Labor Code — Part 7 | LAB — United States — California law | Esheria

Labor Code

Part 7 of 13 · provisions 1,201–1,400

This section says the act is to be known as the Labor Code.

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About this statute

This section points to other code provisions that govern preferred claims for work performed or personal services rendered. This section says the act is named the Promote Ownership by Workers for Economic Recovery Act and may be cited by that name. This section states legislative findings about worker cooperatives and says the Legislature wants to study whether a federated worker cooperative system could help advance the goals of the Future of Work Commission. This section defines two terms used in the division: “Association” and “Secretary.” A state panel must conduct a study on creating an Association of Cooperative Labor Contractors and publish it online by June 30, 2024.

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Provisions of Labor Code

Showing 200 of 2,599

  1. 3352.94.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    This section excludes certain disaster service workers from the definition of “employee,” with two stated exceptions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3352.94. “Employee” excludes a disaster service worker while performing services as a disaster service worker except as provided in Chapter 10 of this part. “Employee” excludes any unregistered person performing like services as a disaster service worker without pay or other consideration, except as provided by Section 3211.92 of this code. (Amended by Stats. 1951, Ch. 1440.)
  2. 3353.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    This section defines “independent contractor” as a person who provides service for a specified payment and result, with the principal controlling only the result, not the means.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3353. “Independent contractor” means any person who renders service for a specified recompense for a specified result, under the control of his principal as to the result of his work only and not as to the means by which such result is accomplished. (Enacted by Stats. 1937, Ch. 90.)
  3. 3354.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Some employers are exempt from certain workers’ compensation enforcement penalties for failing to secure compensation for covered employees.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3354. Employers of employees defined by subdivision (d) of Section 3351 shall not be subject to the provisions of Sections 3710, 3710.1, 3710.2, 3711, 3712, and 3722, or any other penalty provided by law, for failure to secure the payment of compensation for such employees. This section shall not apply to employers of employees specified in subdivision (b) of Section 3715, with respect to such employees. (Repealed and added by Stats. 1977, Ch. 17.)
  4. 3355.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    This section defines “course of trade, business, profession, or occupation” to include services that help preserve, maintain, or operate the employer’s business, business premises, or business property.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3355. As used in subdivision (d) of Section 3351, the term “course of trade, business, profession, or occupation” includes all services tending toward the preservation, maintenance, or operation of the business, business premises, or business property of the employer. (Added by Stats. 1977, Ch. 17.)
  5. 3356.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    For certain employee-classification provisions, “trade, business, profession, or occupation” includes any undertaking the employer actually carries on with some regularity.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3356. As used in subdivision (d) of Section 3351 and in Section 3355, the term “trade, business, profession, or occupation” includes any undertaking actually engaged in by the employer with some degree of regularity, irrespective of the trade name, articles of incorporation, or principal business of the employer. (Added by Stats. 1977, Ch. 17.)
  6. 3357.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    A person who renders service for another is presumed to be an employee unless they are an independent contractor or are expressly excluded.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3357. Any person rendering service for another, other than as an independent contractor, or unless expressly excluded herein, is presumed to be an employee. (Enacted by Stats. 1937, Ch. 90.)
  7. 3358.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Watchmen for nonindustrial establishments paid by subscription by several persons are not treated as employees under this division.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3358. Watchmen for nonindustrial establishments, paid by subscription by several persons, are not employees under this division. In other cases where watchmen, paid by subscription by several persons, have at the time of the injury sustained by them taken out and maintained in force insurance upon themselves as self-employing persons, conferring benefits equal to those conferred by this division, the employer is not liable under this division. (Enacted by Stats. 1937, Ch. 90.)
  8. 3360.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Certain workmen in a partnership agreement are treated as employees of the person who has the work done. If they keep insurance in force that gives identical benefits, that person is not liable as an employer under this division for injuries during that time.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3360. Workmen associating themselves under a partnership agreement, the principal purpose of which is the performance of the labor on a particular piece of work are employees of the person having such work executed. In respect to injuries which occur while such workmen maintain in force insurance in an insurer, insuring to themselves and all persons employed by them benefits identical with those conferred by this division the person for whom such work is to be done is not liable as an employer under this division. (Enacted by Stats. 1937, Ch. 90.)
  9. 3361.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Certain active members of qualifying volunteer fire departments are treated as employees of the county, city, town, or district and may receive compensation under this division.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3361. Each member registered as an active firefighting member of any regularly organized volunteer fire department, having official recognition, and full or partial support of the government of the county, city, town, or district in which the volunteer fire department is located, is an employee of that county, city, town, or district for the purposes of this division, and is entitled to receive compensation from the county, city, town or district in accordance with the provisions thereof. (Amended by Stats. 1984, Ch. 114, Sec. 3.)
  10. 3361.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Some authorized volunteers for a recreation and park district can be treated as employees for workers’ compensation if the board adopts a resolution.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3361.5. Notwithstanding Section 3351, a volunteer, unsalaried person authorized by the governing board of a recreation and park district to perform volunteer services for the district shall, upon the adoption of a resolution of the governing board of the district so declaring, be deemed an employee of the district for the purposes of this division and shall be entitled to the workers’ compensation benefits provided by this division for any injury sustained by him or her while engaged in the performance of any service under the direction and control of the governing board of the recreation and park district. (Amended by Stats. 1982, Ch. 454, Sec. 134.)
  11. 3362.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Certain registered active police officers are treated as employees for this division if the local governing body adopts a resolution, and they are entitled to compensation from the county, city, town, or district.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3362. Each male or female member registered as an active policeman or policewoman of any regularly organized police department having official recognition and full or partial support of the government of the county, city, town or district in which such police department is located, shall, upon the adoption of a resolution by the governing body of the county, city, town or district so declaring, be deemed an employee of such county, city, town or district for the purpose of this division and shall be entitled to receive compensation from such county, city, town or district in accordance with the provisions thereof. (Added by Stats. 1959, Ch. 1650.)
  12. 3362.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Certain deputized or appointed reserve or auxiliary peace officers are treated as employees of the local public entity while performing peace officer duties, unless they are serving as disaster service workers.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3362.5. Whenever any qualified person is deputized or appointed by the proper authority as a reserve or auxiliary sheriff or city police officer, a deputy sheriff, or a reserve police officer of a regional park district or a transit district, and is assigned specific police functions by that authority, the person is an employee of the county, city, city and county, town, or district for the purposes of this division while performing duties as a peace officer if the person is not performing services as a disaster service worker for purposes of Chapter 10 (commencing with Section 4351). (Added by Stats. 1989, Ch. 892, Sec. 25.5.)
  13. 3363.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Certain registered active reserve fish and game warden program members are treated as employees of the Department of Fish and Game and may receive compensation from the department.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3363. Each member registered with the Department of Fish and Game as an active member of the reserve fish and game warden program of the department is an employee of the department for the purposes of this division, and is entitled to receive compensation from the department in accordance with the provisions thereof. (Added by Stats. 1961, Ch. 1394.)
  14. 3363.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    A person doing authorized volunteer work without pay for a public agency can be treated as an employee if the agency’s governing body adopts a resolution saying so.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3363.5. (a) Notwithstanding Sections 3351, 3352, and 3357, a person who performs voluntary service without pay for a public agency, as designated and authorized by the governing body of the agency or its designee, shall, upon adoption of a resolution by the governing body of the agency so declaring, be deemed to be an employee of the agency for purposes of this division while performing such service. (b) For purposes of this section, “voluntary service without pay” shall include services performed by any person, who receives no remuneration other than meals, transportation, lodging, or reimbursement for incidental expenses. (Amended by Stats. 1979, Ch. 76.)
  15. 3363.6.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    Some unpaid volunteers for a private nonprofit are treated as employees for this division if the board authorizes them and declares it in writing before an injury.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3363.6. (a) Notwithstanding Sections 3351, 3352, and 3357, a person who performs voluntary service without pay for a private, nonprofit organization, as designated and authorized by the board of directors of the organization, shall, when the board of directors of the organization, in its sole discretion, so declares in writing and prior to the injury, be deemed an employee of the organization for purposes of this division while performing such service. (b) For purposes of this section, “voluntary service without pay” shall include the performance of services by a parent, without remuneration in cash, when rendered to a cooperative parent participation nursery school if such service is required as a condition of participation in the organization. (c) For purposes of this section, “voluntary service without pay” shall include the performance of services by a person who receives no remuneration other than meals, transportation, lodging, or reimbursement for incidental expenses. (Amended by Stats. 1979, Ch. 76.)
  16. 3364.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    A qualifying sheriff’s reserve volunteer can become entitled to workers’ compensation benefits if the board of supervisors adopts the required resolution.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3364. Notwithstanding paragraph (3) of subdivision (a) of Section 3352, a volunteer, unsalaried member of a sheriff’s reserve in any county who is not deemed an employee of the county under Section 3362.5, shall, upon the adoption of a resolution of the board of supervisors declaring that the member is deemed an employee of the county for the purposes of this division, be entitled to the workers’ compensation benefits provided by this division for any injury sustained by him or her while engaged in the performance of any active law enforcement service under the direction and control of the sheriff. (Amended by Stats. 2017, Ch. 770, Sec. 5. (SB 189) Effective January 1, 2018.)
  17. 3364.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    A qualifying volunteer for a school district or county superintendent is treated as an employee for this division and may receive workers’ compensation benefits if injured while performing services under their direction and control.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3364.5. Notwithstanding Section 3351 of the Labor Code, a volunteer, unsalaried person authorized by the governing board of a school district or the county superintendent of schools to perform volunteer services for the school district or the county superintendent shall, upon the adoption of a resolution of the governing board of the school district or the county board of education so declaring, be deemed an employee of the district or the county superintendent for the purposes of this division and shall be entitled to the workmen’s compensation benefits provided by this division for any injury sustained by him while engaged in the performance of any service under the direction and control of the governing board of the school district or the county superintendent. (Amended by Stats. 1968, Ch. 1146.)
  18. 3364.55.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    A juvenile court ward doing unpaid rehabilitative work on a public project can receive workers’ compensation benefits if the board of supervisors adopts a resolution treating the ward as a county employee.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3364.55. A ward of the juvenile court engaged in rehabilitative work without pay, under an assignment by order of the juvenile court to a work project on public property within the jurisdiction of any governmental entity, including the federal government, shall, upon the adoption of a resolution of the board of supervisors declaring that such ward is deemed an employee of the county for purposes of this division, be entitled to the workers’ compensation benefits provided by this division for injury sustained while in the performance of such assigned work project, provided: (a) That such ward shall not be entitled to any temporary disability indemnity benefits. (b) That in determining permanent disability benefits, average weekly earnings shall be taken at the minimum provided therefor in Section 4453. (Amended by Stats. 1976, Ch. 1347.)
  19. 3364.6.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Certain juvenile traffic offenders and juvenile probationers doing unpaid rehabilitative work can get workers’ compensation benefits if the board of supervisors adopts the required resolution.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3364.6. Notwithstanding Sections 3351 and 3352, juvenile traffic offenders pursuant to Section 564 of the Welfare and Institutions Code, or juvenile probationers pursuant to subdivision (a) of Section 725 of the Welfare and Institutions Code, engaged in rehabilitative work without pay, under an assignment by order of the juvenile court to a work project on public property within the jurisdiction of any governmental entity, including the federal government, shall, upon the adoption of a resolution of the board of supervisors declaring that such traffic offenders or probationers, or both such groups, shall be deemed employees of the county for purposes of this division, be entitled to the workers’ compensation benefits provided by this division for injury sustained while in the performance of such assigned work project, provided: (a) That such traffic offender or probationer shall not be entitled to any temporary disability indemnity benefits. (b) That in determining permanent disability benefits, average weekly earnings shall be taken at the minimum provided therefor in Section 4453. (Added by Stats. 1976, Ch. 428.)
  20. 3364.7.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Certain juvenile court wards doing unpaid rehabilitative work on public property may receive workers’ compensation benefits if the board of supervisors adopts the required resolution; they do not get disability indemnity benefits.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3364.7. Notwithstanding Sections 3351 and 3352, a ward of the juvenile court committed to a regional youth educational facility pursuant to Article 24.5 (commencing with Section 894), engaged in rehabilitative work without pay on public property within the jurisdiction of any governmental entity, including the federal government, shall, upon the adoption of a resolution of the board of supervisors declaring that such wards shall be deemed employees of the county for purposes of this division, be entitled to the workers’ compensation benefits provided by this division for injury sustained while in the performance of such public work project, provided: (a) That the ward shall not be entitled to any disability indemnity benefits. (b) That in determining permanent disability benefits, average weekly earnings shall be taken at the minimum provided therefor in Section 4453. (Added by Stats. 1984, Ch. 1455, Sec. 4. Effective September 26, 1984.)
  21. 3365.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Some people fighting fires are treated as public-entity employees and can receive workers’ compensation, but there are exceptions for armed forces members and certain aircraft contractors.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3365. For the purposes of this division: (a) Except as provided in subdivisions (b) and (c), each person engaged in suppressing a fire pursuant to Section 4153 or 4436 of the Public Resources Code, and each person (other than an independent contractor or an employee of an independent contractor) engaged in suppressing a fire at the request of a public officer or employee charged with the duty of preventing or suppressing fires, is deemed, except when the entity is the United States or an agency thereof, to be an employee of the public entity that he is serving or assisting in the suppression of the fire, and is entitled to receive compensation from such public entity in accordance with the provisions of this division. When the entity being served is the United States or an agency thereof, the State Department of Corrections shall be deemed the employer and the cost of workers’ compensation may be considered in fixing the reimbursement paid by the United States for the service of prisoners. A person is engaged in suppressing a fire only during the period he (1) is actually fighting the fire, (2) is being transported to or from the fire, or (3) is engaged in training exercises for fire suppression. (b) A member of the armed forces of the United States while serving under military command in suppressing a fire is not an employee of a public entity. (c) Neither a person who contracts to furnish aircraft with pilots to a public entity for fire prevention or suppression service, nor his employees, shall be deemed to be employees of the public entity; but a person who contracts to furnish aircraft to a public entity for fire prevention or suppression service and to pilot the aircraft himself shall be deemed to be an employee of the public entity. (Amended by Stats. 1976, Ch. 1347.)
  22. 3366.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Some people helping in active law enforcement service are treated as employees of the public entity they serve and can receive compensation; certain out-of-state officers are excluded.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3366. (a) For the purposes of this division, each person engaged in the performance of active law enforcement service as part of the posse comitatus or power of the county, and each person (other than an independent contractor or an employee of an independent contractor) engaged in assisting any peace officer in active law enforcement service at the request of such peace officer, is deemed to be an employee of the public entity that he or she is serving or assisting in the enforcement of the law, and is entitled to receive compensation from the public entity in accordance with the provisions of this division. (b) Nothing in this section shall be construed to provide workers’ compensation benefits to a person who is any of the following: (1) A law enforcement officer who is regularly employed by a local or state law enforcement agency in an adjoining state and who is deputized to work under the supervision of a California peace officer pursuant to paragraph (4) of subdivision (a) of Section 832.6 of the Penal Code. (2) A law enforcement officer who is regularly employed by the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety and who is acting as a peace officer in this state pursuant to subdivision (a) of Section 830.32 of the Penal Code. (Amended by Stats. 1989, Ch. 594, Sec. 3.)
  23. 3367.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    A person who voluntarily helps a public entity at the request of an authorized fire or law enforcement officer is treated as an employee for this division and may receive workers’ compensation benefits.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3367. (a) For purposes of this division any person voluntarily rendering technical assistance to a public entity to prevent a fire, explosion, or other hazardous occurrence, at the request of a duly authorized fire or law enforcement officer of that public entity is deemed an employee of the public entity to whom the technical assistance was rendered, and is entitled to receive compensation benefits in accordance with the provisions of this division. Rendering technical assistance shall include the time that person is traveling to, or returning from, the location of the potentially hazardous condition for which he or she has been requested to volunteer his or her assistance. (b) Nothing in this section shall be construed to provide workers’ compensation benefits to a person who is any of the following: (1) A law enforcement officer who is regularly employed by a local or state law enforcement agency in an adjoining state and who is deputized to work under the supervision of a California peace officer pursuant to paragraph (4) of subdivision (a) of Section 832.6 of the Penal Code. (2) A law enforcement officer who is regularly employed by the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety and who is acting as a peace officer in this state pursuant to subdivision (a) of Section 830.32 of the Penal Code. (Amended by Stats. 1989, Ch. 594, Sec. 4.)
  24. 3368.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Certain school authorities are treated as the employer for workers’ compensation purposes for students in specified work experience and apprenticeship programs, unless a private employer is paying wages.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3368. Notwithstanding any provision of this code or the Education Code to the contrary, the school district, county superintendent of schools, or any school administered by the State Department of Education under whose supervision work experience education, cooperative vocational education, or community classrooms, as defined by regulations adopted by the Superintendent of Public Instruction, or student apprenticeship programs registered by the Division of Apprenticeship Standards for registered student apprentices, are provided, shall be considered the employer under Division 4 (commencing with Section 3200) of persons receiving this training unless the persons during the training are being paid a cash wage or salary by a private employer. However, in the case of students being paid a cash wage or salary by a private employer in supervised work experience education or cooperative vocational education, or in the case of registered student apprentices, the school district, county superintendent of schools, or any school administered by the State Department of Education may elect to provide workers’ compensation coverage, unless the person or firm under whom the persons are receiving work experience or occupational training elects to provide workers’ compensation coverage. If the school district or other educational agency elects to provide workers’ compensation coverage for students being paid a cash wage or salary by a private employer in supervised work experience education or cooperative vocational education, it may only be for a transitional period not to exceed three months. A registered student apprentice is a registered apprentice who is (1) at least 16 years of age, (2) a full-time high school student in the 10th, 11th, or 12th grade, and (3) in an apprenticeship program for registered student apprentices registered with the Division of Apprenticeship Standards. An apprentice, while attending related and supplemental instruction classes, shall be considered to be in the employ of the apprentice’s employer and not subject to this section, unless the apprentice is unemployed. Whenever this work experience education, cooperative vocational education, community classroom education, or student apprenticeship program registered by the Division of Apprenticeship Standards for registered student apprentices, is under the supervision of a regional occupational center or program operated by two or more school districts pursuant to Section 52301 of the Education Code, the district of residence of the persons receiving the training shall be deemed the employer for the purposes of this section. (Amended by Stats. 1998, Ch. 541, Sec. 1. Effective January 1, 1999.)
  25. 3369.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Being covered by this division does not automatically make a person or group covered by another statute unless that other statute expressly says so.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3369. The inclusion of any person or groups of persons within the coverage of this division shall not cause any such person or group of persons to be within the coverage of any other statute unless any other such statute expressly so provides. (Added by Stats. 1974, Ch. 966.)
  26. 3370.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Inmates in state penal or correctional institutions can receive workers’ compensation benefits for assigned work injuries or death, but payment is restricted during incarceration and subject to listed conditions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3370. (a) Each inmate of a state penal or correctional institution shall be entitled to the workers’ compensation benefits provided by this division for injury arising out of and in the course of assigned employment and for the death of the inmate if the injury proximately causes death, subject to all of the following conditions: (1) The inmate was not injured as the result of an assault in which the inmate was the initial aggressor, or as the result of the intentional act of the inmate injuring himself or herself. (2) The inmate shall not be entitled to any temporary disability indemnity benefits while incarcerated in a state prison. (3) No benefits shall be paid to an inmate while he or she is incarcerated. The period of benefit payment shall instead commence upon release from incarceration. If an inmate who has been released from incarceration, and has been receiving benefits under this section, is reincarcerated in a city or county jail, or state penal or correctional institution, the benefits shall cease immediately upon the inmate’s reincarceration and shall not be paid for the duration of the reincarceration. (4) This section shall not be construed to provide for the payment to an inmate, upon release from incarceration, of temporary disability benefits which were not paid due to the prohibition of paragraph (2). (5) In determining temporary and permanent disability indemnity benefits for the inmate, the average weekly earnings shall be taken at not more than the minimum amount set forth in Section 4453. (6) Where a dispute exists respecting an inmate’s rights to the workers’ compensation benefits provided herein, the inmate may file an application with the appeals board to resolve the dispute. The application may be filed at any time during the inmate’s incarceration. (7) After release or discharge from a correctional institution, the former inmate shall have one year in which to file an original application with the appeals board, unless the time of injury is such that it would allow more time under Section 5804 of the Labor Code. (8) The percentage of disability to total disability shall be determined as for the occupation of a laborer of like age by applying the schedule for the determination of the percentages of permanent disabilities prepared and adopted by the administrative director. (9) This division shall be the exclusive remedy against the state for injuries occurring while engaged in assigned work or work under contract. Nothing in this division shall affect any right or remedy of an injured inmate for injuries not compensated by this division. (b) The Department of Corrections shall present to each inmate of a state penal or correctional institution, prior to his or her first assignment to work at the institution, a printed statement of his or her rights under this division, and a description of procedures to be followed in filing for benefits under this section. The statement shall be approved by the administrative director and be posted in a conspicuous place at each place where an inmate works. (c) Notwithstanding any other provision of this division, the Department of Corrections shall have medical control over treatment provided an injured inmate while incarcerated in a state prison, except, that in serious cases, the inmate is entitled, upon request, to the services of a consulting physician. (d) Paragraphs (2), (3), and (4) of subdivision (a) shall also be applicable to an inmate of a state penal or correctional institution who would otherwise be entitled to receive workers’ compensation benefits based on an injury sustained prior to his or her incarceration. However, temporary and permanent disability benefits which, except for this subdivision, would otherwise be payable to an inmate during incarceration based on an injury sustained prior to incarceration shall be paid to the dependents of the inmate. If the inmate has no dependents, the temporary disability benefits which, except for this subdivision, would otherwise be payable during the inmate’s incarceration shall be paid to the State Treasury to the credit of the Uninsured Employers Fund, and the permanent disability benefits which would otherwise be payable during the inmate’s incarceration shall be held in trust for the inmate by the Department of Corrections during the period of incarceration. For purposes of this subdivision, “dependents” means the inmate’s spouse or children, including an inmate’s former spouse due to divorce and the inmate’s children from that marriage. (e) Notwithstanding any other provision of this division, an employee who is an inmate, as defined in subdivision (e) of Section 3351 who is eligible for vocational rehabilitation services as defined in Section 4635 shall only be eligible for direct placement services. (Amended by Stats. 1994, Ch. 497, Sec. 3. Effective January 1, 1995.)
  27. 3370.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Patients in a State Department of State Hospital facility are entitled to workers’ compensation benefits for qualifying vocational rehabilitation injuries, but some benefits are paused or limited during commitment or reincarceration.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3370.1. (a) Each patient in a State Department of State Hospital facility shall be entitled to the workers’ compensation benefits provided by this division for injury arising out of and in the course of a vocational rehabilitation program work assignment, including a sheltered workshop work assignment, and for the death of the patient if the injury proximately causes death, subject to all of the following conditions: (1) The patient was not injured as the result of an assault in which the patient was the initial aggressor, or as the result of the intentional act of the patient injuring themselves. (2) The patient shall not be entitled to any temporary disability indemnity benefits while committed in a state hospital facility or reincarcerated in a city or county jail or state penal or correctional institution. (3) Benefits shall not be paid to a patient while the patient is committed in a state hospital facility. The period of benefit payment shall instead commence upon release from a state hospital. If a patient who has been released from a state hospital facility, and has been receiving benefits under this section, is recommitted to a state hospital facility, a jail-based competency treatment program, an Admission, Evaluation, and Stabilization (AES) Center, or any other program considered to be a facility of the State Department of State Hospitals under Section 4100 of the Welfare and Institutions Code, or if the patient is reincarcerated in a city or county jail or state penal or correctional institution, the benefits shall cease immediately upon the patient’s recommitment or reincarceration and shall not be paid for the duration of the recommitment or reincarceration. (4) This section shall not be construed to provide for the payment to a patient, upon release from a state hospital facility, a jail-based competency treatment program, an Admission, Evaluation, and Stabilization (AES) Center, or any other program considered to be a facility of the State Department of State Hospitals under Section 4100 of the Welfare and Institutions Code, or upon release from incarceration, of temporary disability benefits that were not paid due to the prohibition of paragraph (2). (5) In determining temporary and permanent disability indemnity benefits for the patient, the average weekly earnings shall be taken at not more than the minimum amount set forth in Section 4453. (6) If a dispute exists respecting a patient’s rights to the workers’ compensation benefits provided herein, the patient may file an application with the workers’ compensation appeals board to resolve the dispute. The application may be filed at any time during the patient’s commitment at a state hospital facility. (7) After release or discharge from a state hospital facility, the former patient shall have one year in which to file an original application with the workers’ compensation appeals board, unless the time of injury is such that it would allow more time under Section 5804. (8) The percentage of disability to total disability shall be determined as for the occupation of a laborer of like age by applying the schedule for the determination of the percentages of permanent disabilities prepared and adopted by the administrative director. (9) This division shall be the exclusive remedy against the state for injuries occurring while engaged in a vocational rehabilitation program. Nothing in this division shall affect any other right or remedy of an injured patient resulting from injuries not compensated by this division. (b) The State Department of State Hospitals shall present to each patient worker, prior to their first vocational rehabilitation assignment, a printed statement of their rights under this division, and a description of procedures to be followed in filing for benefits under this section. The statement shall be approved by the Director of State Hospitals or their designee and shall be posted in various conspicuous locations where patients work or reside. (c) Notwithstanding any other provision of this division, the State Department of State Hospitals shall provide medical care for its patients, which may include medical services at an outside facility. (d) (1) Paragraphs (2), (3), and (4) of subdivision (a) shall also be applicable to a patient who would otherwise be entitled to receive workers’ compensation benefits based on an injury sustained prior to their commitment to a state hospital facility. However, temporary and permanent disability benefits which, except for this subdivision, would otherwise be payable to a patient based on an injury sustained prior to commitment to a state hospital facility, a jail-based competency treatment program, an Admission, Evaluation, and Stabilization (AES) Center, or any other program considered to be a facility of the State Department of State Hospitals under Section 4100 of the Welfare and Institutions Code, shall be paid to the dependents of the patient. If the patient has no dependents, the temporary disability benefits which, except for this subdivision, would otherwise be payable during the patient’s commitment shall be paid to the State Treasury to the credit of the Uninsured Employers Benefits Trust Fund, and the permanent disability benefits that would otherwise be payable during the patient’s commitment shall be held in trust for the patient by the State Department of State Hospitals during the period of commitment. (2) For purposes of this subdivision, “dependents” means the patient’s spouse or children, including a patient’s former spouse due to divorce and the patient’s children from that marriage. (e) Notwithstanding any other provision of this division, a patient who is an employee, as defined in subdivision (h) of Section 3351, is eligible for supplemental job displacement benefits as defined in Section 4658.7. (Added by Stats. 2019, Ch. 38, Sec. 34. (SB 78) Effective June 27, 2019.)
  28. 3371.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If the issues are complex or the inmate applicant asks, the Department of Corrections must provide a list of qualified workers’ compensation attorneys.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3371. If the issues are complex or if the inmate applicant requests, the Department of Corrections shall furnish a list of qualified workers’ compensation attorneys to permit the inmate applicant to choose an attorney to represent him or her before the appeals board. (Repealed and added by Stats. 1994, Ch. 497, Sec. 5. Effective January 1, 1995.)
  29. 3371.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If the issues are complex or the patient applicant asks, the State Department of State Hospitals must provide a list of qualified workers’ compensation attorneys.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Employees [3350 - 3371.1] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 3371.1. If the issues are complex or if the patient applicant requests, the State Department of State Hospitals shall furnish a list of qualified workers’ compensation attorneys to permit the patient applicant to choose an attorney to represent them before the workers’ compensation appeals board. (Added by Stats. 2019, Ch. 38, Sec. 35. (SB 78) Effective June 27, 2019.)
  30. 350.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    This section defines key terms used in the gratuities article, including employer, employee, employing, agent, gratuity, and business.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 350. As used in this article, unless the context indicates otherwise: (a) “Employer” means every person engaged in any business or enterprise in this state that has one or more persons in service under any appointment, contract of hire, or apprenticeship, express or implied, oral or written, irrespective of whether the person is the owner of the business or is operating on a concessionaire or other basis. (b) “Employee” means every person, including minors and persons who are not citizens or nationals of the United States, rendering actual service in any business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis. (c) “Employing” includes hiring, or in any way contracting for, the services of an employee. (d) “Agent” means every person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees. (e) “Gratuity” includes any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for goods, food, drink, or articles sold or served to the patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity. (f) “Business” means any business establishment or enterprise, regardless of where conducted. (Amended by Stats. 2021, Ch. 296, Sec. 38. (AB 1096) Effective January 1, 2022.)
  31. 3501.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Dependents [3501 - 3503] ( Article 3 enacted by Stats. 1937, Ch. 90. )

