What Is California Labor Code §4658.7 — the Supplemental Job Displacement Benefit?

Who qualifies for the §4658.7 California SJDB voucher?

Eligibility requires a permanent disability award and a finding that neither the old job nor modified or alternative work was offered by the employer.

Under California Labor Code §4658.7, a California injured worker qualifies for the SJDB voucher when: the injury has resulted in permanent partial disability; the employer has not offered modified or alternative work meeting the worker's permanent restrictions within 60 days of the worker reaching permanent and stationary status; and the offer (or lack of it) is documented through a Notice of Offer of Regular, Modified, or Alternative Work (Form DWC-AD 10133.35).

What can a California injured worker spend the §4658.7 voucher on?

The voucher covers retraining tuition, books, fees, tools, and licensing costs at an approved California school or training provider, not living expenses.

Under California Labor Code §4658.7, the SJDB voucher can be spent on: tuition, fees, books, and required tools at a California state-approved school; occupational licensing or certification fees; vocational and return-to-work counseling (up to 10% of the voucher); computer equipment (up to $1,000); and a small expense allowance. The voucher cannot be exchanged for cash. The school or training program must be on the approved list maintained by the California Department of Industrial Relations.

When does the §4658.7 voucher actually issue?

The voucher issues automatically once the eligibility conditions are met, the worker does not need to demand it, but carriers routinely delay issuing it.

Under California Labor Code §4658.7, the SJDB voucher must be issued by the California insurer within 20 days after the expiration of the 60-day offer window, that is, when the employer has failed to offer modified or alternative work within 60 days of the worker reaching permanent and stationary status under California Labor Code §4660. The voucher has a 2-year expiration from issuance; the worker must enroll in an approved training program within that window or forfeit the voucher's value.

How does §4658.7 interact with a Compromise & Release settlement?

Section 4658.7 interacts with a Compromise and Release settlement: in a C&R, the parties can negotiate the voucher separately or include a dollar equivalent in the global settlement.

The §4658.7 voucher is a separate benefit from the permanent disability indemnity under California Labor Code §4660. A Compromise & Release lump-sum settlement typically includes a separate line for the SJDB voucher value (often the full $6,000), which the parties can resolve by issuing the voucher itself or by including a stated cash amount in the C&R. Taking cash in lieu of the voucher means the money is reportable income, while the voucher used for training is not.

The DWC's QME directory in 2025 lists approximately 2,800 active California QMEs across all specialties, the panel pool from which §4062.1 and §4062.2 strikes are drawn, with the highest demand in orthopedics, neurology, and psychiatry.

Related reading: California pillar guide · §4660 explainer.

Related on yazdchilaw.com: California workers' compensation lawyer pillar · California Labor Code §3208.3 (mental-stress claim) · California Labor Code §3212.15 explained · workers' comp for mental-health claims in California.