What Does Labor Code §4061 Say?
California Labor Code §4061:
“Together with the last payment of temporary disability indemnity, the employer shall provide the employee with a form prescribed by the administrative director and an advisory statement that permanent disability indemnity may be due. If the employee is not represented and there is a disagreement, the dispute shall be resolved pursuant to Section 4062.1. If the employee is represented and there is a dispute, the dispute shall be resolved pursuant to Section 4062.2.”
What It Means for Injured Workers
Labor Code §4061 governs what happens when there is a dispute over permanent disability (PD)—either the percentage of impairment or whether the injured worker has reached Maximum Medical Improvement (MMI). This provision is critical, because your PD rating determines how much compensation you receive after you’re done healing.
Whether you’re dealing with a low rating or an employer who says you’re not entitled to PD at all, §4061 outlines how these disputes must be handled depending on whether you’re represented by an attorney.
Key Points Under Labor Code §4061:
- Your employer (or their insurer) must inform you at the end of your Temporary Disability (TD) payments that PD may be owed.
- If you’re not represented by an attorney, the QME process follows Labor Code §4062.1.
- If you are represented, the process falls under Labor Code §4062.2, which provides a framework for choosing a panel QME or Agreed Medical Evaluator (AME).
- The goal of §4061 is to ensure due process when workers and employers disagree about the extent of permanent injury.
Common Disputes Involving Labor Code §4061:
- Premature declaration of MMI to limit benefits
- Understated impairment ratings that reduce your PD compensation
- Disputes over apportionment, blaming part of your disability on pre-existing conditions
- Psychiatric or pain-related impairments being excluded from PD calculation
- Lack of disclosure about your right to dispute the PD determination
How EFLL Fights for Fair PD Ratings
At Employees First Labor Law, we help you:
- Challenge low PD ratings through panel QME or AME evaluations
- Fight premature MMI designations
- Ensure that all impairments—physical, neurological, and psychiatric—are considered
- Contest apportionment based on improper or speculative medical reasoning
- Negotiate settlements based on accurate and fully documented medical evidence
Learn More:
📚 Want to see how §4061 fits into the bigger picture?
Check out our full guide: Top 25 Labor Codes in California Workers’ Comp
Final Thoughts
If your temporary disability payments are ending and your employer is rushing you to accept a low PD rating, don’t sign anything until you understand your rights. Labor Code §4061 gives you the opportunity to challenge an unfair outcome—and EFLL is here to guide you every step of the way.