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    This section creates conclusive presumptions that certain children and qualifying surviving spouses are wholly dependent for support on a deceased employee.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Dependents [3501 - 3503] ( Article 3 enacted by Stats. 1937, Ch. 90. ) ## 3501. (a) A child under the age of 18 years, or a child of any age found by any trier of fact, whether contractual, administrative, regulatory, or judicial, to be physically or mentally incapacitated from earning, shall be conclusively presumed to be wholly dependent for support upon a deceased employee-parent with whom that child is living at the time of injury resulting in death of the parent or for whose maintenance the parent was legally liable at the time of injury resulting in death of the parent. (b) A spouse to whom a deceased employee is married at the time of death shall be conclusively presumed to be wholly dependent for support upon the deceased employee if the surviving spouse earned thirty thousand dollars ($30,000) or less in the twelve months immediately preceding the death. (Amended by Stats. 2013, Ch. 786, Sec. 1. (AB 607) Effective January 1, 2014.)
  32. 3502.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Dependents [3501 - 3503] ( Article 3 enacted by Stats. 1937, Ch. 90. )

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    Questions about whether someone is wholly or partly dependent, and who qualifies as a dependent, must be decided based on the facts at the time the employee was injured.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Dependents [3501 - 3503] ( Article 3 enacted by Stats. 1937, Ch. 90. ) ## 3502. In all other cases, questions of entire or partial dependency and questions as to who are dependents and the extent of their dependency shall be determined in accordance with the facts as they exist at the time of the injury of the employee. (Enacted by Stats. 1937, Ch. 90.)
  33. 3503.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Dependents [3501 - 3503] ( Article 3 enacted by Stats. 1937, Ch. 90. )

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    A person counts as a dependent of a deceased employee only if they were a member of the employee’s family or household, or if they had one of the listed family relationships.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Dependents [3501 - 3503] ( Article 3 enacted by Stats. 1937, Ch. 90. ) ## 3503. No person is a dependent of any deceased employee unless in good faith a member of the family or household of the employee, or unless the person bears to the employee the relation of spouse, child, posthumous child, adopted child or stepchild, grandchild, father or mother, father-in-law or mother-in-law, grandfather or grandmother, brother or sister, uncle or aunt, brother-in-law or sister-in-law, or nephew or niece. (Amended by Stats. 2016, Ch. 50, Sec. 63. (SB 1005) Effective January 1, 2017.)
  34. 351.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    Employers and their agents generally may not take tips, deduct them from wages, or force employees to count tips toward wages. Credit-card tips must be paid in full to employees by the next regular payday, and no processing fees may be taken out.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 351. (a) No employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deduct any amount from wages due an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for. An employer that permits patrons to pay gratuities by credit card shall pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Payment of gratuities made by patrons using credit cards shall be made to the employees not later than the next regular payday following the date the patron authorized the credit card payment. (b) The Labor Commissioner may investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of this section. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the Labor Commissioner shall be the same as those set out in Section 1197.1, as appropriate. (Amended by Stats. 2025, Ch. 93, Sec. 1. (SB 648) Effective January 1, 2026.)
  35. 353.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    Every employer must keep accurate records of gratuities received, and those records must be open to inspection by the department at reasonable hours.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 353. Every employer shall keep accurate records of all gratuities received by him, whether received directly from the employee or indirectly by means of deductions from the wages of the employee or otherwise. Such records shall be open to inspection at all reasonable hours by the department. (Enacted by Stats. 1937, Ch. 90.)
  36. 354.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    An employer who violates this article commits a misdemeanor.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 354. Any employer who violates any provision of this article is guilty of a misdemeanor, punishable by a fine not exceeding one thousand dollars ($1,000) or by imprisonment for not exceeding 60 days, or both. (Amended by Stats. 1983, Ch. 1092, Sec. 190. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)
  37. 355.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    The Department of Industrial Relations must enforce this article, and any fines collected under it must go to the state treasury and be credited to the general fund.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 355. The Department of Industrial Relations shall enforce the provisions of this article. All fines collected under this article shall be paid into the State treasury and credited to the general fund. (Enacted by Stats. 1937, Ch. 90.)
  38. 3550.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Employee Notice [3550 - 3553] ( Article 4 added by Stats. 1984, Ch. 1141, Sec. 1. )

