California is paying out billions annually through a little-known state workers\u2019 compensation program for conditions that include sexual dysfunction, allergies and other chronic ailments \u2014 leaving Gov. Gavin Newsom and state lawmakers scrambling to revamp the troubled program. <\/p>\n
Called the Subsequent Injuries Benefits Trust Fund, the program provides extra benefits to employees covered by state workers\u2019 compensation who sustain an on-the-job injury.<\/a> <\/p>\n But critics say the benefit, which is funded by taxes on employers, has spiraled wildly out of control as workers claim hefty payments of $1,700 per week for conditions such as \u201chypertension, sleep apnea, arthritis, diabetes, headaches, acid reflux, asthma, allergies, and sexual dysfunction,\u201d according to an audit published last year<\/a>. <\/p>\n \u201cNearly all claimants receive the state\u2019s most generous disability benefit, $1,700 per week for life, a rarity in standard workers\u2019 compensation,\u201d wrote the state Legislative Analyst in a June 2025 report. <\/p>\n Newsom\u2019s office has called the program \u201cunsustainable.\u201d AP<\/p>\n The fund was first established in the 1940s to encourage hiring of World War II veterans<\/a> and others with disabilities. <\/p>\n However, thanks in part to a 2020 federal court decision, Todd v. AIBTF, the number of claims and total costs have skyrocketed.<\/p>\n The California Courts of Appeal decision required a generous interpretation of disability claims<\/a> \u2014 spiking annual employer costs to between $2\u00a0billion and $3\u00a0billion, the audit noted.<\/p>\n Additionally, a growing backlog could push total liabilities past $20 billion within \u201ca few years.\u201d <\/p>\n In one instance, a California prison guard was able to claim $1.9 million in lifetime benefits, or $1,284 a week, because he tacked on other ailments \u2014 including toe fungus and eczema \u2014 as work-disabling conditions on top of spinal problems that earned him a standard workers\u2019 compensation benefit, according to a report in the Orange County Register.<\/a><\/p>\n Many applicants are awarded a 100% \u201cdisability rating\u201d \u2014 enabling them to claim lifetime disability benefits, according to the Legislative Analyst.<\/p>\n Applicants can be awarded a \u201ctotal disability\u201d rating based on dubious ailments like allergies, according to an audit. <\/p>\n \u201cAs benefits grew, so did new claims, with individuals seeking\u00a0substantial enhancement to\u00a0benefits due to\u00a0combinations of\u00a0pre-existing conditions like acid reflux, migraines, sleep apnea, and a host of other conditions that are commonly associated with aging and lifestyle, not necessarily workplace injuries,\u201d wrote Eric Lawyer of the California Association of Counties in a March blog post. <\/a><\/p>\n The skyrocketing costs have strained county employers \u2014 Los Angeles County, for example, is on the book for $11.8 million annually in assessments towards the disability claims, an increase of 433% since 2020<\/a>. <\/p>\n