Cal. LAB § 3861

This is the official text of Cal. LAB § 3861, part of California’s Labor Code — governs wages, workplace safety, and employee rights.

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Official statutory text

(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 their liability for compensation, such amount of any recovery by the employee for 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, or has not been applied to reimburse the employer.

(b) In a claim subject to subdivision (b) of Section 3852, the employer shall not assert, claim, or enforce any credit or offset against any future workers’ compensation benefits, including, but not limited to, future indemnity, medical, and vocational rehabilitation benefits, based on the employee’s civil recovery from a third-party tortfeasor. The appeals board is not empowered and shall not allow such a credit to be applied to the employer.

Status: in_force · Read it on the official government site

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About this page: Statute text is reproduced from official government publishers via the Open US Law dataset (Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine (Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.