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    Employers covered by this division must post a workers’ compensation notice at the workplace, and insurers must give the notice to policyholders.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Employee Notice [3550 - 3553] ( Article 4 added by Stats. 1984, Ch. 1141, Sec. 1. ) ## 3550. (a) Every employer subject to the compensation provisions of this division shall post and keep posted in a conspicuous location frequented by employees, and where the notice may be easily read by employees during the hours of the workday, a notice that states the name of the current compensation insurance carrier of the employer, or when appropriate, that the employer is self-insured, and who is responsible for claims adjustment. (b) Failure to keep any notice required by this section conspicuously posted shall constitute a misdemeanor, and shall be prima facie evidence of noninsurance. (c) This section shall not apply with respect to the employment of employees as defined in subdivision (d) of Section 3351. (d) The form and content of the notice required by this section shall be prescribed by the administrative director, after consultation with the Commission on Health and Safety and Workers’ Compensation, and shall advise employees that all injuries should be reported to their employer. The notice shall be easily understandable. It shall be posted in both English and Spanish where there are Spanish-speaking employees. The notice shall include the following information: (1) How to get emergency medical treatment, if needed. (2) The kinds of events, injuries, and illnesses covered by workers’ compensation. (3) The injured employee’s right to receive medical care. (4) The injured employee may consult a licensed attorney to advise them of their rights under workers’ compensations laws. In most instances, attorney’s fees will be paid from an injured employee’s recovery. (5) The rights of the employee to select and change the treating physician pursuant to the provisions of Section 4600. (6) The rights of the employee to receive temporary disability indemnity, permanent disability indemnity, supplemental job displacement, and death benefits, as appropriate. (7) To whom injuries should be reported. (8) The existence of time limits for the employer to be notified of an occupational injury. (9) The protections against discrimination provided pursuant to Section 132a. (10) The internet website address and contact information that employees may use to obtain further information about the workers’ compensation claims process and an injured employee’s rights and obligations, including the location and telephone number of the nearest information and assistance officer. (e) Failure of an employer to provide the notice required by this section shall automatically permit the employee to be treated by their personal physician with respect to an injury occurring during that failure. (f) The form and content of the notice required to be posted by this section shall be made available to self-insured employers and insurers by the administrative director. Insurers shall provide this notice to each of their policyholders, with advice concerning the requirements of this section and the penalties for a failure to post this notice. (Amended by Stats. 2024, Ch. 87, Sec. 1. (AB 1870) Effective January 1, 2025.)
  39. 3551.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Employee Notice [3550 - 3553] ( Article 4 added by Stats. 1984, Ch. 1141, Sec. 1. )

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    Most employers covered by the workers’ compensation provisions must give each new employee a written notice about Section 3550 by hire time or the end of the first pay period, unless the employee falls within the stated exception.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Employee Notice [3550 - 3553] ( Article 4 added by Stats. 1984, Ch. 1141, Sec. 1. ) ## 3551. (a) Every employer subject to the compensation provisions of this code, except employers of employees defined in subdivision (d) of Section 3351, shall give every new employee, either at the time the employee is hired or by the end of the first pay period, written notice of the information contained in Section 3550. The content of the notice required by this section shall be prescribed by the administrative director after consultation with the Commission on Health and Safety and Workers’ Compensation. (b) The notice required by this section shall be easily understandable and available in both English and Spanish. In addition to the information contained in Section 3550, the content of the notice required by this section shall include: (1) Generally, how to obtain appropriate medical care for a job injury. (2) The role and function of the primary treating physician. (3) A form that the employee may use as an optional method for notifying the employer of the name of the employee’s “personal physician,” as defined by Section 4600, or “personal chiropractor,” as defined by Section 4601. (c) The content of the notice required by this section shall be made available to employers and insurers by the administrative director. Insurers shall provide this notice to each of their policyholders, with advice concerning the requirements of this section and the penalties for a failure to provide this notice to all employees. (Amended by Stats. 2002, Ch. 6, Sec. 45. Effective January 1, 2003.)
  40. 3553.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Employee Notice [3550 - 3553] ( Article 4 added by Stats. 1984, Ch. 1141, Sec. 1. )

