Lucky Bucks: A Sixty-Second Seminar in Workers’ Compensation Claims Handling

Allow us to begin today’s blog with a question. Have you ever experienced the thrill of scratching off a winning California lottery ticket? A $5 winner alone would probably make a smile come to your face. Winning $50 would likely inspire multiple fist pumps. But how about winning $500? How exciting would that be?

Our workers’ compensation system provides a benefit that offers more excitement than scratching off a winning lottery ticket. A $500 cash prize is available to every injured worker who receives a supplemental job displacement benefit voucher. All the worker has to do is sign and submit a pre-printed form. Upon receipt, the claims examiner will mail a $500 check to the worker. It’s as easy as that. It’s truly like scratching off a winning lottery ticket. This $500 work comp benefit has a nickname. It’s called “Lucky Bucks” and is paid tax free with no questions asked.

Unfortunately, most injured workers and claims administrators have no idea what the money is for. Legally, it’s not a gift, but an exchange. Regulation 10133.31(f)(6) clearly states that upon submission of a signed “Request For Miscellaneous Expense” form and without the necessity of receipts, itemization, accounting, or supporting documentation being submitted, the injured worker is entitled to a payment of up to $500 under the voucher. In exchange, the worker gives up the right to claim reimbursement for transportation, travel expenses, telephone or internet access, clothing or uniforms, and incidental expenses.

All too often, after receiving $500 in “Lucky Bucks”, the injured worker will still submit receipts for reimbursement for travel, mileage, parking, and other miscellaneous expenses. Such requests are non-compensable. Sometimes the procedure is reversed: the injured worker requests reimbursement of the expenses first, and then seeks payment of the Lucky Bucks as well. This too is not allowed.

Unfortunately, far too many claim examiners receive inadequate training on such finer points of handling voucher claims. It is quite common for many to mistakenly pay both “Lucky Bucks” and expenses because they never received instruction on what to pay. It is our sincerest wish that with today’s blog, the Law Firm of Friedman + Bartoumian has enlightened our friends and clients, thus putting an end to the needless practice of allowing a claimant to double-dip against voucher benefits.