CDCR requests workers’ compensation funding to manage lingering COVID claims

California Department of Corrections and Rehabilitation officials told the subcommittee they seek budget authority to cover workers’ compensation shortfalls and to extend limited-term positions to process long-running COVID-related claims.

CDCR requested $8.5 million ongoing to address a baseline workers’ compensation shortfall and an additional $33 million one-time in 2025–26 and $30.5 million in 2026–27 plus 162 limited-term positions to address COVID-related claim workload, Dwayne Reeder and Joanna Cagle said.

Panelists said the agency received 19,309 COVID workers’ compensation claims since the pandemic began; as of December 2024 CDCR reported about 1,085 open COVID claims. Officials stated the department receives about 95 additional COVID-related claims per month, most resolving quickly but a portion becoming long-duration claims that require ongoing medical management and return-to-work planning.

Committee members asked whether claims represent active illness, long COVID or other medical conditions and how CDCR is returning employees to work. CCHCS and CDCR witnesses said most new claims close quickly but the lingering cases need significant medical and administrative resources. Officials noted the state uses the State Compensation Insurance Fund to manage claims and pays service fees for adjusters, and that return-to-work coordinators are handling part of the workload.

Senators asked about workplace safety measures and programs to reduce future claims. Witnesses highlighted employee-health programs, respiratory protection and efforts to reduce exposures, and said they would report additional detail to the committee.