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    Covered employers must give crime-victim employees written notice about possible workers’ compensation coverage for resulting injuries, including psychiatric injuries.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 2. Employers, Employees, and Dependents [3300 - 3553] ( Chapter 2 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Employee Notice [3550 - 3553] ( Article 4 added by Stats. 1984, Ch. 1141, Sec. 1. ) ## 3553. Every employer subject to the compensation provisions of this code shall give any employee who is a victim of a crime that occurred at the employee’s place of employment written notice that the employee is eligible for workers’ compensation for injuries, including psychiatric injuries, that may have resulted from the place of employment crime. The employer shall provide this notice, either personally or by first-class mail, within one working day of the place of employment crime, or within one working day of the date the employer reasonably should have known of the crime. (Added by Stats. 1997, Ch. 527, Sec. 3. Effective January 1, 1998.)
  41. 356.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    This article says tipping rules are meant to prevent fraud on the public and bind all State departments.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Gratuities [350 - 356] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 356. The Legislature expressly declares that the purpose of this article is to prevent fraud upon the public in connection with the practice of tipping and declares that this article is passed for a public reason and can not be contravened by a private agreement. As a part of the social public policy of this State, this article is binding upon all departments of the State. (Enacted by Stats. 1937, Ch. 90.)
  42. 3600.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    This section makes an employer liable for workers’ compensation for qualifying employee injuries or death, subject to listed conditions and exceptions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600. (a) Liability for the compensation provided by this division, in lieu of any other liability whatsoever to any person except as otherwise specifically provided in Sections 3602, 3706, and 4558, shall, without regard to negligence, exist against an employer for any injury sustained by his or her employees arising out of and in the course of the employment and for the death of any employee if the injury proximately causes death, in those cases where the following conditions of compensation concur: (1) Where, at the time of the injury, both the employer and the employee are subject to the compensation provisions of this division. (2) Where, at the time of the injury, the employee is performing service growing out of and incidental to his or her employment and is acting within the course of his or her employment. (3) Where the injury is proximately caused by the employment, either with or without negligence. (4) Where the injury is not caused by the intoxication, by alcohol or the unlawful use of a controlled substance, of the injured employee. As used in this paragraph, “controlled substance” shall have the same meaning as prescribed in Section 11007 of the Health and Safety Code. (5) Where the injury is not intentionally self-inflicted. (6) Where the employee has not willfully and deliberately caused his or her own death. (7) Where the injury does not arise out of an altercation in which the injured employee is the initial physical aggressor. (8) Where the injury is not caused by the commission of a felony, or a crime which is punishable as specified in subdivision (b) of Section 17 of the Penal Code, by the injured employee, for which he or she has been convicted. (9) Where the injury does not arise out of voluntary participation in any off-duty recreational, social, or athletic activity not constituting part of the employee’s work-related duties, except where these activities are a reasonable expectancy of, or are expressly or impliedly required by, the employment. The administrative director shall promulgate reasonable rules and regulations requiring employers to post and keep posted in a conspicuous place or places a notice advising employees of the provisions of this subdivision. Failure of the employer to post the notice shall not constitute an expression of intent to waive the provisions of this subdivision. (10) Except for psychiatric injuries governed by subdivision (e) of Section 3208.3, where the claim for compensation is filed after notice of termination or layoff, including voluntary layoff, and the claim is for an injury occurring prior to the time of notice of termination or layoff, no compensation shall be paid unless the employee demonstrates by a preponderance of the evidence that one or more of the following conditions apply: (A) The employer has notice of the injury, as provided under Chapter 2 (commencing with Section 5400), prior to the notice of termination or layoff. (B) The employee’s medical records, existing prior to the notice of termination or layoff, contain evidence of the injury. (C) The date of injury, as specified in Section 5411, is subsequent to the date of the notice of termination or layoff, but prior to the effective date of the termination or layoff. (D) The date of injury, as specified in Section 5412, is subsequent to the date of the notice of termination or layoff. For purposes of this paragraph, an employee provided notice pursuant to Sections 44948.5, 44949, 44951, 44955, 72411, 87740, and 87743 of the Education Code shall be considered to have been provided a notice of termination or layoff only upon a district’s final decision not to reemploy that person. A notice of termination or layoff that is not followed within 60 days by that termination or layoff shall not be subject to the provisions of this paragraph, and this paragraph shall not apply until receipt of a later notice of termination or layoff. The issuance of frequent notices of termination or layoff to an employee shall be considered a bad faith personnel action and shall make this paragraph inapplicable to the employee. (b) Where an employee, or his or her dependents, receives the compensation provided by this division and secures a judgment for, or settlement of, civil damages pursuant to those specific exemptions to the employee’s exclusive remedy set forth in subdivision (b) of Section 3602 and Section 4558, the compensation paid under this division shall be credited against the judgment or settlement, and the employer shall be relieved from the obligation to pay further compensation to, or on behalf of, the employee or his or her dependents up to the net amount of the judgment or settlement received by the employee or his or her heirs, or that portion of the judgment as has been satisfied. (c) For purposes of determining whether to grant or deny a workers’ compensation claim, if an employee is injured or killed by a third party in the course of the employee’s employment, no personal relationship or personal connection shall be deemed to exist between the employee and the third party based only on a determination that the third party injured or killed the employee solely because of the third party’s personal beliefs relating to his or her perception of the employee’s race, religious creed, color, national origin, age, disability, sex, gender, gender identity, gender expression, or sexual orientation. (Amended by Stats. 2011, Ch. 719, Sec. 29. (AB 887) Effective January 1, 2012.)
  43. 3600.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    State firefighters injured, killed, or disabled during qualifying fire-suppression, rescue, or life/property protection activities are to receive the same benefits from their employer as if they were acting under the employer’s immediate direction, subject to stated exceptions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600.1. (a) Whenever any firefighter of the state, as defined in Section 19886 of the Government Code, is injured, dies, or is disabled from performing his or her duties as a firefighter by reason of his or her proceeding to or engaging in a fire-suppression or rescue operation, or the protection or preservation of life or property, anywhere in this state, including the jurisdiction in which he or she is employed, but is not at the time acting under the immediate direction of his or her employer, he or she or his or her dependents, as the case may be, shall be accorded by his or her employer all of the same benefits of this division that he, she, or they would have received had that firefighter been acting under the immediate direction of his or her employer. Any injury, disability, or death incurred under the circumstances described in this section shall be deemed to have arisen out of, and been sustained in, the course of employment for purposes of workers’ compensation and all other benefits. (b) Nothing in this section shall be deemed to do either of the following: (1) Require the extension of any benefits to a firefighter who, at the time of his or her injury, death, or disability, is acting for compensation from one other than the state. (2) Require the extension of any benefits to a firefighter employed by the state where by departmental regulation, whether now in force or hereafter enacted or promulgated, the activity giving rise to the injury, disability, or death is expressly prohibited. (c) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 of the Government Code, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act. (Amended by Stats. 2005, Ch. 22, Sec. 143. Effective January 1, 2006.)
  44. 3600.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Peace officers injured, killed, or disabled while pursuing or protecting life or property may be entitled to the same benefits as if they were acting under the employer’s immediate direction, subject to stated exceptions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600.2. (a) Whenever any peace officer, as defined in Section 50920 of the Government Code, is injured, dies, or is disabled from performing his or her duties as a peace officer by reason of engaging in the apprehension or attempted apprehension of law violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace, anywhere in this state, including the local jurisdiction in which he or she is employed, but is not at the time acting under the immediate direction of his or her employer, the peace officer or his or her dependents, as the case may be, shall be accorded by the peace officer’s employer all of the same benefits, including the benefits of this division, that the peace officer or his or her dependents would have received had that peace officer been acting under the immediate direction of his or her employer. Any injury, disability, or death incurred under the circumstances described in this section shall be deemed to have arisen out of and been sustained in the course of employment for purposes of workers’ compensation and all other benefits. (b) Nothing in this section shall be deemed to: (1) Require the extension of any benefits to a peace officer who at the time of his or her injury, death, or disability is acting for compensation from one other than the city, county, city and county, judicial district, or town of his or her primary employment. (2) Require the extension of any benefits to a peace officer employed by a city, county, city and county, judicial district, or town which by charter, ordinance, or departmental regulation, whether now in force or hereafter enacted or promulgated, expressly prohibits the activity giving rise to the injury, disability, or death. (3) Enlarge or extend the authority of any peace officer to make an arrest; provided, however, that illegality of the arrest shall not affect the extension of benefits by reason of this act if the peace officer reasonably believed that the arrest was not illegal. (4) Preclude an employer, at its discretion or in accordance with written policies adopted by resolution of the employer’s governing body, from accepting liability for compensation under this division for an injury sustained by a peace officer, as defined in Section 50920 of the Government Code, by reason of engaging in the apprehension or attempted apprehension of law violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace, outside the state of California, but who was not at the time acting under the immediate direction of his or her employer, including any claims for injuries sustained by peace officers during the October 1, 2017, mass shooting in Las Vegas, Nevada, if the employer determines that providing compensation serves the public purposes of the employer. For claims filed pursuant to this paragraph by peace officers for injuries sustained during the October 1, 2017, mass shooting in Las Vegas, Nevada, the date of injury for purposes of subdivision (a) of Section 5405 shall be deemed the operative date of the act adding this paragraph. Acceptance of liability under this subdivision shall not affect the determination of whether or not the peace officer acted within the scope of his or her employment for any other purpose. (Amended by Stats. 2018, Ch. 707, Sec. 1. (AB 1749) Effective January 1, 2019.)
  45. 3600.3.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    An off-duty peace officer may be treated as acting within the course of employment for certain required on-call services performed in the employing agency’s jurisdiction.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600.3. (a) For the purposes of Section 3600, an off-duty peace officer, as defined in subdivision (b), who is performing, within the jurisdiction of his or her employing agency, a service he or she would, in the course of his or her employment, have been required to perform if he or she were on duty, is performing a service growing out of and incidental to his or her employment and is acting within the course of his or her employment if, as a condition of his or her employment, he or she is required to be on call within the jurisdiction during off-duty hours. (b) As used in subdivision (a), “peace officer” means those employees of the Department of Forestry and Fire Protection named as peace officers for purposes of subdivision (b) of Section 830.37 of the Penal Code. (c) This section does not apply to any off-duty peace officer while he or she is engaged, either as an employee or as an independent contractor, in any capacity other than as a peace officer. (Amended by Stats. 1992, Ch. 427, Sec. 122. Effective January 1, 1993.)
  46. 3600.4.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    An employer must give covered firefighters the same benefits under this division when they are injured, die, or become disabled during certain fire suppression, rescue, or life/property protection activities outside immediate employer direction.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600.4. (a) Whenever any firefighter of a city, county, city and county, district, or other public or municipal corporation or political subdivision, or any firefighter employed by a private entity, is injured, dies, or is disabled from performing his or her duties as a firefighter by reason of his or her proceeding to or engaging in a fire suppression or rescue operation, or the protection or preservation of life or property, anywhere in this state, including the local jurisdiction in which he or she is employed, but is not at the time acting under the immediate direction of his or her employer, he or she or his or her dependents, as the case may be, shall be accorded by his or her employer all of the same benefits of this division which he or she or they would have received had that firefighter been acting under the immediate direction of his or her employer. Any injury, disability, or death incurred under the circumstances described in this section shall be deemed to have arisen out of and been sustained in the course of employment for purposes of workers’ compensation and all other benefits. (b) Nothing in this section shall be deemed to: (1) Require the extension of any benefits to a firefighter who at the time of his or her injury, death, or disability is acting for compensation from one other than the city, county, city and county, district, or other public or municipal corporation or political subdivision, or private entity, of his or her primary employment or enrollment. (2) Require the extension of any benefits to a firefighter employed by a city, county, city and county, district, or other public or municipal corporation or political subdivision, or private entity, which by charter, ordinance, departmental regulation, or private employer policy, whether now in force or hereafter enacted or promulgated, expressly prohibits the activity giving rise to the injury, disability, or death. However, this paragraph shall not apply to relieve the employer from liability for benefits for any injury, disability, or death of a firefighter when the firefighter is acting pursuant to Section 1799.107 of the Health and Safety Code. (Amended by Stats. 1998, Ch. 617, Sec. 2. Effective January 1, 1999.)
  47. 3600.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    This section sets when workers’ compensation applies to out-of-state injuries and when certain employees or professional athletes are exempt.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600.5. (a) If an employee who has been hired or is regularly working in the state receives personal injury by accident arising out of and in the course of employment outside of this state, he or she, or his or her dependents, in the case of his or her death, shall be entitled to compensation according to the law of this state. (b) (1) An employee who has been hired outside of this state and his or her employer shall be exempted from the provisions of this division while the employee is temporarily within this state doing work for his or her employer if the employer has furnished workers’ compensation insurance coverage under the workers’ compensation insurance or similar laws of a state other than California, so as to cover the employee’s work while in this state if both of the following apply: (A) The extraterritorial provisions of this division are recognized in the other state. (B) The employers and employees who are covered in this state are likewise exempted from the application of the workers’ compensation insurance or similar laws of the other state. (2) In any case in which paragraph (1) is satisfied, the benefits under the workers’ compensation insurance or similar laws of the other state, and other remedies under those laws, shall be the exclusive remedy against the employer for any injury, whether resulting in death or not, received by the employee while working for the employer in this state. (c) (1) With respect to an occupational disease or cumulative injury, a professional athlete who has been hired outside of this state and his or her employer shall be exempted from the provisions of this division while the professional athlete is temporarily within this state doing work for his or her employer if both of the following are satisfied: (A) The employer has furnished workers’ compensation insurance coverage or its equivalent under the laws of a state other than California. (B) The employer’s workers’ compensation insurance or its equivalent covers the professional athlete’s work while in this state. (2) In any case in which paragraph (1) is satisfied, the benefits under the workers’ compensation insurance or similar laws of the other state, and other remedies under those laws, shall be the exclusive remedy against the employer for any occupational disease or cumulative injury, whether resulting in death or not, received by the employee while working for the employer in this state. (3) A professional athlete shall be deemed, for purposes of this subdivision, to be temporarily within this state doing work for his or her employer if, during the 365 consecutive days immediately preceding the professional athlete’s last day of work for the employer within the state, the professional athlete performs less than 20 percent of his or her duty days in California during that 365-day period in California. (d) (1) With respect to an occupational disease or cumulative injury, a professional athlete and his or her employer shall be exempt from this division when all of the professional athlete’s employers in his or her last year of work as a professional athlete are exempt from this division pursuant to subdivision (c) or any other law, unless both of the following conditions are satisfied: (A) The professional athlete has, over the course of his or her professional athletic career, worked for two or more seasons for a California-based team or teams, or the professional athlete has, over the course of his or her professional athletic career, worked 20 percent or more of his or her duty days either in California or for a California-based team. The percentage of a professional athletic career worked either within California or for a California-based team shall be determined solely by taking the number of duty days the professional athlete worked for a California-based team or teams, plus the number of duty days the professional athlete worked as a professional athlete in California for any team other than a California-based team, and dividing that number by the total number of duty days the professional athlete was employed anywhere as a professional athlete. (B) The professional athlete has, over the course of his or her professional athletic career, worked for fewer than seven seasons for any team or teams other than a California-based team or teams as defined in this section. (2) When subparagraphs (A) and (B) of paragraph (1) are both satisfied, liability for the professional athlete’s occupational disease or cumulative injury shall be determined in accordance with Section 5500.5. (e) An employer of professional athletes, other than a California-based team, shall be exempt from Article 4 (commencing with Section 3550) of Chapter 2, and subdivisions (a) to (c), inclusive, of Section 5401. (f) For purposes of this section, a certificate from the duly authorized officer of the appeals board or similar department of another state certifying that the employer of the other state is insured in that state and has provided extraterritorial coverage insuring his or her employees while working within this state shall be prima facie evidence that the employer carries workers’ compensation insurance. (g) For purposes of this section, the following definitions apply: (1) The term “professional athlete” means an athlete who is employed at either a minor or major league level in the sport of baseball, basketball, football, ice hockey, or soccer. (2) The term “California-based team” means a team that plays a majority of its home games in California. (3) The term “duty day” means a day in which any services are performed by a professional athlete under the direction and control of his or her employer pursuant to a player contract. (4) The term “season” means the period from the date of the first preseason team activity for that contract year, through the date of the last game the professional athlete’s team played during the same contract year. (h) The amendments made to this section by the act adding this subdivision apply to all claims for benefits pursuant to this division filed on or after September 15, 2013. The amendments made to this section by the act adding this subdivision shall not constitute good cause to reopen any final decision, order, or award. (i) If any provision of this section or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable. (Amended by Stats. 2013, Ch. 653, Sec. 1. (AB 1309) Effective January 1, 2014.)
  48. 3600.6.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    Registered disaster service workers, and certain unregistered persons pressed into service during emergencies, are entitled to the same workers’ compensation benefits as other injured employees or disaster service workers, with an exception for Chapter 10.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600.6. Disaster service workers registered by a disaster council while performing services under the general direction of the disaster council shall be entitled to all of the same benefits of this division as any other injured employee, except as provided by Chapter 10 (commencing with Section 4351) of Part 1. For purposes of this section, an unregistered person impressed into performing service as a disaster service worker during a state of war emergency, a state of emergency, or a local emergency by a person having authority to command the aid of citizens in the execution of his or her duties shall also be deemed a disaster service worker and shall be entitled to the same benefits of this division as any other disaster service worker. (Added by Stats. 1986, Ch. 554, Sec. 1.)
  49. 3600.8.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    This section limits when certain commute-program travel counts as work for workers’ compensation and sets related rules for employer coverage, reimbursement, and state employees in vanpools.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3600.8. (a) No employee who voluntarily participates in an alternative commute program that is sponsored or mandated by a governmental entity shall be considered to be acting within the course of his or her employment while utilizing that program to travel to or from his or her place of employment, unless he or she is paid a regular wage or salary in compensation for those periods of travel. An employee who is injured while acting outside the course of his or her employment, or his or her dependents in the event of the employee’s death, shall not be barred from bringing an action at law for damages against his or her employer as a result of this section. (b) Any alternative commute program provided, sponsored, or subsidized by an employee’s employer in order to comply with any trip reduction mandates of an air quality management district or local government shall be considered a program mandated by a governmental entity. An employer’s reimbursement of employee expenses or subsidization of costs related to an alternative commute program shall not be considered payment of a wage or salary in compensation for the period of travel. If an employer’s salary is not based on the hours the employee works, payment of his or her salary shall not be considered to be in compensation for the period of travel unless there is a specific written agreement between the employer and the employee to that effect. If an employer elects to provide workers’ compensation coverage for those employees who are passengers in a vehicle owned and operated by the employer or an agent thereof, those employees shall be considered to be within the course of their employment, provided the employer notifies employees in writing prior to participation of the employee or coverage becoming effective. (c) As used in this section, “governmental entity” means a regional air district, air quality management district, congestion management agency, or other local jurisdiction having authority to enact air pollution or congestion management controls or impose them upon entities within its jurisdiction. (d) Notwithstanding any other provision of law, vanpool programs may continue to provide workers’ compensation benefits to employees who participate in an alternative commute program by riding in a vanpool, in the case in which the vanpool vehicle is owned or registered to the employer. (e) Employees of the state who participate in an alternative commute program, while riding in a vanpool vehicle that is registered to or owned by the state, shall be deemed to be within the course and scope of employment for workers’ compensation purposes only. (Added by Stats. 1994, Ch. 622, Sec. 1. Effective January 1, 1995.)
  50. 3601.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    The section makes workers’ compensation the exclusive remedy against a coemployee, except in two specified cases.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3601. (a) Where the conditions of compensation set forth in Section 3600 concur, the right to recover such compensation, pursuant to the provisions of this division is, except as specifically provided in this section, the exclusive remedy for injury or death of an employee against any other employee of the employer acting within the scope of his or her employment, except that an employee, or his or her dependents in the event of his or her death, shall, in addition to the right to compensation against the employer, have a right to bring an action at law for damages against the other employee, as if this division did not apply, in either of the following cases: (1) When the injury or death is proximately caused by the willful and unprovoked physical act of aggression of the other employee. (2) When the injury or death is proximately caused by the intoxication of the other employee. (b) In no event, either by legal action or by agreement whether entered into by the other employee or on his or her behalf, shall the employer be held liable, directly or indirectly, for damages awarded against, or for a liability incurred by the other employee under paragraph (1) or (2) of subdivision (a). (c) No employee shall be held liable, directly or indirectly, to his or her employer, for injury or death of a coemployee except where the injured employee or his or her dependents obtain a recovery under subdivision (a). (Amended by Stats. 1982, Ch. 922, Sec. 5.)
  51. 3602.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    This section makes workers’ compensation the employee’s exclusive remedy against the employer when Section 3600’s conditions are met, but it allows a lawsuit in specific listed exceptions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3602. (a) Where the conditions of compensation set forth in Section 3600 concur, the right to recover compensation is, except as specifically provided in this section and Sections 3706 and 4558, the sole and exclusive remedy of the employee or his or her dependents against the employer. The fact that either the employee or the employer also occupied another or dual capacity prior to, or at the time of, the employee’s industrial injury shall not permit the employee or his or her dependents to bring an action at law for damages against the employer. (b) An employee, or his or her dependents in the event of his or her death, may bring an action at law for damages against the employer, as if this division did not apply, in the following instances: (1) Where the employee’s injury or death is proximately caused by a willful physical assault by the employer. (2) Where the employee’s injury is aggravated by the employer’s fraudulent concealment of the existence of the injury and its connection with the employment, in which case the employer’s liability shall be limited to those damages proximately caused by the aggravation. The burden of proof respecting apportionment of damages between the injury and any subsequent aggravation thereof is upon the employer. (3) Where the employee’s injury or death is proximately caused by a defective product manufactured by the employer and sold, leased, or otherwise transferred for valuable consideration to an independent third person, and that product is thereafter provided for the employee’s use by a third person. (c) In all cases where the conditions of compensation set forth in Section 3600 do not concur, the liability of the employer shall be the same as if this division had not been enacted. (d) (1) For the purposes of this division, including Sections 3700 and 3706, an employer may secure the payment of compensation on employees provided to it by agreement by another employer by entering into a valid and enforceable agreement with that other employer under which the other employer agrees to obtain, and has, in fact, obtained workers’ compensation coverage for those employees. In those cases, both employers shall be considered to have secured the payment of compensation within the meaning of this section and Sections 3700 and 3706 if there is a valid and enforceable agreement between the employers to obtain that coverage, and that coverage, as specified in subdivision (a) or (b) of Section 3700, has been in fact obtained, and the coverage remains in effect for the duration of the employment providing legally sufficient coverage to the employee or employees who form the subject matter of the coverage. That agreement shall not be made for the purpose of avoiding an employer’s appropriate experience rating as defined in subdivision (c) of Section 11730 of the Insurance Code. (2) Employers who have complied with this subdivision shall not be subject to civil, criminal, or other penalties for failure to provide workers’ compensation coverage or tort liability in the event of employee injury, but may, in the absence of compliance, be subject to all three. (e) As provided in paragraph (12) of subdivision (f) of Section 1202.4 of the Penal Code, in cases where an employer is convicted of a crime against an employee, a payment to the employee or the employee’s dependent that is paid by the employer’s workers’ compensation insurance carrier shall not be used to offset the amount of the restitution order unless the court finds that the defendant substantially met the obligation to pay premiums for that insurance coverage. (Amended by Stats. 2012, Ch. 868, Sec. 1. (SB 1177) Effective January 1, 2013.)
  52. 3603.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    If compensation is paid according to the appeals board’s order, the employer is discharged from the related claims.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3603. Payment of compensation in accordance with the order and direction of the appeals board shall discharge the employer from all claims therefor. (Amended by Stats. 1971, Ch. 438.)
  53. 3604.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    A public employer cannot use illegal hiring as a defense against a compensation claim when someone is injured while doing work for it.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3604. It is not a defense to the State, any county, city, district or institution thereof, or any public or quasi-public corporation, that a person injured while rendering service for it was not lawfully employed by reason of the violation of any civil service or other law or regulation respecting the hiring of employees. (Enacted by Stats. 1937, Ch. 90.)
  54. 3605.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. )

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    An injured minor’s compensation may be paid directly to the minor until a parent or guardian gives written notice claiming it; payments made before that notice cannot later be disaffirmed by the minor.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Conditions of Compensation Liability [3600 - 3605] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## 3605. The compensation due an injured minor may be paid to him until his parent or guardian gives the employer or the latter’s compensation insurance carrier written notice that he claims such compensation. Compensation paid to such injured minor prior to receipt of such written notice is in full release of the employer and insurance carrier for the amount so paid. The minor can not disaffirm such payment upon appointment of a guardian or coming of age. (Added by Stats. 1939, Ch. 648.)
  55. 3700.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    Most employers, except the state, must secure payment of compensation using an approved insurance or self-insurance method.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3700. Every employer except the state shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this state. (b) By securing from the Director of Industrial Relations a certificate of consent to self-insure either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his or her employees. (c) For any county, city, city and county, municipal corporation, public district, public agency, or any political subdivision of the state, including each member of a pooling arrangement under a joint exercise of powers agreement (but not the state itself), by securing from the Director of Industrial Relations a certificate of consent to self-insure against workers’ compensation claims, which certificate may be given upon furnishing proof satisfactory to the director of ability to administer workers’ compensation claims properly, and to pay workers’ compensation claims that may become due to its employees. On or before March 31, 1979, a political subdivision of the state which, on December 31, 1978, was uninsured for its liability to pay compensation, shall file a properly completed and executed application for a certificate of consent to self-insure against workers’ compensation claims. The certificate shall be issued and be subject to the provisions of Section 3702. For purposes of this section, “state” shall include the superior courts of California. (Amended by Stats. 2002, Ch. 905, Sec. 10. Effective January 1, 2003.)
  56. 3700.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    This section defines several terms used in the article, including “Director,” “Private self-insurer,” “Trustees,” “Member,” and “Incurred liabilities for the payment of compensation.”

