Bontempo

This case turns on the effect of an amendment to the statutes that govern the permanent disability component of workers’ compensation. Labor Code section 4658 contains several formulas for determining the number of weeks an injured worker will receive permanent disability benefits. In 2004, subdivision (d) was added to section 4658, creating a new formula that applies to injuries occurring on or after January 1, 2005. Included within subdivision (d) are two provisions—subdivision (d)(2) and (3)—that apply to employers of 50 or more persons: subdivision (d)(2) requires permanent disability benefits to be increased by 15 percent if the employer does not offer the injured employee regular work, modified work or alternative work within 60 days of the disability becoming permanent and stationary; subdivision (d)(3) requires permanent disability benefits to be decreased by 15 percent if the employer does offer the injured employee regular work, modified work or alternative work. The parties here, petitioner Don Bontempo and his employer, respondent City of Alhambra (City), stipulated that Bontempo’s employment-related pulmonary condition was permanent and stationary and that he…