Labor Code section 3858
(a)
Except as provided in subdivision (b), after payment of litigation expenses and attorney’s fees fixed by the court pursuant to Section 3856 and payment of the employer’s lien, the employer shall be relieved from the obligation to pay further compensation to or on behalf of the employee under this division up to the entire amount of the balance of the judgment, if satisfied, without any deduction. No satisfaction of such judgment in whole or in part, shall be valid without giving the employer notice and a reasonable opportunity to perfect and satisfy their lien.(b)
In any case governed by subdivision (b) of Section 3852, the employer’s lien or subrogation rights shall be limited to the portion of the recovery allocated to the employer and the employer shall have no right to assert any credit or offset against future workers’ compensation benefits owed to the employee, including, but not limited to, temporary disability, permanent disability, medical treatment, or vocational rehabilitation. The recovery allocated to the employer under subdivision (b) of Section 3852 shall not affect or diminish the employer’s obligation to provide any compensation under this division.
Source:
Section 3858, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB§ionNum=3858. (updated Jan. 1, 2026; accessed Dec. 15, 2025).