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3700.1. As used in this article: (a) “Director” means the Director of Industrial Relations. (b) “Private self-insurer” means a private employer which has secured the payment of compensation pursuant to Section 3701. (c) “Trustees” means the Board of Trustees of the Self-Insurers’ Security Fund. (d) “Member” means a private self-insurer which participates in the Self-Insurers’ Security Fund. (e) “Incurred liabilities for the payment of compensation” means the sum of an estimate of future compensation, as compensation is defined by Section 3207, plus an estimate of the amount necessary to provide for the administration of claims, including legal costs. (Amended by Stats. 2012, Ch. 363, Sec. 10. (SB 863) Effective January 1, 2013.)
  57. 3700.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    A person who knew, or should have known, of the duty to secure compensation payments commits a misdemeanor if they fail to do so.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3700.5. (a) The failure to secure the payment of compensation as required by this article by one who knew, or because of his or her knowledge or experience should be reasonably expected to have known, of the obligation to secure the payment of compensation, is a misdemeanor punishable by imprisonment in the county jail for up to one year, or by a fine of up to double the amount of premium, as determined by the court, that would otherwise have been due to secure the payment of compensation during the time compensation was not secured, but not less than ten thousand dollars ($10,000), or by both that imprisonment and fine. (b) A second or subsequent conviction shall be punished by imprisonment in the county jail for a period not to exceed one year, by a fine of triple the amount of premium, or by both that imprisonment and fine, as determined by the court, that would otherwise have been due to secure the payment of compensation during the time payment was not secured, but not less than fifty thousand dollars ($50,000). (c) Upon a first conviction of a person under this section, the person may be charged the costs of investigation at the discretion of the court. Upon a subsequent conviction, the person shall be charged the costs of investigation in addition to any other penalties pursuant to subdivision (b). The costs of investigation shall be paid only after the payment of any benefits that may be owed to injured workers, any reimbursement that may be owed to the director for benefits provided to the injured worker pursuant to Section 3717, and any other penalty assessments that may be owed. (Amended by Stats. 2004, 4th Ex. Sess., Ch. 2, Sec. 3. Effective March 6, 2005.)
  58. 3701.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Private self-insuring employers must keep security deposits or equivalent security for workers’ compensation liabilities, and the director controls acceptable forms and related deposit handling.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3701. (a) Each year every private self-insuring employer shall secure incurred liabilities for the payment of compensation and the performance of the obligations of employers imposed under this chapter by renewing the prior year’s security deposit or by making a new deposit of security. If a new deposit is made, it shall be posted within 60 days of the filing of the self-insured employer’s annual report with the director, but in no event later than May 1. (b) The solvency risk and security deposit amount for each private and group self-insurer shall be acceptable to the Self-Insurers’ Security Fund. (c) Unless otherwise permitted by regulation, the deposit shall be an amount equal to the self-insurer’s projected losses, net of specific excess insurance coverage, if any, and inclusive of incurred but not reported (IBNR) liabilities, allocated loss adjustment expense, and unallocated loss adjustment expense, calculated as of December 31 of each year. The calculation of projected losses and expenses shall be reflected in a written actuarial report that projects ultimate liabilities of the private self-insured employer at the expected actuarial confidence level, to ensure that all claims and associated costs are recognized. The written actuarial report shall be prepared by an actuary meeting the qualifications prescribed by the director in regulation. (d) In determining the amount of the deposit required to secure incurred liabilities for the payment of compensation and the performance of obligations of a self-insured employer imposed under this chapter, the director shall offset estimated future liabilities for the same claims covered by a self-insured plan under the federal Longshore and Harbor Workers’ Compensation Act (33 U.S.C. Sec. 901 et seq.), but in no event shall the offset exceed the estimated future liabilities for the claims under this chapter. (e) The director may only accept as security, and the employer shall deposit as security, cash, securities, surety bonds, or irrevocable letters of credit in any combination the director, in his or her discretion, deems adequate security. The current deposit shall include any amounts covered by terminated surety bonds or excess insurance policies, as shall be set forth in regulations adopted by the director pursuant to Section 3702.10. (f) Surety bonds, irrevocable letters of credit, and documents showing issuance of any irrevocable letter of credit shall be deposited with, and be in a form approved by, the director, shall be exonerated only according to its terms and, in no event, by the posting of additional security. (g) The director may accept as security a joint security deposit that secures an employer’s obligation under this chapter and that also secures that employer’s obligations under the federal Longshore and Harbor Workers’ Compensation Act. (h) The liability of the Self-Insurers’ Security Fund, with respect to any claims brought under both this chapter and under the federal Longshore and Harbor Workers’ Compensation Act, to pay for shortfalls in a security deposit shall be limited to the amount of claim liability owing the employee under this chapter offset by the amount of any claim liability owing under the federal Longshore and Harbor Workers’ Compensation Act, but in no event shall the liability of the fund exceed the claim liability under this chapter. The employee shall be entitled to pursue recovery under either or both the state and federal programs. (i) Securities shall be deposited on behalf of the director by the self-insured employer with the Treasurer. Securities shall be accepted by the Treasurer for deposit and shall be withdrawn only upon written order of the director. (j) Cash shall be deposited in a financial institution approved by the director, and in the account assigned to the director. Cash shall be withdrawn only upon written order of the director. (k) Upon the sending by the director of a request to renew, request to post, or request to increase or decrease a security deposit, a perfected security interest is created in the private self-insured’s assets in favor of the director and the Self-Insurers’ Security Fund to the extent of any then unsecured portion of the self-insured’s incurred liabilities. That perfected security interest is transferred to any cash or securities thereafter posted by the private self-insured with the director and is released only upon either of the following: (1) The acceptance by the director of a surety bond or irrevocable letter of credit for the full amount of the incurred liabilities for the payment of compensation. (2) The return of cash or securities by the director. The private self-insured employer loses all right, title, and interest in, and any right to control, all assets or obligations posted or left on deposit as security. The director may liquidate the deposit as provided in Section 3701.5 and apply it to the self-insured employer’s incurred liabilities either directly or through the Self-Insurers’ Security Fund. (Amended by Stats. 2012, Ch. 363, Sec. 11. (SB 863) Effective January 1, 2013.)
  59. 3701.3.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    The director must return excess individual security to a private self-insured employer, with the Self-Insurers’ Security Fund’s consent, unless the security is part of a composite deposit or was turned over after a default order under Section 3701.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3701.3. The director shall return to a private self-insured employer all individual security determined, with the consent of the Self-Insurers’ Security Fund, to be in excess of that needed to ensure the administration of the employer’s self insuring, including legal fees, and the payment of any future claims. This section shall not apply to any security posted as part of the composite deposit, or to any security turned over to the Self-Insurers’ Security Fund following an order of default under Section 3701.5. (Amended by Stats. 2012, Ch. 363, Sec. 12. (SB 863) Effective January 1, 2013.)
  60. 3701.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    This section lets the director control how compensation claims and payments are handled when a private self-insured employer fails to pay or a security deposit is not available, and it requires the fund or other responsible parties to act in specified ways.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3701.5. (a) If the director determines that a private self-insured employer has failed to pay workers’ compensation as required by this division, the security deposit shall be utilized to administer and pay the employer’s compensation obligations. (b) If the director determines the security deposit has not been immediately made available for the payment of compensation, the director shall determine the method of payment and claims administration as appropriate, which may include, but is not limited to, payment by a surety that issued the bond, or payment by an issuer of an irrevocable letter of credit, and administration by a surety or by an adjusting agency, or through the Self-Insurers’ Security Fund, or any combination thereof. If the director arranges for administration and payment by any person other than the Self-Insurers’ Security Fund after a default is declared, the fund shall have no responsibility for claims administration or payment of the claims. (c) If the director determines the payment of benefits and claims administration shall be made through the Self-Insurers’ Security Fund, the fund shall commence payment of the private self-insured employer’s obligations for which it is liable under Section 3743 within 30 days of notification. Payments shall be made to claimants whose entitlement to benefits can be ascertained by the fund, with or without proceedings before the appeals board. Upon the assumption of obligations by the fund pursuant to the director’s determination, the fund shall have a right to immediate possession of any posted security and the custodian, surety, or issuer of any irrevocable letter of credit shall turn over the security to the fund together with the interest that has accrued since the date of the self-insured employer’s default or insolvency. (d) The payment of benefits by the Self-Insurers’ Security Fund from security deposit proceeds shall release and discharge any custodian of the security deposit, surety, any issuer of a letter of credit, and the self-insured employer, from liability to fulfill obligations to provide those same benefits as compensation, but does not release any person from any liability to the fund for full reimbursement. Payment by a surety constitutes a full release of the surety’s liability under the bond to the extent of that payment, and entitles the surety to full reimbursement by the principal or his or her estate. Full reimbursement includes necessary attorney fees and other costs and expenses, without prior claim or proceedings on the part of the injured employee or other beneficiaries. Any decision or determination made, or any settlement approved, by the director or by the appeals board under subdivision (f) shall conclusively be presumed valid and binding as to any and all known claims arising out of the underlying dispute, unless an appeal is made within the time limit specified in Section 5950. (e) The director shall advise the Self-Insurers’ Security Fund promptly after receipt of information indicating that a private self-insured employer may be unable to meet its compensation obligations. The director shall also advise the Self-Insurers’ Security Fund of all determinations and directives made or issued pursuant to this section. All financial, actuarial, or claims information received by the director from any self-insurer may be shared by the director with the Self-Insurers’ Security Fund. (f) Disputes concerning the posting, renewal, termination, exoneration, or return of all or any portion of the security deposit, or any liability arising out of the posting or failure to post security, or adequacy of the security or reasonableness of administrative costs, including legal fees, and arising between or among a surety, the issuer of an agreement of assumption and guarantee of workers’ compensation liabilities, the issuer of a letter of credit, any custodian of the security deposit, a self-insured employer, or the Self-Insurers’ Security Fund shall be resolved by the director. An appeal from the director’s decision or determination may be taken to the appropriate superior court by petition for writ of mandate. Payment of claims from the security deposit or by the Self-Insurers’ Security Fund shall not be stayed pending the resolution of the disputes unless and until the superior court issues a determination staying a payment of claims decision or determination of the director. (Amended by Stats. 2012, Ch. 363, Sec. 13. (SB 863) Effective January 1, 2013.)
  61. 3701.7.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    If an employer with a period of unlawful uninsurance applies to self-insure, the director may impose deposit and fee conditions, and the certificate cannot be granted without written approval from the Self-Insurers’ Security Fund.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3701.7. Where any employer requesting coverage under a new or existing certificate of consent to self-insure has had a period of unlawful uninsurance, either for an applicant in its entirety or for a subsidiary or member of a joint powers authority legally responsible for its own workers’ compensation obligations, the following special conditions shall apply before the director may determine if the requesting employer can operate under a certificate of consent to self-insure: (a) The director may require a deposit of not less than 200 percent of the outstanding liabilities remaining unpaid at the time of application, which had been incurred during the uninsurance period. (b) At the discretion of the director, where a public or private employer has been previously totally uninsured for workers’ compensation pursuant to Section 3700, the director may require an additional deposit not to exceed 100 percent of the total outstanding liabilities for the uninsured period, or the sum of two hundred fifty thousand dollars ($250,000), whichever is greater. (c) In addition to the deposits required by subdivisions (a) and (b), a penalty shall be paid to the Uninsured Employers Fund of 10 percent per year of the remaining unpaid liabilities, for every year liabilities remain outstanding. In addition, an additional application fee, not to exceed one thousand dollars ($1,000), plus assessments, pursuant to Section 3702.5 and subdivision (b) of Section 3745, may be imposed by the director and the Self-Insurers’ Security Fund, respectively, against private self-insured employers. (d) A certificate of consent to self-insure shall not be granted to an applicant that has had a period of unlawful uninsurance without the written approval of the Self-Insurers’ Security Fund. (e) An employer may retrospectively insure the outstanding liabilities arising out of the uninsured period, either before or after an application for self-insurance has been approved. Upon proof of insurance acceptable to the director, no deposit shall be required for the period of uninsurance. The penalties to be paid to the Uninsured Employers Fund shall consist of a one-time payment of 20 percent of the outstanding liabilities for the period of uninsurance remaining unpaid at the time of application, in lieu of any other penalty for being unlawfully uninsured pursuant to this code. (f) In the case of a subsidiary which meets all of the following conditions, a certificate shall issue without penalty: (1) The subsidiary has never had a certificate revoked for reasons set forth in Section 3702. (2) Employee injuries were reported to the Office of Self-Insurance Plans in annual reports. (3) The security deposit of the certificate holder was calculated to include the entity’s compensation liabilities. (4) Application for a separate certificate or corrected certificate is made within 90 days and completed within 180 days of notice from the Office of Self-Insurance Plans. If the requirements of this subdivision are not met, all penalties pursuant to subdivision (b) of Section 3702.9 shall apply. (g) The director may approve an application on the date the application is substantially completed, subject to completion requirements, and may make the certificate effective on an earlier date, covering a period of uninsurance, if the employer complies with the requirements of this section. (h) Any decision by the director may be contested by an entity in the manner provided in Section 3701.5. (i) Nothing in this section shall abrogate the right of an employee to bring an action against an uninsured employer pursuant to Section 3706. (j) Nothing in this statute shall abrogate the right of a self-insured employer to insure against known or unknown claims arising out of the self-insurance period. (Amended by Stats. 2012, Ch. 363, Sec. 14. (SB 863) Effective January 1, 2013.)
  62. 3701.8.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

