SUBROGATION RECEIPTS - 8285

(Revised and renumbered from 8775)

Subrogation is a legal right afforded to insurers (i.e., State Compensation Insurance Fund) to seek reimbursement for losses they have paid by billing or seeking legal action against the parties that caused the losses.

Pursuant to Labor Code Sections 3850–3865, the state may recover compensation benefits and other damages they have paid from a third party liable for the injury or death of a State employee. Amounts recovered by way of subrogation are the result of actions taken by the State Compensation Insurance Fund. Any amounts owing to employing agencies/departments will be credited to the proper appropriation as abatements. The restoration of leave credits to employee’s records from third-party recoveries will be at the direction of the State Compensation Insurance Fund. See SAM section 8537.