assembly Insurance Committee, Ortega emphasized the urgency of the bill.
“This bill protects injured workers who suffer while waiting for care,” she said. “Delays without cause are not just bureaucratic errors—they are harmful acts.”
Currently, Labor Code § 5814 imposes penalties for delayed or denied benefits. However, enforcement is inconsistent. According to advocates, vague standards allow some employers and carriers to delay care strategically—often to pressure injured workers into settlements. AB 1870 seeks to eliminate that gray area.
Importantly, the bill would also make it harder for payers to justify delays with generic or inadequate documentation. It requires that denials or delays be supported by clear, reasonable cause—not simply administrative discretion.
Having cleared the Assembly, the measure now moves to the Senate for consideration. If it becomes law, it could significantly reshape how California handles workers’ compensation disputes.
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