Californias Return-to-Work Supplement Program (RTWSP) is a new benefit for permanently disabled workers who suffer disproportionately high earnings loss in comparison with their workers compensation benefits. The RTWSP provides a one-time $5,000 payment to workers who cannot return to work following a permanently disabling workplace injury. RAND researchers conducted an evaluation of the programs performance and identified options for improving the RTWSP. The study included an environmental scan, stakeholder interviews, and analysis of program data. RAND also held a technical advisory group meeting with key stakeholders. The RTWSP is performing well on several dimensions. The eligibility criteria have accurately targeted workers with more-severe disabilities, and program administration is efficient, with little evidence of fraud or abuse. However, take-up of the program is low: In a sample of eligible workers, just over half applied to receive the benefit.

The most important factor predicting access to the program was legal representation, suggesting that many workers are failing to navigate the process on their own, despite the intent of the programs designers. The authors also found that the eligible population is larger than initially anticipated, a trend driven in part by rising utilization of Californias vocational rehabilitation benefit (the Supplemental Job Displacement Benefit [SJDB]). Based on these findings, the authors recommend that modifications to the RTWSP focus on increasing program take-up among currently eligible workers. Options to increase take-up include making issuance of the Return-to-Work Supplement automatic or improving outreach and notification efforts. The Department of Industrial Relations should also improve monitoring of SJDB voucher issuance to track emerging changes in the RTWSP-eligible population and to facilitate oversight of the SJDB.