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    The director may set up an alternative security system for private self-insured employers, and employers in that system must meet deposit and security requirements.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3701.8. (a) As an alternative to each private self-insuring employer securing its own incurred liabilities as provided in Section 3701, the director may provide by regulation for an alternative security system whereby all private self-insureds designated for full participation by the director shall collectively secure their aggregate incurred liabilities through the Self-Insurers’ Security Fund. The regulations shall provide for the director to set a total security requirement for these participating self-insured employers based on a review of their annual reports and any other self-insurer information as may be specified by the director. The Self-Insurers’ Security Fund shall propose to the director a combination of cash and securities, surety bonds, irrevocable letters of credit, insurance, or other financial instruments or guarantees satisfactory to the director sufficient to meet the security requirement set by the director. Upon approval by the director and posting by the Self-Insurers’ Security Fund on or before the date set by the director, that combination shall be the composite deposit. The noncash elements of the composite deposit may be one-year or multiple-year instruments. If the Self-Insurers’ Security Fund fails to post the required composite deposit by the date set by the director, then within 30 days after that date, each private self-insuring employer shall secure its incurred liabilities in the manner required by Section 3701. Self-insured employers not designated for full participation by the director shall meet all requirements as may be set by the director pursuant to subdivision (g). (b) In order to provide for the composite deposit approved by the director, the Self-Insurers’ Security Fund shall assess, in a manner approved by the director, each fully participating private self-insuring employer a deposit assessment payable within 30 days of assessment. The amount of the deposit assessment charged each fully participating self-insured employer shall be set by the Self-Insurers’ Security Fund, based on its reasonable consideration of all the following factors: (1) The total amount needed to provide the composite deposit. (2) The self-insuring employer’s paid or incurred liabilities as reflected in its annual report. (3) The financial strength and creditworthiness of the self-insured. (4) Any other reasonable factors as may be authorized by regulation. (5) In order to make a composite deposit proposal to the director and set the deposit assessment to be charged each fully participating self-insured, the Self-Insurers’ Security Fund shall have access to the annual reports and other information submitted by all self-insuring employers to the director, under terms and conditions as may be set by the director, to preserve the confidentiality of the self-insured’s financial information. (c) Upon payment of the deposit assessment and except as provided herein, the self-insuring employer loses all right, title, and interest in the deposit assessment. To the extent that in any one year the deposit assessment paid by self-insurers is not exhausted in the purchase of securities, surety bonds, irrevocable letters of credit, insurance, or other financial instruments to post with the director as part of the composite deposit, the surplus shall remain posted with the director, and the principal and interest earned on that surplus shall remain as part of the composite deposit in subsequent years. In the event that in any one year the Self-Insurers’ Security Fund fails to post the required composite deposit by the date set the by the director, and the director requires each private self-insuring employer to secure its incurred liabilities in the manner required by Section 3701, then any deposit assessment paid in that year shall be refunded to the self-insuring employer that paid the deposit assessment. (d) If any private self-insuring employer objects to the calculation, posting, or any other aspect of its deposit assessment, upon payment of the assessment in the time provided, the employer shall have the right to appeal the assessment to the director, who shall have exclusive jurisdiction over this dispute. If any private self-insuring employer fails to pay the deposit assessment in the time provided, the director shall order the self-insuring employer to pay a penalty of not less than 10 percent of its deposit assessment, plus interest on any unpaid amount at the prejudgment rate, and to post a separate security deposit in the manner provided by Section 3701. The penalty and interest shall be paid directly to the Self-Insurers’ Security Fund. The director may also revoke the certificate of consent to self-insure of any self-insuring employer who fails to pay the deposit assessment in the time provided. (e) Upon the posting by the Self-Insurers’ Security Fund of the composite deposit with the director, the deposit shall be held until the director determines that a private self-insured employer has failed to pay workers’ compensation as required by this division, and the director orders the Self-Insurers’ Security Fund to commence payment. Upon ordering the Self-Insurers’ Security Fund to commence payment, the director shall make available to the fund that portion of the composite deposit necessary to pay the workers’ compensation benefits of the defaulting self-insuring employer. In the event additional funds are needed in subsequent years to pay the workers’ compensation benefits of any self-insuring employer who defaulted in earlier years, the director shall make available to the Self-Insurers’ Security Fund any portions of the composite deposit as may be needed to pay those benefits. In making the deposit available to the Self-Insurers’ Security Fund, the director shall also allow any amounts as may be reasonably necessary to pay for the administrative and other activities of the fund. (f) The cash portion of the composite deposit shall be segregated from all other funds held by the director, and shall be invested by the director for the sole benefit of the Self-Insurers’ Security Fund and the injured workers of private self-insured employers, and may not be used for any other purpose by the state. Alternatively, the director, in his discretion, may allow the Self-Insurers’ Security Fund to hold, invest, and draw upon the cash portion of the composite deposit as prescribed by regulation. (g) Notwithstanding any other provision of this section, the director shall, by regulation, set minimum credit, financial, or other conditions that a private self-insured must meet in order to be a fully participating self-insurer in the alternative security system. In the event any private self-insuring employer is unable to meet the conditions set by the director, or upon application of the Self-Insurers’ Security Fund to exclude an employer for credit or financial reasons, the director shall exclude the self-insuring employer from full participation in the alternative security system. In the event a self-insuring employer is excluded from full participation, the nonfully participating private self-insuring employer shall post a separate security deposit in the manner provided by Section 3701 and pay a deposit assessment set by the director. Alternatively, the director may order that the nonfully participating private self-insuring employer post a separate security deposit to secure a portion of its incurred liabilities and pay a deposit assessment set by the director. (h) An employer who self-insures through group self-insurance and an employer whose certificate to self-insure has been revoked may fully participate in the alternative security system if both the director and the Self-Insurers’ Security Fund approve the participation of the self-insurer. If not approved for full participation, or if an employer is issued a certificate to self-insure after the composite deposit is posted, the employer shall satisfy the requirements of subdivision (g) for nonfully participating private self-insurers. (i) At all times, a self-insured employer shall have secured its incurred workers’ compensation liabilities either in the manner required by Section 3701 or through the alternative security system, and there shall not be any lapse in the security. (Amended by Stats. 2012, Ch. 363, Sec. 15. (SB 863) Effective January 1, 2013.)
  63. 3701.9.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    After January 1, 2013, certificates of consent to self-insure may not be issued to certain employers, and the director must revoke any such certificate issued to those employers by January 1, 2015.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3701.9. (a) A certificate of consent to self-insure shall not be issued after January 1, 2013, to any of the following: (1) A professional employer organization. (2) A leasing employer, as defined in Section 606.5 of the Unemployment Insurance Code. (3) A temporary services employer, as defined in Section 606.5 of the Unemployment Insurance Code. (4) Any employer, regardless of name or form of organization, which the director determines to be in the business of providing employees to other employers. (b) A certificate of consent to self-insure that has been issued to any employer described in subdivision (a) shall be revoked by the director not later than January 1, 2015. (Added by Stats. 2012, Ch. 363, Sec. 16. (SB 863) Effective January 1, 2013.)
  64. 3702.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    The director may revoke a certificate of consent to self-insure for good cause after a hearing.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702. (a) A certificate of consent to self-insure may be revoked by the director at any time for good cause after a hearing. Good cause includes, among other things, a recommendation by the Self-Insurers’ Security Fund to revoke the certificate of consent, the impairment of the solvency of the employer to the extent that there is a marked reduction of the employer’s financial strength, failure to maintain a security deposit as required by Section 3701, failure to pay assessments of the Self-Insurers’ Security Fund, frequent or flagrant violations of state safety and health orders, the failure or inability of the employer to fulfill his or her obligations, or any of the following practices by the employer or his or her agent in charge of the administration of obligations under this division: (1) Habitually and as a matter of practice and custom inducing claimants for compensation to accept less than the compensation due or making it necessary for them to resort to proceedings against the employer to secure compensation due. (2) Where liability for temporary disability indemnity is not in dispute, intentionally failing to pay temporary disability indemnity without good cause in order to influence the amount of permanent disability benefits due. (3) Intentionally refusing to comply with known and legally indisputable compensation obligations. (4) Discharging or administering his or her compensation obligations in a dishonest manner. (5) Discharging or administering his or her compensation obligations in such a manner as to cause injury to the public or those dealing with the employer. (b) Where revocation is in part based upon the director’s finding of a marked reduction of the employer’s financial strength or the failure or inability of the employer to fulfill his or her obligations, or a practice of discharging obligations in a dishonest manner, it is a condition precedent to the employer’s challenge or appeal of the revocation that the employer have in effect insurance against liability to pay compensation. (c) The director may hold a hearing to determine whether good cause exists to revoke an employer’s certificate of consent to self-insure if the employer is cited for a willful, or repeat serious violation of the standard adopted pursuant to Section 6401.7 and the citation has become final. (Amended by Stats. 2012, Ch. 363, Sec. 17. (SB 863) Effective January 1, 2013.)
  65. 3702.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Only an insurer admitted to transact workers’ compensation insurance in California, or a person with a certificate of consent, may contract to administer self-insured employers’ claims as a third-party administrator.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.1. (a) No person, firm, or corporation, other than an insurer admitted to transact workers’ compensation insurance in this state, shall contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers’ workers’ compensation claims. (b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers’ compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director. (c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers’ compensation claims for any self-insured employer. (d) A third-party administrator retained by a self-insured employer to administer the employer’s workers’ compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employer’s annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employer’s responsibilities with respect to the report. (Amended by Stats. 2009, Ch. 140, Sec. 137. (AB 1164) Effective January 1, 2010.)
  66. 3702.10.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    The director may adopt, amend, and repeal regulations needed to carry out specified workers’ compensation insurance provisions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.10. The director, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, may adopt, amend, and repeal rules and regulations reasonably necessary to carry out the purposes of Section 129 and Article 1 (commencing with Section 3700), Article 2 (commencing with Section 3710), and Article 2.5 (commencing with Section 3740). This authorization includes, but is not limited to, the adoption of regulations to do all of the following: (a) Specifying what constitutes ability to self-insure and to pay any compensation which may become due under Section 3700. (b) Specifying what constitutes a marked reduction of an employer’s financial strength. (c) Specifying what constitutes a failure or inability to fulfill the employer’s obligations under Section 3702. (d) Interpreting and defining the terms used. (e) Establishing procedures and standards for hearing and determinations, and providing for those determinations to be appealed to the appeals board. (f) Specifying the standards, form, and content of agreements, forms, and reports between parties who have obligations pursuant to this chapter. (g) Providing for the combinations and relative liabilities of security deposits, assumptions, and guarantees used pursuant to this chapter. (h) Disclosing otherwise confidential financial information concerning self-insureds to courts or the Self-Insurers’ Security Fund and specifying appropriate safeguards for that information. (i) Requiring an amount to be added to each security deposit to secure the cost of administration of claims and to pay all legal costs. (j) Regulating the workers’ compensation self-insurance obligations of self-insurance groups and professional employer organizations, leasing employers as defined in Section 606.5 of the Unemployment Insurance Code, or temporary services employers, as defined in Section 606.5 of the Unemployment Insurance Code, holding certificates of consent to self-insure. (Amended by Stats. 2012, Ch. 363, Sec. 22. (SB 863) Effective January 1, 2013.)
  67. 3702.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Self-insured employers must file annual reports; public self-insured employers must provide additional information, and the director may control reporting details and publish limited public summaries.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.2. (a) All self-insured employers shall file a self-insurer’s annual report in a form prescribed by the director. Public self-insured employers shall provide detailed information as the director determines necessary to evaluate the costs of administration, workers’ compensation benefit expenditures, and solvency and performance of the public self-insured employer workers’ compensation programs, on a schedule established by the director. The director may grant deferrals to public self-insured employers that are not yet capable of accurately reporting the information required, giving priority to bringing larger programs into compliance with the more detailed reporting. (b) To enable the director to determine the amount of the security deposit required by subdivision (c) of Section 3701, the annual report of a self-insured employer who has self-insured both state and federal workers’ compensation liability shall also set forth (1) the amount of all compensation liability incurred, paid-to-date, and estimated future liability under both this chapter and under the federal Longshore and Harbor Workers’ Compensation Act (33 U.S.C. Sec. 901 et seq.), and (2) the identity and the amount of the security deposit securing the employer’s liability under state and federal self-insured programs. (c) The director shall annually prepare an aggregated summary of all self-insured employer liability to pay compensation reported on the self-insurers’ employers annual reports, including a separate summary for public and private employer self-insurers. The summaries shall be in the same format as the individual self-insured employers are required to report that liability on the employer self-insurer’s annual report forms prescribed by the director. The aggregated summaries shall be made available to the public on the self-insurance section of the department’s Internet Web site. This subdivision does not authorize the director to release or make available information regarding private self-insured employers that is aggregated by industry or business type, that identifies individual self-insured filers, or that includes any individually identifiable claimant information. The director may publish information regarding the costs of administration, workers’ compensation benefit expenditures, and solvency and performance of public self-insured employers’ workers’ compensation programs, including, but not limited to, information aggregated by industry or business type, and that may contain data identifying individual public self-insured filers, their third-party administrators, and their joint powers authorities, as long as the information does not include any individually identifiable claimant information. For purposes of this section, “individually identifiable claimant information” means any data concerning an injury or claim that is linked to a uniquely identifiable employee, employee’s dependent, or a specific claim. (d) The director may release a copy, or make available an electronic version, of the data contained in any public sector employer self-insurer’s annual reports received from an individual public entity self-insurer or from a joint powers authority employer and its membership. However, the release of any annual report information by the director shall not include any portion of any listing of open indemnity claims that contains individually identifiable claimant information, or any portion of excess insurance coverage information that contains any individually identifiable claimant information. (Amended by Stats. 2018, Ch. 538, Sec. 3. (AB 2334) Effective January 1, 2019.)
  68. 3702.3.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If required reports or information are not submitted, a civil penalty may be assessed.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.3. Failure to submit reports or information as deemed necessary by the director to implement the purposes of Section 3701, 3702, or 3702.2 may result in the assessment of a civil penalty as set forth in subdivision (a) of Section 3702.9. Moneys collected shall be used for the administration of self-insurance plans. (Amended by Stats. 1992, Ch. 532, Sec. 1. Effective January 1, 1993.)
  69. 3702.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    This section assigns costs, fee-setting, fund handling, and investment duties for the private self-insured program and related funds.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.5. (a) (1) The cost of administration of the public self-insured program by the Director of Industrial Relations shall be borne by the Workers’ Compensation Administration Revolving Fund. (2) The cost of administration of the private self-insured program by the Director of Industrial Relations shall be borne by the private self-insurers through payment of certificate fees which shall be established by the director in broad ranges based on the comparative numbers of employees insured by the private self-insurers and the number of adjusting locations. The director may assess other fees as necessary to cover the costs of special audits or services rendered to private self-insured employers. The director may assess a civil penalty for late filing as set forth in subdivision (a) of Section 3702.9. (b) All revenues from fees and penalties paid by private self-insured employers shall be deposited into the Self-Insurance Plans Fund, which is hereby created for the administration of the private self-insurance program. Any unencumbered balance in subdivision (a) of Item 8350-001-001 of the Budget Act of 1983 shall be transferred to the Self-Insurance Plans Fund. The director shall annually eliminate any unused surplus in the Self-Insurance Plans Fund by reducing certificate fee assessments by an appropriate amount in the subsequent year. Moneys paid into the Self-Insurance Plans Fund for administration of the private self-insured program shall not be used by any other department or agency or for any purpose other than administration of the private self-insurance program. Detailed accountability shall be maintained by the director for any security deposit or other funds held in trust for the Self-Insurer’s Security Fund in the Self-Insurance Plans Fund. Moneys held by the director shall be invested in the Surplus Money Investment Fund. Interest shall be paid on all moneys transferred to the General Fund in accordance with Section 16310 of the Government Code. The Treasurer’s and Controller’s administrative costs may be charged to the interest earnings upon approval of the director. (Amended by Stats. 2012, Ch. 363, Sec. 20. (SB 863) Effective January 1, 2013.)
  70. 3702.6.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    The director must run an audit program for private self-insured employers, ensure audits happen on a three-year cycle, and may order special audits of public self-insured employers for good cause. Public self-insurers must tell their governing boards certain liability and funding information within 90 days after their annual report.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.6. (a) The director shall establish an audit program addressing the adequacy of estimates of future liability of claims for all private self-insured employers, and shall ensure that all private self-insured employers are audited within a three-year cycle by the Office of Self Insurance Plans. (b) Each public self-insurer shall advise its governing board within 90 days after submission of the self-insurer’s annual report of the total liabilities reported and whether current funding of those workers’ compensation liabilities is in compliance with the requirements of Government Accounting Standards Board Publication No. 10. (c) The director shall, upon a showing of good cause, order a special audit of any public self-insured employer to determine the adequacy of estimates of future liability of claims. (d) For purposes of this section, “good cause” means that there exists circumstances sufficient to raise concerns regarding the adequacy of estimates of future liability of claims to justify a special audit. (Amended by Stats. 1992, Ch. 532, Sec. 3. Effective January 1, 1993.)
  71. 3702.7.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    The director may revoke a certificate of consent to administer claims of self-insured employers for good cause after a hearing, or impose a fine instead.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.7. A certificate of consent to administer claims of self-insured employers may be revoked by the director at any time for good cause after a hearing. Good cause includes, but is not limited to, the violation of subsection (1), (2), (3), (4), or (5) of subdivision (a) of Section 3702. In lieu of revocation of a certificate of consent, the director may impose a fine of not less than fifty dollars ($50) nor more than five hundred dollars ($500) for each violation. (Added by Stats. 1984, Ch. 1521, Sec. 4. Operative July 1, 1985, by Sec. 5 of Ch. 1521.)
