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"Carve-out" programs allow employers and unions to create their own alternatives for workers' compensation benefit delivery and dispute resolution under a collective bargaining agreement.  SB 863 added "The State of California" to industries that can establish carve-outs.

These programs do not allow diminishing the entitlement of an employee to compensation payments for total or partial disability, temporary disability, vocational rehabilitation, or medical treatment. Industries other than construction cannot "deny to any employee the right to representation by counsel at all stages during the alternative dispute resolution process." See LC §3201.7.

The carve-out provisions were found to be in compliance with  the California Constitution. The Workers' Compensation Appeals Board, in Tony Costa v. WCAB, dismissed a union electrician's claim for lack of jurisdiction, finding it was subject to a valid agreement in compliance with Labor Code §3201.5. The decision was confirmed by the Court of Appeal; the Supreme Court denied review.

Disputes are generally heard in arbitration and/or mediation.

Current carve-out list for construction injurycurrent list for other industries.

Label Item Links Comments
Labor Code Construction industry LC §3201.5  
Labor Code All other industries (including The State of California).
LC §3201.7  
Regulations/Rules Collective Bargaining Agreements Under Labor Code Sections 3201.5 and 3201.7 8 CCR  
Websites Official State page also contains links to current lists of carve-out particpants. Carve-out  
Practice Tips Before filing with WCAB, check the carve-out lists (see above) for any union employee clients.    
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