SB 487: Workers’ compensation.

This bill aims to provide better compensation for injured peace officers and firefighters. When an injured employee is a peace officer or firefighter, the employer will only receive up to one-third of the third-party defendant's liability insurance policy limit if the employee's damages exceed the employer's claim and the insurance limits are insufficient. The bill limits an employer's right to reimbursement, subrogation, or lien to the maximum recovery threshold. An employer cannot use the injured employee's future workers' compensation benefits as a credit or offset against the employee's claim. The bill also requires any settlement or release to limit the employer's claim for reimbursement to the portion not allocated to the employee. These provisions only apply to certain local employees, such as those working for cities, counties, or other local entities.