CA governor confers COVID-19 'presumption' for all who worked during shelter in place

On May 6, 2020, Governor Gavin Newsom issued a controversial Executive Order (EO) that added a workers' compensation dimension to the COVID-19 pandemic. Ignoring the legislature, the governor ordered that any coronavirus-related illness would be presumed to arise "out of and in the course of employment" for any employee who tested positive for or was diagnosed with the illness within 14 days of performing labor or services for a publicor private-sector employer.

The governor's broad authority in times of emergency allows an override of existing legislation, but the EO is temporary, covering the period from March 19 to July 5. Temporary or not, the rebuttable presumption concept embedded in the EO signals a radical shift in workers' comp claims management. Perhaps even more important, the order is a harbinger of a fundamental shift in responsibility for paying COVID-related medical costs: a shift from healthcare providers to employers, through COVID-related increases in workers' comp insurance costs.

Requirements

The new temporary presumption covers any employee working outside the home (i.e., not telecommuting) at the employer's direction during the shelter-in-place period. Important details of the EO include: