EDD Reps Leaving WCAB District Offices

Thursday, May 28, 2026 | 0

State officials confirmed Wednesday that California’s Employment Development Department is pulling its physical offices out of workers’ compensation courthouses next month, a major operational shift that attorneys warn will stall case settlements.

The transition, first reported by workers' compensation defense firm Bradford & Barthel, will see the agency let its physical leases expire at Workers’ Compensation Appeals Board locations by the end of June in favor of virtual operations.

In a statement to WorkCompCentral, EDD Public Affairs Chief Greg Lawson said state disability insurance representatives have been attending workers' compensation hearings remotely, but they have not been regularly using spaces leased from the DIR. The agency concluded that virtual participation is efficient and effective, and it decided not to renew the leased spaces, Lawson wrote.

"EDD has been proactively communicating with boards since early April to inform them of the decision and to reaffirm our commitment to our role in the lien recovery process," Lawson said. "While we are concentrating our resources on virtual participation, for any proceedings that require in-person reporting, such as the lien trials, DI will continue to attend these in person."

He also said the agency is working to implement a statewide call line, rather than directing calls to specific geographic offices, in an effort to make it easier for attorneys and judges to contact disability insurance representatives.

"It will be staffed with skilled employees who can negotiate liens with attorneys, providing the same expert employee support to resolve lien negotiations as we do today," Lawson said.

While the EDD promises a seamless virtual shift, practicing attorneys are skeptical.

Bradford & Barthel partner John P. Kamin, who uncovered the planned departure, said it can already be difficult to track down EDD representatives by phone. As a result, defense attorneys wanting to finalize a settlement frequently have to head to the WCAB to track down a representative face-to-face.

Kamin noted that judges generally won't approve settlements without an assurance that the defense has resolved the EDD lien or agreed to hold the injured worker harmless.

Kamin said it would be a positive development if EDD creates a workable call center that allows parties to quickly resolve the agency's liens.

"But if the current situation persists — and attorneys cannot reach EDD reps virtually or in-person anymore — then settlements are going to stall indefinitely," he wrote.

The issue stems from how EDD liens are legally required to be handled.

EDD administers the State Disability Insurance program, which provides short-term wage replacement benefits for up to 52 weeks when someone can't work because of a nonoccupational injury or illness. Injured workers can file for state disability when a workers' compensation claim is denied, and EDD will pursue a lien if the claim is later found to be compensable.

Parties generally need to resolve liens before a judge can approve a settlement agreement. However, Labor Code Section 4904, which is entirely dedicated to EDD liens, creates a carve-out allowing judges to approve a settlement on all other issues and defer a determination of the agency's entitlement to reimbursement if the employer agrees to pay the amount subsequently found to be due. 

Failing to cleanly resolve that part of the agreement can be costly for employers.

A WCAB panel decision from 2015 in Borbeck v. Ace Building Maintenance held that an employer was liable for the full amount of EDD's lien because it was not addressed in a settlement agreement.

The failure to resolve a known EDD lien as part of a settlement can lead to only two outcomes, the WCAB said: The lien can either be set for hearing and determination before approval of the settlement or be deferred if the employer accepts liability.

In Borbeck, the employer knew about a lien of more than $33,000 when it submitted the settlement approval on a walk-through basis, and it knew the settlement included a provision saying the defendant agreed to pay, adjust or litigate related liens. 

The WCAB ruled that the settlement language amounted to a deferral with the employer's express agreement to pay the full amount of the EDD lien.