Page 55 - CPAAC_Fall2015

Carve Outs - The Better Alternative 09/17/2015
To Workers' Compensation

WHAT IS A CARVE-OUT?

 Statutorily Authorized Alternative Method For
Providing Workers Compensation Benefits

 Utilizes Alternative Dispute Resolution Practices
(ADR)

 Authorized Under Labor Code Sections 3201.5
(Construction Industry) and 3201.7 (Any Other
Industry Meeting Minimum Requirements)

© 2015 Renne Sloan Holtzman Sakai
Public Law Group™

HISTORY OF CARVE-OUT LEGISLATION 2

1993 SB 983 – Labor Code Section 3201.5: Permitted employers and employees in construction and
related industries to engage in collective bargaining for alternative workers’ compensation
procedures

1994 SB 853 – Labor Code Section 3201.5: Required parties in the carve out to submit eligibility and
receive approval from an administrative director

2002 AB 749 – Labor Code Section 3201.7: Permitted carve outs in the aerospace and timber
industries

2003 SB 228 – Labor Code Section 3201.7: Provided for carve outs in any industry

2004 SB 899 – Employer and union may negotiate any aspect of benefit delivery if employees are
eligible for group health and non occupational disability benefits

© 2015 Renne Sloan Holtzman Sakai
Public Law Group™

© Renne Sloan Holtzman Sakai
Public Law Group™