Amended IN Senate March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 487Introduced by Senator GraysonFebruary 19, 2025 An act to amend Section 3860 of Sections 3852, 3858, 3859, 3860, 3861, and 3862 of the Labor Code, relating to workers compensation . compensation.LEGISLATIVE COUNSEL'S DIGESTSB 487, as amended, Grayson. Workers compensation.Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law requires an employer to provide all medical services reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board.Existing law authorizes an employer who pays or becomes obligated to pay compensation, salary in lieu of compensation, or an amount to the Department of Industrial Relations to make a claim or bring an action against a third person who caused the injury or death of an employee that gave rise to the employers obligations. Existing law relieves the employer from an obligation to pay further compensation to or on behalf of the employee if the employer has paid litigation expenses, attorneys fees, and the employers lien. Existing law requires any release or settlement of a claim to include notice to both the employer and employee, as specified, and the written consent of both the employer and employee, in order for the release or settlement to be valid. Existing law authorizes the appeals board to credit the employer with an amount equal to the recovery by the employee that has not been applied to certain expenses, to be applied against the employers liability for compensation, as specified. Existing law authorizes an employer to enforce payment of a lien against a third party, or against the employee, if damages have been paid to the employee, in the manner provided for enforcement of money judgments.This bill would make these provisions inapplicable to employees that are peace officers, as defined, and firefighters.This bill would make technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 3852 of the Labor Code is amended to read:3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect his or her their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Any Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which he or she was they were liable including all salary, wage, pension, or other emolument paid to the employee or to his or her their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not make a claim or bring an action against the third person.SEC. 2. Section 3858 of the Labor Code is amended to read:3858. After (a) Except as provided in subdivision (b), after payment of litigation expenses and attorneys fees fixed by the court pursuant to Section 3856 and payment of the employers lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy his their lien.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not be relieved from the obligation to pay further compensation to or on behalf of the employee.SEC. 3. Section 3859 of the Labor Code is amended to read:3859. (a) No (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law.(2) The written consent of the employer is not needed if the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter.(b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim he they may have against a third party without the consent of the employer. Such Except as provided in paragraph (2), a settlement or release shall be subject to the employers right to proceed to recover compensation he has they have paid in accordance with Section 3852.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid.SECTION 1.SEC. 4. Section 3860 of the Labor Code is amended to read:3860. (a) A (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorneys fees as herein provided.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, and the employer has no right to recover compensation, a release or settlement is valid and binding without notice to the employer.(b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employers full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorneys fees, if any, subject to the limitations in this section set forth.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to reimbursement for compensation they have paid.(c) If settlement is effected, with or without suit, solely through the efforts of the employees attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employees attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(d) If settlement is effected, with or without suit, solely through the efforts of the employers attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employers attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorneys fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorneys fees shall be based on the services rendered for the benefit of both.(f) The amount of expenses and attorneys fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees.SEC. 5. Section 3861 of the Labor Code is amended to read:3861. The (a) Except as provided in subdivision (b), the appeals board is empowered to and shall allow, as a credit to the employer to be applied against his their liability for compensation, such amount of any recovery by the employee for his their injury, either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorneys fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of this code, 3860, or has not been applied to reimburse the employer.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or assert a credit to be applied against their liability for compensation.SEC. 6. Section 3862 of the Labor Code is amended to read:3862. Any (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or enforce a lien. Amended IN Senate March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 487Introduced by Senator GraysonFebruary 19, 2025 An act to amend Section 3860 of Sections 3852, 3858, 3859, 3860, 3861, and 3862 of the Labor Code, relating to workers compensation . compensation.LEGISLATIVE COUNSEL'S DIGESTSB 487, as amended, Grayson. Workers compensation.Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law requires an employer to provide all medical services reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board.Existing law authorizes an employer who pays or becomes obligated to pay compensation, salary in lieu of compensation, or an amount to the Department of Industrial Relations to make a claim or bring an action against a third person who caused the injury or death of an employee that gave rise to the employers obligations. Existing law relieves the employer from an obligation to pay further compensation to or on behalf of the employee if the employer has paid litigation expenses, attorneys fees, and the employers lien. Existing law requires any release or settlement of a claim to include notice to both the employer and employee, as specified, and the written consent of both the employer and employee, in order for the release or settlement to be valid. Existing law authorizes the appeals board to credit the employer with an amount equal to the recovery by the employee that has not been applied to certain expenses, to be applied against the employers liability for compensation, as specified. Existing law authorizes an employer to enforce payment of a lien against a third party, or against the employee, if damages have been paid to the employee, in the manner provided for enforcement of money judgments.This bill would make these provisions inapplicable to employees that are peace officers, as defined, and firefighters.This bill would make technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Amended IN Senate March 24, 2025 Amended IN Senate March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 487 Introduced by Senator GraysonFebruary 19, 2025 Introduced by Senator Grayson February 19, 2025 An act to amend Section 3860 of Sections 3852, 3858, 3859, 3860, 3861, and 3862 of the Labor Code, relating to workers compensation . compensation. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 487, as amended, Grayson. Workers compensation. Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law requires an employer to provide all medical services reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board.Existing law authorizes an employer who pays or becomes obligated to pay compensation, salary in lieu of compensation, or an amount to the Department of Industrial Relations to make a claim or bring an action against a third person who caused the injury or death of an employee that gave rise to the employers obligations. Existing law relieves the employer from an obligation to pay further compensation to or on behalf of the employee if the employer has paid litigation expenses, attorneys fees, and the employers lien. Existing law requires any release or settlement of a claim to include notice to both the employer and employee, as specified, and the written consent of both the employer and employee, in order for the release or settlement to be valid. Existing law authorizes the appeals board to credit the employer with an amount equal to the recovery by the employee that has not been applied to certain expenses, to be applied against the employers liability for compensation, as specified. Existing law authorizes an employer to enforce payment of a lien against a third party, or against the employee, if damages have been paid to the employee, in the manner provided for enforcement of money judgments.This bill would make these provisions inapplicable to employees that are peace officers, as defined, and firefighters.This bill would make technical, nonsubstantive changes to these provisions. Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law requires an employer to provide all medical services reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board. Existing law authorizes an employer who pays or becomes obligated to pay compensation, salary in lieu of compensation, or an amount to the Department of Industrial Relations to make a claim or bring an action against a third person who caused the injury or death of an employee that gave rise to the employers obligations. Existing law relieves the employer from an obligation to pay further compensation to or on behalf of the employee if the employer has paid litigation expenses, attorneys fees, and the employers lien. Existing law requires any release or settlement of a claim to include notice to both the employer and employee, as specified, and the written consent of both the employer and employee, in order for the release or settlement to be valid. Existing law authorizes the appeals board to credit the employer with an amount equal to the recovery by the employee that has not been applied to certain expenses, to be applied against the employers liability for compensation, as specified. Existing law authorizes an employer to enforce payment of a lien against a third party, or against the employee, if damages have been paid to the employee, in the manner provided for enforcement of money judgments. This bill would make these provisions inapplicable to employees that are peace officers, as defined, and firefighters. This bill would make technical, nonsubstantive changes to these provisions. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 3852 of the Labor Code is amended to read:3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect his or her their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Any Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which he or she was they were liable including all salary, wage, pension, or other emolument paid to the employee or to his or her their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not make a claim or bring an action against the third person.SEC. 2. Section 3858 of the Labor Code is amended to read:3858. After (a) Except as provided in subdivision (b), after payment of litigation expenses and attorneys fees fixed by the court pursuant to Section 3856 and payment of the employers lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy his their lien.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not be relieved from the obligation to pay further compensation to or on behalf of the employee.SEC. 3. Section 3859 of the Labor Code is amended to read:3859. (a) No (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law.(2) The written consent of the employer is not needed if the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter.(b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim he they may have against a third party without the consent of the employer. Such Except as provided in paragraph (2), a settlement or release shall be subject to the employers right to proceed to recover compensation he has they have paid in accordance with Section 3852.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid.SECTION 1.SEC. 4. Section 3860 of the Labor Code is amended to read:3860. (a) A (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorneys fees as herein provided.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, and the employer has no right to recover compensation, a release or settlement is valid and binding without notice to the employer.(b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employers full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorneys fees, if any, subject to the limitations in this section set forth.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to reimbursement for compensation they have paid.(c) If settlement is effected, with or without suit, solely through the efforts of the employees attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employees attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(d) If settlement is effected, with or without suit, solely through the efforts of the employers attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employers attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorneys fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorneys fees shall be based on the services rendered for the benefit of both.(f) The amount of expenses and attorneys fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees.SEC. 5. Section 3861 of the Labor Code is amended to read:3861. The (a) Except as provided in subdivision (b), the appeals board is empowered to and shall allow, as a credit to the employer to be applied against his their liability for compensation, such amount of any recovery by the employee for his their injury, either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorneys fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of this code, 3860, or has not been applied to reimburse the employer.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or assert a credit to be applied against their liability for compensation.SEC. 6. Section 3862 of the Labor Code is amended to read:3862. Any (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or enforce a lien. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 3852 of the Labor Code is amended to read:3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect his or her their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Any Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which he or she was they were liable including all salary, wage, pension, or other emolument paid to the employee or to his or her their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not make a claim or bring an action against the third person. SECTION 1. Section 3852 of the Labor Code is amended to read: ### SECTION 1. 3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect his or her their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Any Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which he or she was they were liable including all salary, wage, pension, or other emolument paid to the employee or to his or her their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not make a claim or bring an action against the third person. 3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect his or her their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Any Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which he or she was they were liable including all salary, wage, pension, or other emolument paid to the employee or to his or her their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not make a claim or bring an action against the third person. 