  72. 3702.8.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    This section requires former self-insured employers to keep meeting certain workers’ compensation security obligations, and allows some employers to use a special excess workers’ compensation policy instead.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.8. (a) Employers who have ceased to be self-insured employers shall discharge their continuing obligations to secure the payment of workers’ compensation that accrued during the period of self-insurance, for purposes of Sections 3700, 3700.5, 3706, and 3715, and shall comply with all of the following obligations of current certificate holders: (1) Filing annual reports as deemed necessary by the director to carry out the requirements of this chapter. (2) In the case of a private employer, depositing and maintaining a security deposit for accrued liability for the payment of any workers’ compensation that may become due, pursuant to subdivision (b) of Section 3700 and Section 3701, except as provided in subdivision (c). (3) Paying within 30 days all assessments of which notice is sent, pursuant to subdivision (b) of Section 3745, within 36 months from the last day the employer’s certificate of self-insurance was in effect. Assessments shall be based on the benefits paid by the employer during the last full calendar year of self-insurance on claims incurred during that year. (b) In addition to proceedings to establish liabilities and penalties otherwise provided, a failure to comply may be the subject of a proceeding before the director. An appeal from the director’s determination shall be taken to the appropriate superior court by petition for writ of mandate. (c) Notwithstanding subdivision (a), any employer who is currently self-insured or who has ceased to be self-insured may purchase a special excess workers’ compensation policy to discharge any or all of the employer’s continuing obligations as a self-insurer to pay compensation or to secure the payment of compensation. (1) The special excess workers’ compensation insurance policy shall be issued by an insurer authorized to transact workers’ compensation insurance in this state. (2) Each carrier’s special excess workers’ compensation policy shall be approved as to form and substance by the Insurance Commissioner, and rates for special excess workers’ compensation insurance shall be subject to the filing requirements set forth in Section 11735 of the Insurance Code. (3) Each special excess workers’ compensation insurance policy shall be submitted by the employer to the director. The director shall adopt and publish minimum insurer financial rating standards for companies issuing special excess workers’ compensation policies. (4) Upon acceptance by the director, a special excess workers’ compensation policy shall provide coverage for all or any portion of the purchasing employer’s claims for compensation arising out of injuries occurring during the period the employer was self-insured in accordance with Sections 3755, 3756, and 3757 of the Labor Code and Sections 11651 and 11654 of the Insurance Code. The director’s acceptance shall discharge the Self-Insurer’s Security Fund, without recourse or liability to the Self-Insurer’s Security Fund, of any continuing liability for the claims covered by the special excess workers’ compensation insurance policy. (5) For public employers, no security deposit or financial guarantee bond or other security shall be required. The director shall set minimum financial rating standards for insurers issuing special excess workers’ compensation policies for public employers. (d) (1) In order for the special excess workers’ compensation insurance policy to discharge the full obligations of a private employer to maintain a security deposit with the director for the payment of self-insured claims, applicable to the period to be covered by the policy, the special excess policy shall provide coverage for all claims for compensation arising out of that liability. The employer shall maintain the required deposit for the period covered by the policy with the director for a period of three years after the issuance date of the special excess policy. (2) If the special workers’ compensation insurance policy does not provide coverage for all of the continuing obligations for which the private self-insured employer is liable, to the extent the employer’s obligations are not covered by the policy a private employer shall maintain the required deposit with the director. In addition, the employer shall maintain with the director the required deposit for the period covered by the policy for a period of three years after the issuance date of the special excess policy. (e) The director shall adopt regulations pursuant to Section 3702.10 that are reasonably necessary to implement this section in order to reasonably protect injured workers, employers, the Self-Insurers’ Security Fund, and the California Insurance Guarantee Association. (f) The posting of a special excess workers’ compensation insurance policy with the director shall discharge the obligation of the Self-Insurer’s Security Fund pursuant to Section 3744 to pay claims in the event of an insolvency of a private employer to the extent of coverage of compensation liabilities under the special excess workers’ compensation insurance policy. The California Insurance Guarantee Association and the Self-Insurers’ Security Fund shall be advised by the director whenever a special excess workers’ compensation insurance policy is posted. (Amended by Stats. 2012, Ch. 363, Sec. 21. (SB 863) Effective January 1, 2013.)
  73. 3702.9.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    The director may order a self-insured employer to comply, pay restitution, and pay civil penalties for violating this article.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3702.9. (a) In addition to remedies and penalties otherwise provided for a failure to secure the payment of compensation, the director may, after a determination that an obligation created in this article has been violated, also enter an order against any self-insured employer, including employers who are no longer self-insured, but who are required to comply with Section 3702.8, directing compliance, restitution for any losses, and a civil penalty in an amount not to exceed the following: (1) For a failure to file a complete or timely annual report, an amount up to 5 percent of the incurred liabilities in the last report or one thousand five hundred dollars ($1,500), whichever is less, for each 30 days or portion thereof during which there is a failure. (2) For failure to deposit and maintain a security deposit, an amount up to 10 percent of the increase not timely filed or five thousand dollars ($5,000), whichever is less, for each 30 days or portion thereof during which there is a failure. (3) For a failure to timely or completely pay an assessment, an amount up to the assessment or two thousand five hundred dollars ($2,500), whichever is less, for each 30 days or portion thereof during which there is a failure. (4) Where the failure was by an employer which knew or reasonably should have known of the obligation, the director shall, in addition, award reimbursement for all expenditures and costs by the fund or any intervening party, including a reasonable attorney fee. (5) Where the failure was malicious, fraudulent, in bad faith, or a repeated violation, the director may award, as an additional civil penalty, liquidated damages of up to double the amounts assessed under paragraphs (1) to (4), inclusive, for deposit in the General Fund. (b) An employer may deposit and maintain a security deposit or pay an assessment, reserving its right to challenge the amount or liability therefor at a hearing. If the director or the appeals board or a court, upon appeal, concludes that the employer is not liable or the amounts are excessive, then the director may waive, release, compromise, refund, or otherwise remit amounts which had been paid or deposited by an employer. The director may condition the waiver, release, compromise, refund, or remittance upon the present and continued future compliance with the obligations of subdivision (a) of Section 3702.8 for a period up to two years. (c) Notwithstanding subdivision (b), where a violation has occurred, the director may waive, release, compromise, or otherwise reduce any civil penalty otherwise due upon a showing that a violation occurred through the employer’s mistake, inadvertence, surprise, or excusable neglect. Neglect is not excusable within the meaning of this subdivision where the employer knew, or reasonably should have known, of the obligations. (Added by Stats. 1986, Ch. 1128, Sec. 12. Effective September 25, 1986.)
  74. 3703.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    A self-insurer does not have to pay certain compensation sums into the State Compensation Insurance Fund, except life pensions, if its certificate has not been revoked and it keeps the required bond or securities on deposit. It may also fully administer compensation benefits assessed against it.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3703. So long as the certificate has not been revoked, and the self-insurer maintains on deposit the requisite bond or securities, the self-insurer shall not be required or obliged to pay into the State Compensation Insurance Fund any sums covering liability for compensation excepting life pensions; and the self-insurer may fully administer any compensation benefits assessed against the self-insurer. (Amended by Stats. 1959, Ch. 951.)
  75. 3705.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    The Self-Insurers’ Security Fund or the surety paying compensation gets the same legal preference over the principal’s debts or estate as the person directly entitled to the compensation.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3705. The Self-Insurers’ Security Fund or the surety making payment of compensation hereunder shall have the same preference over the other debts of the principal or his or her estate as is given by law to the person directly entitled to the compensation. (Amended by Stats. 1986, Ch. 1128, Sec. 14. Effective September 25, 1986.)
  76. 3706.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If an employer does not secure payment of compensation, an injured employee or the employee’s dependents may sue the employer for damages.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3706. If any employer fails to secure the payment of compensation, any injured employee or his dependents may bring an action at law against such employer for damages, as if this division did not apply. (Amended by Stats. 1971, Ch. 1598.)
  77. 3706.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    This section says certain workers' compensation penalties and related article provisions do not apply to specified board, governing body, and private nonprofit members when they are officiating amateur sporting events and are excluded from the employee definition.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3706.5. The provisions of this article and Sections 4553, 4554, and 4555, and any other penalty provided by law for failure to secure the payment of compensation for employees, shall not apply to individual members of a board or governing body of a public agency or to members of a private, nonprofit organization, if the agency or organization performs officiating services relating to amateur sporting events and those members are excluded from the definition of “employee” pursuant to paragraph (10) of subdivision (a) of Section 3352. (Amended by Stats. 2017, Ch. 770, Sec. 6. (SB 189) Effective January 1, 2018.)
  78. 3707.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    An injured employee or the employee’s dependents may attach the employer’s property in the action, subject to a court-set amount, to secure payment of any later judgment.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3707. The injured employee or his dependents may in such action attach the property of the employer, at any time upon or after the institution of such action, in an amount fixed by the court, to secure the payment of any judgment which is ultimately obtained. The provisions of the Code of Civil Procedure, not inconsistent with this division, shall govern the issuance of, and proceedings upon such attachment. (Enacted by Stats. 1937, Ch. 90.)
  79. 3708.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    In covered actions, the employer is presumed negligent and must rebut that presumption; the employer cannot rely on contributory negligence, assumed risk, or a fellow servant’s negligence as defenses, and no contract or regulation may restore those defenses.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3708. In such action it is presumed that the injury to the employee was a direct result and grew out of the negligence of the employer, and the burden of proof is upon the employer, to rebut the presumption of negligence. It is not a defense to the employer that the employee was guilty of contributory negligence, or assumed the risk of the hazard complained of, or that the injury was caused by the negligence of a fellow servant. No contract or regulation shall restore to the employer any of the foregoing defenses. This section shall not apply to any employer of an employee, as defined in subdivision (d) of Section 3351, with respect to such employee, but shall apply to employers of employees described in subdivision (b) of Section 3715, with respect to such employees. (Amended by Stats. 1977, Ch. 17.)
  80. 3708.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If an employee sues for damages, the employee must promptly send the complaint to the Uninsured Employers Fund by personal service or certified mail.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3708.5. If an employee brings such an action for damages, the employee shall forthwith give a copy of the complaint to the Uninsured Employers Fund of the action by personal service or certified mail. Proof of such service shall be filed in such action. If a civil action has been initiated against the employer pursuant to Section 3717, the actions shall be consolidated. (Added by Stats. 1980, Ch. 1091.)
  81. 3709.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If a damages judgment is obtained against an employer, compensation already awarded, paid, or secured by the employer is credited against that judgment, and the director’s fund payment gets a first lien.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3709. If, as a result of such action for damages, a judgment is obtained against the employer, any compensation awarded, paid, or secured by the employer shall be credited against the judgment. The court shall allow as a first lien against such judgment the amount of compensation paid by the director from the Uninsured Employers Fund pursuant to Section 3716. Such judgment shall include a reasonable attorney’s fee fixed by the court. The director, as administrator of the Uninsured Employers Fund, shall have a first lien against any proceeds of settlement in such action, before or after judgment, in the amount of compensation paid by the director from the Uninsured Employers Fund pursuant to Section 3716. No satisfaction of a judgment in such action, in whole or in part, shall be valid as against the director without giving the director notice and a reasonable opportunity to perfect and satisfy his lien. (Amended by Stats. 1980, Ch. 1091.)
  82. 3709.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    After court-fixed attorney’s fees are paid, the employer and the Uninsured Employers Fund are relieved from paying further compensation up to the applicable balance of the judgment. The appeals board must credit the recovered amount against compensation liability, excluding amounts used for attorney’s fees and costs.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 1. Insurance and Security [3700 - 3709.5] ( Article 1 enacted by Stats. 1937, Ch. 90. ) ## 3709.5. After the payment of attorney’s fees fixed by the court, 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, or such portion as has been satisfied. After the satisfaction by the employer of the attorney’s fees fixed by the court, the Uninsured Employers Fund shall be relieved from the obligation to pay further compensation to or on behalf of the employee pursuant to Section 3716, up to the entire amount of the balance of the judgment, if satisfied, or such portion as has been satisfied. The appeals board shall allow as a credit to the employer and to the Uninsured Employers Fund, to be applied against the liability for compensation, the amount recovered by the employee in such action, either by settlement or after the judgment, as has not been applied to the expense of attorney’s fees and costs. (Added by Stats. 1980, Ch. 1091.)
  83. 3710.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    The Director of Industrial Relations must enforce this article and may hire staff and adopt rules needed to administer it.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3710. (a) The Director of Industrial Relations shall enforce the provisions of this article. The director may employ necessary investigators, clerks, and other employees, and make use of the services of any employee of the department whom he may assign to assist him in the enforcement of this article. Prosecutions for criminal violations of this division may be conducted by the appropriate public official of the county in which the offense is committed, by the Attorney General, or by any attorney in the civil service of the Department of Industrial Relations designated by the director for such purpose. (b) The director, in accordance with the provisions of Chapter 4 (commencing at Section 11370) of Part 1 of Division 3 of Title 2 of the Government Code, may adopt, amend and repeal such rules and regulations as are reasonably necessary for the purpose of enforcing and administering this article and as are not inconsistent with law. (c) As used in this article, “director” means the Director of Industrial Relations or the director’s designated agents. (Amended by Stats. 1980, Ch. 852.)
  84. 3710.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    If an employer has not secured required compensation, the director must issue a stop order and the employer cannot use employee labor until compliant.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3710.1. Where an employer has failed to secure the payment of compensation as required by Section 3700, the director shall issue and serve on such employer a stop order prohibiting the use of employee labor by such employer until the employer’s compliance with the provisions of Section 3700. Such stop order shall become effective immediately upon service. Any employee so affected by such work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. Such employer may protest the stop order by making and filing with the director a written request for a hearing within 20 days after service of such stop order. Such hearing shall be held within 5 days from the date of filing such request. The director shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter the director shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings and findings. A writ of mandate may be taken from the findings to the appropriate superior court. Such writ must be taken within 45 days after the mailing of the notice of findings and findings. (Repealed and added by Stats. 1980, Ch. 852.)
  85. 3710.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    A covered employer-related person must obey a stop order under Section 3710.1, and failing to do so is a misdemeanor. The director may seek court relief. A separate misdemeanor applies for failing to get required workers’ compensation insurance or a self-insurance certificate.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3710.2. Failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order issued and served upon him or her pursuant to Section 3710.1 is a misdemeanor punishable by imprisonment in the county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. Fines shall be paid into the State Treasury to the credit of the Uninsured Employers Fund. The director may also obtain injunctive and other relief from the courts to carry out the purposes of Section 3710.1. The failure to obtain a policy of workers’ compensation insurance or a certificate of consent to self-insure as required by Section 3700 is a misdemeanor in accordance with Section 3700.5. (Amended by Stats. 1991, Ch. 600, Sec. 1.)
  86. 3710.3.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    If a stop order is issued under Section 3710.1 for certain carriers, the director must send it to the agency with jurisdiction within 30 days.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3710.3. Whenever a stop order has been issued pursuant to Section 3710.1 to a motor carrier of property subject to the jurisdiction and control of the Department of Motor Vehicles or to a household goods carrier, passenger stage corporation, or charter-party carrier of passengers subject to the jurisdiction and control of the Public Utilities Commission, the director shall transmit the stop order to the Public Utilities Commission or the Department of Motor Vehicles, whichever has jurisdiction over the affected carrier, within 30 days. (Amended by Stats. 1998, Ch. 485, Sec. 123. Effective January 1, 1999.)
  87. 3711.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    Authorized investigators may require an employer to provide a written statement about its insurer or workers’ compensation compliance, and nonresponse can trigger consequences and a $500 penalty for insured employers.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3711. The director, an investigator for the Department of Insurance Fraud Bureau or its successor, or a district attorney investigator assigned to investigate workers’ compensation fraud may, at any time, require an employer to furnish a written statement showing the name of his or her insurer or the manner in which the employer has complied with Section 3700. Failure of the employer for a period of 10 days to furnish the written statement is prima facie evidence that he or she has failed or neglected in respect to the matters so required. The 10-day period may not be construed to allow an uninsured employer, so found by the director, any extension of time from the application of the provisions of Section 3710.1. An insured employer who fails to respond to an inquiry respecting his or her status as to his or her workers’ compensation security shall be assessed and required to pay a penalty of five hundred dollars ($500) to the director for deposit in the State Treasury to the credit of the Uninsured Employers Fund. In any prosecution under this article, the burden of proof is upon the defendant to show that he or she has secured the payment of compensation in one of the two ways set forth in Section 3700. (Amended by Stats. 2004, 4th Ex. Sess., Ch. 2, Sec. 4. Effective March 6, 2005.)
  88. 3712.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    Businesses operating without full compensation security may face director enforcement, court restraint orders, and monetary penalties; in related superior court proceedings, no filing fee may be charged to the plaintiff.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3712. (a) The securing of the payment of compensation in a way provided in this division is essential to the functioning of the expressly declared social public policy of this state in the matter of workers’ compensation. The conduct or operation of any business or undertaking without full compensation security, in continuing violation of social policy, shall be subject to imposition of business strictures and monetary penalties by the director, including, but not limited to, resort to the superior court of any county in which all or some part of the business is being thus unlawfully conducted or operated, for carrying out the intent of this article. (b) In a proceeding before the superior court in matters concerned with this article, no filing fee shall be charged to the plaintiff; nor may any charge or cost be imposed for any act or service required of or done by any state or county officer or employee in connection with the proceeding. If the court or the judge before whom the order to show cause in the proceeding is made returnable, finds that the defendant is conducting or operating a business or undertaking without the full compensation security required, the court or judge shall forthwith, and without continuance, issue an order restraining the future or further conduct and operation of the business or undertaking so long as the violation of social public policy continues. The action shall be prosecuted by the Attorney General of California, the district attorney of the county in which suit is brought, the city attorney of any city in which such a business or undertaking is being operated or conducted without full compensation security, or any attorney possessing civil service status who is an employee of the Department of Industrial Relations who may be designated by the director for that purpose. No finding made in the course of any such action is binding on the appeals board in any subsequent proceeding before it for benefits under this division. (Amended by Stats. 1982, Ch. 517, Sec. 309.)
