What Is a Subsequent Injury Trust Fund in California?

In 2023, falls led to more than 8 million emergency room visits, making them the top reason people go to the ER. Slips and falls result in more than 1 million emergency room visits or 21.3% of all ER visits.

The Bureau of Labor Statistics (BLS) reports that slips, trips, and falls resulted in 450,540 work injuries and 865 work-related deaths. They are the third most common workplace injuries that lead to missed workdays. 

As protection for employers, they can utilize a special program aimed at helping employers avoid potential liability called the Subsequent Injuries Benefits Trust Fund (SIBTF). The SIBTF protects employers when they hire or keep employees who have pre-existing disabilities. Injured or disabled employees can receive additional compensation from SIBTF on top of their existing workers’ comp payments. 

Understanding the eligibility criteria, benefits, management, and how long SIBTF takes is important in obtaining financial security for those affected. 

Let’s look into the Subsequent Injury Trust Fund’s concept and how it operates within the context of California’s workers’ compensation system.

Purpose of the Fund

California’s Subsequent Injury Trust Fund was created to help protect employers financially and to promote the hiring of individuals with disabilities.

The state is helping to ease the financial strain on employers who hire people with pre-existing disabilities by setting up this fund. This initiative encourages companies to hire people with disabilities by alleviating concerns about possible higher workers’ compensation costs from future injuries.

The fund ensures that people with disabilities have the same opportunities in the workplace as everyone else. With the Subsequent Injury Trust Fund available, employers can feel more at ease when hiring individuals with disabilities, as they have financial protection in case of any future injuries.

History and establishment

The Subsequent Injury Trust Fund in California was created in 1945 under California Labor Code Section 4751, after World War II, when many injured veterans came back to work. Employers are concerned that hiring veterans with pre-existing disabilities could increase their workers’ compensation costs. The Subsequent Injury Trust Fund was established to tackle this issue and promote the hiring of individuals with disabilities.

The fund helps to compensate workers who have new injuries along with any pre-existing disabilities they may have. By doing so, it incentivized the hiring of individuals with disabilities who may have faced challenges in finding employment due to concerns about increased compensation costs. 

Over the years, the Fund has evolved to ensure fair compensation for workers with disabilities while also protecting the interests of employers.

Fund Operation and Management

The fund is overseen by a board of trustees who are responsible for smooth operation. The trustees take care of the fund’s finances, which involves collecting contributions from employers, managing investments, and making payments to those who are eligible to receive them.

The fund’s management team collaborates closely with stakeholders, including employers, insurers, and injured workers, to ensure that claims are processed efficiently and fairly.

Financial management practices are implemented to maintain the fund’s stability and effectiveness. Regular audits are conducted to comply with regulations and the proper allocation of resources. The fund’s management also stays informed of changes in legislation and adjusts operations accordingly to continue providing support to eligible individuals.

Eligibility Criteria

To be eligible for benefits, you need to have a documented and recognized permanent disability, as well as a later injury that causes additional disability. To be considered, the pre-existing disability needs to be related to workers’ compensation or be a qualifying medical condition.

You must have a combined disability rating of 70% or higher to be eligible for assistance from the Trust Fund. Individuals receiving workers’ compensation benefits at the time of the injury may also be eligible for support from the Trust Fund.

Understanding and meeting these eligibility criteria are necessary for accessing the benefits and assistance of the Subsequent Injury Trust Fund in California.

Benefits and Support Offered

In California, the Subsequent Injury Trust Fund offers benefits and support to people who have qualifying combined disabilities. If you qualify, the fund can help with medical bills, rehabilitation expenses, disability benefits, and even job training to support your return to work.

This fund offers financial assistance to people with different disabilities. This support makes sure you have the care and resources necessary to enjoy a good quality of life.

This fund can help you obtain assistive devices or make necessary adjustments at your workplace to support your ability to work. By making the most of these benefits, you can focus on your recovery and well-being without the added stress of managing the financial challenges that come with multiple disabilities.

The Subsequent Injury Trust Fund empowers individuals with combined disabilities by offering valuable support and resources to enhance their quality of life.

Conclusion

The SITF in California supports inclusive hiring by offering financial protection to employers who hire individuals with pre-existing disabilities, helping to create equal opportunities for people with disabilities in the workplace. 

The SITF also helps ease the financial strain on employers while also providing support to workers who experience further injuries, making sure they get fair compensation and the resources they need for their recovery and well-being.