3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect his or her their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Any Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which he or she was they were liable including all salary, wage, pension, or other emolument paid to the employee or to his or her their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not make a claim or bring an action against the third person. 3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect his or her their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Any Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which he or she was they were liable including all salary, wage, pension, or other emolument paid to the employee or to his or her their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court. (b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not make a claim or bring an action against the third person. SEC. 2. Section 3858 of the Labor Code is amended to read:3858. After (a) Except as provided in subdivision (b), after payment of litigation expenses and attorneys fees fixed by the court pursuant to Section 3856 and payment of the employers lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy his their lien.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not be relieved from the obligation to pay further compensation to or on behalf of the employee. SEC. 2. Section 3858 of the Labor Code is amended to read: ### SEC. 2. 3858. After (a) Except as provided in subdivision (b), after payment of litigation expenses and attorneys fees fixed by the court pursuant to Section 3856 and payment of the employers lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy his their lien.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not be relieved from the obligation to pay further compensation to or on behalf of the employee. 3858. After (a) Except as provided in subdivision (b), after payment of litigation expenses and attorneys fees fixed by the court pursuant to Section 3856 and payment of the employers lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy his their lien.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not be relieved from the obligation to pay further compensation to or on behalf of the employee. 3858. After (a) Except as provided in subdivision (b), after payment of litigation expenses and attorneys fees fixed by the court pursuant to Section 3856 and payment of the employers lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy his their lien.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not be relieved from the obligation to pay further compensation to or on behalf of the employee. 3858. After (a) Except as provided in subdivision (b), after payment of litigation expenses and attorneys fees fixed by the court pursuant to Section 3856 and payment of the employers lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy his their lien. (b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer shall not be relieved from the obligation to pay further compensation to or on behalf of the employee. SEC. 3. Section 3859 of the Labor Code is amended to read:3859. (a) No (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law.(2) The written consent of the employer is not needed if the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter.(b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim he they may have against a third party without the consent of the employer. Such Except as provided in paragraph (2), a settlement or release shall be subject to the employers right to proceed to recover compensation he has they have paid in accordance with Section 3852.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid. SEC. 3. Section 3859 of the Labor Code is amended to read: ### SEC. 3. 3859. (a) No (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law.(2) The written consent of the employer is not needed if the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter.(b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim he they may have against a third party without the consent of the employer. Such Except as provided in paragraph (2), a settlement or release shall be subject to the employers right to proceed to recover compensation he has they have paid in accordance with Section 3852.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid. 3859. (a) No (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law.(2) The written consent of the employer is not needed if the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter.(b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim he they may have against a third party without the consent of the employer. Such Except as provided in paragraph (2), a settlement or release shall be subject to the employers right to proceed to recover compensation he has they have paid in accordance with Section 3852.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid. 3859. (a) No (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law.(2) The written consent of the employer is not needed if the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter.(b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim he they may have against a third party without the consent of the employer. Such Except as provided in paragraph (2), a settlement or release shall be subject to the employers right to proceed to recover compensation he has they have paid in accordance with Section 3852.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid. 3859. (a) No (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law. (2) The written consent of the employer is not needed if the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter. (b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim he they may have against a third party without the consent of the employer. Such Except as provided in paragraph (2), a settlement or release shall be subject to the employers right to proceed to recover compensation he has they have paid in accordance with Section 3852. (2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid. SECTION 1.SEC. 4. Section 3860 of the Labor Code is amended to read:3860. (a) A (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorneys fees as herein provided.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, and the employer has no right to recover compensation, a release or settlement is valid and binding without notice to the employer.(b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employers full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorneys fees, if any, subject to the limitations in this section set forth.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to reimbursement for compensation they have paid.(c) If settlement is effected, with or without suit, solely through the efforts of the employees attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employees attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(d) If settlement is effected, with or without suit, solely through the efforts of the employers attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employers attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorneys fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorneys fees shall be based on the services rendered for the benefit of both.(f) The amount of expenses and attorneys fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees. SECTION 1.SEC. 4. Section 3860 of the Labor Code is amended to read: ### SECTION 1.SEC. 4. 3860. (a) A (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorneys fees as herein provided.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, and the employer has no right to recover compensation, a release or settlement is valid and binding without notice to the employer.(b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employers full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorneys fees, if any, subject to the limitations in this section set forth.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to reimbursement for compensation they have paid.