New California Workers' Compensation Laws Taking Effect in 2026 - Latest News

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Posted on: Dec 29, 2025

California’s workers’ compensation landscape will see several important statutory changes beginning January 1, 2026. Legislation enacted this year expanded protections for public safety workers, closed long-standing benefit gaps, addressed procedural issues within the system, and more. While most measures were met with opposition from employer and public agency groups, these new laws will have meaningful impacts for injured workers, their families, and practitioners navigating claims in 2026.

SB 20 (Menjivar) Occupational Safety: High-Exposure Trigger Tasks on Artificial Stone: SB 20 addresses worker safety in the artificial stone fabrication industry by prohibiting a person or entity engaged in “high-exposure trigger tasks” from using dry methods when engaging in those tasks. It requires an owner or operator of a fabrication shop, or any individual who employs another individual to perform high-exposure trigger tasks in a fabrication shop, to ensure that any employee who performs those tasks receives training and to provide to Cal/OSHA a written attestation of that training beginning on July 1, 2026 and annually thereafter. It also requires the State Department of Public Health (CDPH) to conduct outreach to these businesses.

SB 230 (Laird) Workers’ compensation: firefightersSB 230 expands rebuttable presumptions for firefighters by extending coverage for cancer, PTSD, and other injuries to firefighters working at commercial airports. It also broadens presumptions for conditions such as pneumonia to firefighters serving at commercial airports, NASA installations, and U.S. Department of Defense facilities, further strengthening presumptive coverage for high-risk public safety work environments.

SB 447 (Umberg) Death Benefits: SB 447 closes a gap between state and federal law by extending employer-provided health benefits for minor dependents of certain public safety personnel who die in the line of duty until age 26. Previously capped at age 21 under California law, the update aligns with the Affordable Care Act and ensures continued coverage for surviving children.

SB 487 (Grayson) Injured Peace Officers and FirefightersSB 487 significantly limits employer subrogation rights in third-party recovery actions involving specified peace officers and firefighters. The bill guarantees these employees at least two-thirds of available liability insurance proceeds when damages exceed the net recovery and available insurance is insufficient to fully compensate both parties. Employers are further prohibited from using the employee’s recovery as a credit against future workers’ compensation benefits, and settlements must limit employer reimbursement claims. 

AB 799 (Rodriguez) Death Benefits for Incarcerated FirefightersAB 799 provides a dedicated death benefit for incarcerated individual hand crew members participating in the California Conservation Camp program who die as a result of active deployment or training. The benefit includes a $50,000 payment plus 50 percent of the individual’s annual compensation from the preceding 12 months, notwithstanding other workers’ compensation provisions.

AB 1125 (Nguyen) Workers’ compensation: Peace OfficersAB 1125 extends the heart injury presumption to peace officers employed by the State Department of State Hospitals, affording them the same presumptive benefits previously limited to officers at Atascadero State Hospital. The change recognizes the comparable occupational risks faced by these workers.

AB 1293 (Wallis): Qualified Medical EvaluatorsAB 1293 directs the state to develop standardized templates for Qualified Medical Examiner (QME) reports and medical evaluation request forms. While use of the templates will not create a presumption of compliance, the measure aims to improve consistency, clarity, and overall quality of medical reporting in workers’ compensation cases. The bill would require the Division of Workers Compensation to adopt regulations to implement these provisions by January 1, 2027.

AB 1398 (Valencia) Self-Dealing SchemesTargeting fraud and conflicts of interest, AB 1398 requires anyone involved in referring services to disclose in writing any financial interest they have when a claim for payment is submitted. It also clarifies that prosecutors can bring felony charges under existing fraud laws (penal Code 550) when someone is involved in self-dealing schemes, even if the scheme also violates Labor code Section 139.2.

All of the laws described above, unless noted, take effect on or apply to injuries occurring on or after January 1, 2026.

Together, these new laws show California’s ongoing effort to expand benefits for public safety workers, protect vulnerable worker populations, and improve the administration of the workers’ compensation system. For applicants’ attorneys, the 2026 changes present both new opportunities and important compliance considerations, particularly in cases involving presumptions, subrogation, dependent benefits, and medical-legal reporting.

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