Workers’ compensation: prepaid cards.

Healthcare Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Committee on Insurance (A) - ()
Last action: 2026-04-15
Official status: From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 17. Noes 0.) (April 15). Re-referred to Com. on APPR.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide details on enforcement or monitoring of the extension.

Workers' Compensation: Prepaid Cards

AB-1683 extends the current law allowing employers to use prepaid cards for workers' compensation disability indemnity payments beyond January 1, 2027.

What This Bill Does

Extends the authorization for employers to deposit disability indemnity payments into prepaid card accounts indefinitely.

Who It Names or Affects

Employers who use or plan to use prepaid cards for workers' compensation disability indemnity payments.
Employees receiving disability indemnity payments through prepaid card accounts.

Terms To Know

Workers’ Compensation: A system that provides medical care and financial support to employees injured on the job or their families if an employee dies from a work-related injury.
Prepaid Card Account: An account where funds are loaded onto a card for spending, similar to a debit card but not linked to a traditional bank account.

Limits and Unknowns

Does not specify how the extension will be enforced or monitored.
The bill does not address what happens if an employee prefers cash payments over prepaid cards.

Bill History

2026-04-15 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 17. Noes 0.) (April 15). Re-referred to Com. on APPR.
2026-02-17 California Legislative Information
Referred to Com. on INS.
2026-02-03 California Legislative Information
From printer. May be heard in committee March 5.
2026-02-02 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1683, as introduced, Committee on Insurance.
Workers’ compensation: prepaid cards.
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, which, in the case of the death of an employee, includes a death benefit. Existing law governs temporary and permanent disability indemnity payments and prohibits a payment made by a written instrument unless it is immediately negotiable and payable in cash, among other things. Existing law, until January 1, 2027, allows an employer to commence a program under which disability indemnity payments are deposited in a prepaid card account for employees.
This bill would extend the authorization to deposit indemnity payments in a prepaid card account indefinitely.

Current Bill Text

Read the full stored bill text

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