(c) If settlement is effected, with or without suit, solely through the efforts of the employees attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employees attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(d) If settlement is effected, with or without suit, solely through the efforts of the employers attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employers attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorneys fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorneys fees shall be based on the services rendered for the benefit of both.(f) The amount of expenses and attorneys fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees. 3860. (a) A (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorneys fees as herein provided.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, and the employer has no right to recover compensation, a release or settlement is valid and binding without notice to the employer.(b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employers full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorneys fees, if any, subject to the limitations in this section set forth.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to reimbursement for compensation they have paid.(c) If settlement is effected, with or without suit, solely through the efforts of the employees attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employees attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(d) If settlement is effected, with or without suit, solely through the efforts of the employers attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employers attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorneys fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorneys fees shall be based on the services rendered for the benefit of both.(f) The amount of expenses and attorneys fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees. 3860. (a) A (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorneys fees as herein provided.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, and the employer has no right to recover compensation, a release or settlement is valid and binding without notice to the employer.(b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employers full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorneys fees, if any, subject to the limitations in this section set forth.(2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to reimbursement for compensation they have paid.(c) If settlement is effected, with or without suit, solely through the efforts of the employees attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employees attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(d) If settlement is effected, with or without suit, solely through the efforts of the employers attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employers attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee.(e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorneys fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorneys fees shall be based on the services rendered for the benefit of both.(f) The amount of expenses and attorneys fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees. 3860. (a) A (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorneys fees as herein provided. (2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, and the employer has no right to recover compensation, a release or settlement is valid and binding without notice to the employer. (b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employers full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorneys fees, if any, subject to the limitations in this section set forth. (2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to reimbursement for compensation they have paid. (c) If settlement is effected, with or without suit, solely through the efforts of the employees attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employees attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee. (d) If settlement is effected, with or without suit, solely through the efforts of the employers attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorneys fees to be paid to the employers attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee. (e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorneys fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorneys fees shall be based on the services rendered for the benefit of both. (f) The amount of expenses and attorneys fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees. SEC. 5. Section 3861 of the Labor Code is amended to read:3861. The (a) Except as provided in subdivision (b), the appeals board is empowered to and shall allow, as a credit to the employer to be applied against his their liability for compensation, such amount of any recovery by the employee for his their injury, either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorneys fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of this code, 3860, or has not been applied to reimburse the employer.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or assert a credit to be applied against their liability for compensation. SEC. 5. Section 3861 of the Labor Code is amended to read: ### SEC. 5. 3861. The (a) Except as provided in subdivision (b), the appeals board is empowered to and shall allow, as a credit to the employer to be applied against his their liability for compensation, such amount of any recovery by the employee for his their injury, either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorneys fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of this code, 3860, or has not been applied to reimburse the employer.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or assert a credit to be applied against their liability for compensation. 3861. The (a) Except as provided in subdivision (b), the appeals board is empowered to and shall allow, as a credit to the employer to be applied against his their liability for compensation, such amount of any recovery by the employee for his their injury, either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorneys fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of this code, 3860, or has not been applied to reimburse the employer.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or assert a credit to be applied against their liability for compensation. 3861. The (a) Except as provided in subdivision (b), the appeals board is empowered to and shall allow, as a credit to the employer to be applied against his their liability for compensation, such amount of any recovery by the employee for his their injury, either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorneys fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of this code, 3860, or has not been applied to reimburse the employer.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or assert a credit to be applied against their liability for compensation. 3861. The (a) Except as provided in subdivision (b), the appeals board is empowered to and shall allow, as a credit to the employer to be applied against his their liability for compensation, such amount of any recovery by the employee for his their injury, either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorneys fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of this code, 3860, or has not been applied to reimburse the employer. (b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or assert a credit to be applied against their liability for compensation. SEC. 6. Section 3862 of the Labor Code is amended to read:3862. Any (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or enforce a lien. SEC. 6. Section 3862 of the Labor Code is amended to read: ### SEC. 6. 3862. Any (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or enforce a lien. 3862. Any (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or enforce a lien. 3862. Any (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally.(b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or enforce a lien. 3862. Any (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally. (b) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, the employer has no right to recover compensation they have paid or enforce a lien.