Newsom signs law AB 1683 impacting workers' compensation payments

California Governor Gavin Newsom has signed into law Assembly Bill 1683, a measure that permanently modifies how workers' compensation payments are disbursed.

The new legislation removes the January 1, 2027, expiration date previously set for the use of prepaid cards in delivering disability and workers' compensation payments. This effectively makes the use of prepaid cards a permanent and indefinite option for employers to issue these crucial funds to their employees.

The bill was part of a package of six legislative measures signed by Newsom, impacting various key sectors within California. The AB 1683 specifically addresses the administrative aspects of workers' compensation, ensuring that injured employees continue to receive their entitled compensation through a flexible payment method.

While the law makes prepaid cards a permanent fixture, it also maintains certain requirements for their use. These protections are designed to ensure that the prepaid card system offers adequate safeguards for the employee. Furthermore, the legislation clarifies that delays in deposits caused by the application of state or federal banking laws will not be considered a violation of the law.