Newsline No. 19-12  
May 11, 2012  

Division of Workers' Compensation administrative director announces enforcement change of 2012 profile audit review and full compliance audit performance standards

Labor Code §4658.5(c), which required employers/claims administrators to provide a notice of potential eligibility for the supplemental job displacement benefit (SJDB), was repealed effective Jan. 1,2012. DWC Newsline 58-11 (Dec. 14, 2011), which announced the audit performance standards for 2012, stated that enforcement of section 4658.5(c) would be suspended effective Jan. 1, 2012. 

The administrative director has determined that the repeal of section 4658.5(c) should apply to all audits that were conducted using the 2011 performance standards, but not completed on or before Dec. 31, 2011.

Provision of the SJDB notice had been considered in the 5th performance factor for files reviewed in the profile audit review (PAR) audit process [see 8CCR§10107.1(c)(3)(E)]. The Audit Unit will be recalculating the performance ratings for any audits for which a final report had not been issued as of Dec. 31, 2011 and will issue amended reports for those audits.