CA SB487

Limits employers of peace officers and firefighters (employed by cities, counties, or fire protection districts) to receiving no more than one-third of a third-party defendant's liability insurance policy limits when the employee's total damages exceed available recovery and insurance limits are insufficient to fully compensate both parties

Prohibits employers from asserting any credit or offset against future workers' compensation benefits (including temporary disability, permanent disability, medical treatment, or vocational rehabilitation) based on an injured peace officer's or firefighter's civil recovery from a third party

Removes the requirement for employer written consent in third-party claim settlements involving peace officers and firefighters covered under these provisions

Makes employer reimbursement and subrogation rights subordinate to the one-third maximum allocation cap, which applies to all settlement agreements and judgments

Approved by Governor on October 13, 2025, and amends Labor Code Sections 3852, 3858, 3859, 3860, 3861, and 3862