  89. 3714.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    Some cases involving certain workers’ compensation funds or death without dependents must be handled only in specified ways and locations, with limited exceptions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3714. (a) All cases involving the Uninsured Employers Fund or the Subsequent Injuries Fund as a party or involving death without dependents shall only be heard for conference, mandatory settlement conference pursuant to subdivision (d) of Section 5502, standby conference, or rating calendar at the district Workers’ Compensation Appeals Board located in San Francisco, Los Angeles, Van Nuys, Anaheim, Sacramento, or San Diego, except for good cause shown and with the consent of the director. This subdivision shall not apply to trials or hearings pursuant to Section 5309 or to expedited hearings pursuant to subdivision (b) of Section 5502. (b) For the cases specified in subdivision (a), the presiding judge of the Workers’ Compensation Appeals Board located in San Francisco, Los Angeles, Van Nuys, Anaheim, Sacramento, or San Diego shall have the authority, either by standing order or on a case-by-case basis, to order a conference, mandatory settlement conference pursuant to subdivision (d) of Section 5502, standby conference, or rating calendar in which no testimony will be taken to be conducted by telephone conference call among the parties and their attorneys of record who do not reside in the county in which that appeals board is located. The cost of the scheduling of the conference call shall be charged against the appropriate fund of the department. (c) Any filings of documents necessary for the proceedings specified in subdivisions (a) and (b) may be served on the appeals board and the parties by facsimile machine, but if so served, within five workings days service shall be made on the appeals board and the parties as required by regulation. (d) This section shall remain in effect for two years commencing on the date that the administrative director certifies and publishes that the rearrangement of judicial resources required by this section, and conference call facilities required for this section are in place. The certification shall be published in the California Notice Register, but shall be required to have been posted in the office of each appeals board at least 30 days prior to that publication. Notwithstanding this section, with the permission of the presiding judge and under standards set by the administrative director, parties may be permitted to conclude existing cases where they were filed. This section shall cease to be operative at the end of that two-year period, and shall be repealed on January 1 following that date. (Added by Stats. 1992, Ch. 611, Sec. 1. Effective January 1, 1993. Section operative on date prescribed by subd. (d). Inoperative two years after operative date. Repealed on January 1 after inoperative date, by its own provisions.)
  90. 3715.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    Workers and certain dependents may apply to the appeals board for compensation if the employer failed to secure compensation coverage; the board must hear the claim and award benefits, and the employer must pay or post a bond.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3715. (a) Any employee, except an employee as defined in subdivision (d) of Section 3351, whose employer has failed to secure the payment of compensation as required by this division, or his or her dependents in case death has ensued, may, in addition to proceeding against his or her employer by civil action in the courts as provided in Section 3706, file his or her application with the appeals board for compensation and the appeals board shall hear and determine the application for compensation in like manner as in other claims and shall make the award to the claimant as he or she would be entitled to receive if the employer had secured the payment of compensation as required, and the employer shall pay the award in the manner and amount fixed thereby or shall furnish to the appeals board a bond, in any amount and with any sureties as the appeals board requires, to pay the employee the award in the manner and amount fixed thereby. (b) Notwithstanding this section or any other provision of this chapter except Section 3708, any person described in subdivision (d) of Section 3351 who is (1) engaged in household domestic service who is employed by one employer for over 52 hours per week, (2) engaged as a part-time gardener in connection with a private dwelling, if the number of hours devoted to the gardening work for any individual regularly exceeds 44 hours per month, or (3) engaged in casual employment where the work contemplated is to be completed in not less than 10 working days, without regard to the number of persons employed, and where the total labor cost of the work is not less than one hundred dollars ($100) (which amount shall not include charges other than for personal services), shall be entitled, in addition to proceeding against his or her employer by civil action in the courts as provided in Section 3706, to file his or her application with the appeals board for compensation. The appeals board shall hear and determine the application for compensation in like manner as in other claims, and shall make the award to the claimant as he or she would be entitled to receive if the person’s employer had secured the payment of compensation as required, and the employer shall pay the award in the manner and amount fixed thereby, or shall furnish to the appeals board a bond, in any amount and with any sureties as the appeals board requires, to pay the employee the award in the manner and amount fixed thereby. It is the intent of the Legislature that the amendments to this section by Chapter 17 of the Statutes of 1977, make no change in the law as it applied to those types of employees covered by this subdivision prior to the effective date of Chapter 1263 of the 1975 Regular Session. (c) In any claim in which it is alleged that the employer has failed to secure the payment of compensation, the director, only for purposes of this section and Section 3720, shall determine, on the basis of the evidence available to him or her, whether the employer was prima facie illegally uninsured. A finding that the employer was prima facie illegally uninsured shall be made when the director determines that there is sufficient evidence to constitute a prima facie case that the employer employed an employee on the date of the alleged injury and had failed to secure the payment of compensation, and that the employee was injured arising out of, and occurring in the course of, the employment. Failure of the employer to furnish within 10 days the written statement in response to a written demand for a written statement prescribed in Section 3711, addressed to the employer at its address as shown on the official address record of the appeals board, shall constitute in itself sufficient evidence for a prima facie case that the employer failed to secure the payment of compensation. A written denial by the insurer named in the statement furnished by the employer as prescribed in Section 3711, that the employer was so insured as claimed, or the nonexistence of a valid certificate of consent to self-insure for the time of the claimed injury, if the statement furnished by the employer claims the employer was self-insured, shall constitute in itself sufficient evidence for a prima facie case that the employer had failed to secure the payment of compensation. The nonexistence of a record of the employer’s insurance with the Workers’ Compensation Insurance Rating Bureau shall constitute in itself sufficient evidence for a prima facie case that the employer failed to secure the payment of compensation. The unrebutted written declaration under penalty of perjury by the injured employee, or applicant other than the employee, that the employee was employed by the employer at the time of the injury, and that he or she was injured in the course of his or her employment, shall constitute, in itself, sufficient evidence for a prima facie case that the employer employed the employee at the time of the injury, and that the employee was injured arising out of, and occurring in the course of, the employment. (d) When the director determines that an employer was prima facie illegally uninsured, the director shall mail a written notice of the determination to the employer at his or her address as shown on the official address record of the appeals board, and to any other more recent address the director may possess. The notice shall advise the employer of its right to appeal the finding, and that a lien may be placed against the employer’s and any parent corporation’s property, or the property of substantial shareholders of a corporate employer as defined by Section 3717. Any employer aggrieved by a finding of the director that it was prima facie illegally uninsured may appeal the finding by filing a petition before the appeals board. The petition shall be filed within 20 days after the finding is issued. The appeals board shall hold a hearing on the petition within 20 days after the petition is filed with the appeals board. The appeals board shall have exclusive jurisdiction to determine appeals of the findings by the director, and no court of this state has jurisdiction to review, annul, or suspend the findings or the liens created thereunder, except as provided by Article 2 (commencing with Section 5950) of Chapter 7 of Part 4 of Division 4. (e) Any claim brought against an employer under this section may be resolved by the director by compromise and release or stipulated findings and award as long as the appeals board has acquired jurisdiction over the employer and the employer has been given notice and an opportunity to object. Notice may be given by service on the employer of an appeals board notice of intention to approve the compromise and release or stipulated findings and award. The employer shall have 20 days after service of the notice of intention to file an objection with the appeals board and show good cause therefor. If the employer objects, the appeals board shall determine if there is good cause for the objection. If the appeals board finds good cause for the objection, the director may proceed with the compromise and release or stipulated findings and award if doing so best serves the interest of the Uninsured Employers Fund, but shall have no cause of action against the employer under Section 3717 unless the appeals board case is tried to its conclusion and the employer is found liable. If the appeals board does not find good cause for the objection, and the compromise and release or stipulated findings and award is approved, the Uninsured Employers Fund shall have a cause of action against the employer pursuant to Section 3717. (f) The director may adopt regulations to implement and interpret the procedures provided for in this section. (Amended by Stats. 1989, Ch. 461, Sec. 1.)
  91. 3716.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    If an allegedly uninsured employer does not pay or post the required bond after an award notice, the director pays the award from the Uninsured Employers Benefits Trust Fund when the entitled person applies.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3716. (a) If the employer fails to pay the compensation required by Section 3715 to the person entitled thereto, or fails to furnish the bond required by Section 3715 within a period of 10 days after notification of the award, the award, upon application by the person entitled thereto, shall be paid by the director from the Uninsured Employers Benefits Trust Fund. The expenses of the director in administering these provisions, directly or by contract pursuant to Section 3716.1, shall be paid from the Workers’ Compensation Administration Revolving Fund. Refunds may be paid from the Uninsured Employers Benefits Trust Fund for amounts remitted erroneously to the fund, or the director may authorize offsetting subsequent remittances to the fund. (b) It is the intent of the Legislature that the Uninsured Employers Benefits Trust Fund is created to ensure that workers who happen to be employed by illegally uninsured employers are not deprived of workers’ compensation benefits, and is not created as a source of contribution to insurance carriers, or self-insured, or legally insured employers. The Uninsured Employers Benefits Trust Fund has no liability for claims of occupational disease or cumulative injury unless no employer during the period of the occupational disease or cumulative injury during which liability is imposed under Section 5500.5 was insured for workers’ compensation, was permissibly self-insured, or was legally uninsured. No employer has a right of contribution against the Uninsured Employers Benefits Trust Fund for the liability of an illegally uninsured employer under an award of benefits for occupational disease or cumulative injury, nor may an employee in a claim of occupational disease or cumulative injury elect to proceed against an illegally uninsured employer. (c) The Uninsured Employers Benefits Trust Fund has no liability to pay for medical, surgical, chiropractic, hospital, or other treatment, the liability for which treatment is imposed upon the employer pursuant to Section 4600, and which treatment has been provided or paid for by the State Department of Health Services pursuant to the California Medical Assistance Program. (d) The Uninsured Employers Benefits Trust Fund shall have no liability to pay compensation, nor shall it be joined in any appeals board proceeding, unless the employer alleged to be illegally uninsured shall first either have made a general appearance or have been served with the application specified in Section 3715 and with a special notice of lawsuit issued by the appeals board. The special notice of lawsuit shall be in a form to be prescribed by the appeals board, and it shall contain at least the information and warnings required by the Code of Civil Procedure to be contained in the summons issued in a civil action. The special notice of lawsuit shall also contain a notice that if the appeals board makes an award against the defendant that his or her house or other dwelling and other property may be taken to satisfy the award in a nonjudicial sale, with no exemptions from execution. The special notice of lawsuit shall, in addition, contain a notice that a lien may be imposed upon the defendant’s property without further hearing and before the issuance of an award. The applicant shall identify a legal person or entity as the employer named in the special notice of lawsuit. The reasonable expense of serving the application and special notice of lawsuit, when incurred by the employee, shall be awarded as a cost. Proof of service of the special notice of lawsuit and application shall be filed with the appeals board. (1) The application and special notice of lawsuit may be served, within or without this state, in the manner provided for service of summons in the Code of Civil Procedure. Thereafter, an employer, alleged to be illegally uninsured, shall notify the appeals board of the address at which it may be served with official notices and papers, and shall notify the appeals board of any changes in the address. No findings, order, decision, award, or other notice or paper need be served in this manner on an employer, alleged to be illegally uninsured, who has been served as provided in this section, and who has not filed an answer, otherwise made a general appearance, or furnished the appeals board with its address. The findings, orders, decisions, awards, or other notice or paper may be mailed to the employer as the board, by regulation, may provide. (2) Notwithstanding paragraph (1), if the employer alleged to be illegally uninsured has not filed an answer, otherwise made a general appearance, or furnished the appeals board with its address, the appeals board shall serve any findings, order, decision, award, or other notice or paper on the employer by mail at the address the appeals board has for the employer. The failure of delivery at that address or the lack of personal service on an employer who has been served as provided in this section, of these findings, order, decision, award, or other notice or paper, shall not constitute grounds for reopening or invalidating any appeals board action pursuant to Section 5506, or for contesting the validity of any judgment obtained under Section 3716 or 5806, a lien under Section 3720, or a settlement under subdivision (e) of Section 3715. (3) The board, by regulation, may provide for service procedures in cases where a request for new and further benefits is made after the issuance of any findings and award and a substantial period of time has passed since the first service or attempted service. (4) The director, on behalf of the Uninsured Employers Benefits Trust Fund, shall furnish information as to the identities, legal capacities, and addresses of uninsured employers known to the director upon request of the board or upon a showing of good cause by the employee or the employee’s representative. Good cause shall include a declaration by the employee’s representative, filed under penalty of perjury, that the information is necessary to represent the employee in proceedings under this division. (Amended by Stats. 2003, Ch. 228, Sec. 28. Effective August 11, 2003.)
  92. 3716.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The Attorney General or Department of Industrial Relations attorneys must represent the director and the state in hearings, investigations, or proceedings, and the director must assign certain investigative and claims-adjustment services for uninsured employers injury cases.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3716.1. (a) In any hearing, investigation, or proceeding, the Attorney General, or attorneys of the Department of Industrial Relations, shall represent the director and the state. Expenses incident to representation of the director and the state, before the appeals board and in civil court, by the Attorney General or Department of Industrial Relations attorneys, shall be reimbursed from the Workers’ Compensation Administration Revolving Fund. Expenses incident to representation by the Attorney General or attorneys of the Department of Industrial Relations incurred in attempts to recover moneys pursuant to Section 3717 of the Labor Code shall not exceed the total amounts recovered by the director on behalf of the Uninsured Employers Benefits Trust Fund pursuant to this chapter. (b) The director shall assign investigative and claims’ adjustment services respecting matters concerning uninsured employers injury cases. The director or his or her representative may make these service assignments within the department, or he or she may contract for these services with the State Compensation Insurance Fund, except insofar as these matters might conflict with the interests of the State Compensation Insurance Fund. The administrative costs associated with these services shall be reimbursed from the Workers’ Compensation Administration Revolving Fund and the nonadministrative costs from the Uninsured Employers Benefits Trust Fund, except when a budget impasse requires advances as described in subdivision (c) of Section 62.5. To the extent permitted by state law, the director may contract for audits or reports of services under this section. (Amended by Stats. 2012, Ch. 728, Sec. 120. (SB 71) Effective January 1, 2013.)
  93. 3716.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director, as administrator of the Uninsured Employers Fund, must pay only allowed benefits, and the Fund is not liable for penalties or interest on awards.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3716.2. Notwithstanding the precise elements of an award of compensation benefits, and notwithstanding the claim and demand for payment being made therefor to the director, the director, as administrator of the Uninsured Employers Fund, shall pay the claimant only such benefits allowed, recognizing proper liens thereon, that would have accrued against an employer properly insured for workers’ compensation liability. The Uninsured Employers Fund shall not be liable for any penalties or for the payment of interest on any awards. However, in civil suits by the director to enforce payment of an award, including procedures pursuant to Section 3717, the total amount of the award, including interest, other penalties, and attorney’s fees granted by the award, shall be sought. Recovery by the director, in a civil suit or by other means, of awarded benefits in excess of amounts paid to the claimant by the Uninsured Employers Fund shall be paid over to the injured employee or his representative, as the case may be. (Amended by Stats. 1999, Ch. 83, Sec. 133. Effective January 1, 2000.)
  94. 3716.3.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director may enforce a judgment against an uninsured employer by nonjudicial foreclosure, and the trustee may sell the real property after 20 days; a narrow exemption applies to an employer’s principal residence if the employer had 10 or fewer employees on the injury date.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3716.3. (a) Notwithstanding any other provision of law to the contrary, when the director obtains a judgment against an uninsured employer, the director may, in addition to any other remedies provided by law, enforce the judgment by nonjudicial foreclosure. This enforcement shall not be subject to Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure relating to claiming exemptions after levy. (b) To enforce the judgment by nonjudicial foreclosure, the director shall record with the county recorder of any county in which real property of the parties against whom the judgment is taken is located, a certified copy of the judgment together with the director’s notice of intent to foreclose. The notice of intent to foreclose shall set forth all of the following: (1) The name, address, and telephone number of the trustee authorized by the director to enforce the lien by sale. (2) The legal description of the real property to be foreclosed upon. (3) Proof of service by registered or certified mail on the following: (A) The parties against whom the foreclosure is sought at their last known address as shown on the official records of the appeals board and as shown on the latest recorded deed, deed of trust, or mortgage affecting the real property which is the subject of the foreclosure. (B) All of the owners of the real property which is subject to the foreclosure at their last address as shown on the latest equalized assessment roll. (c) Upon the expiration of 20 days following recording of the judgment and notice of intent to foreclose, the trustee may proceed to sell the real property. Any sale by the trustee shall be conducted in accordance with Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3 of the Civil Code applicable to the exercise of powers of sale of property under powers created by mortgages and deeds of trust. (d) The director may authorize any person, including an attorney, corporation, or other business entity, to act as trustee pursuant to subdivision (b). (e) Except as provided in subdivision (f), this section shall apply to all judgments which the director has obtained or may obtain pursuant to Section 3717, 3726, or 5806. (f) This section shall not apply to the principal residence of an employer if the appeals board finds that the employer, on the date of injury, employed 10 or fewer employees. An employer seeking this exemption shall provide proof of payment of tax withholding required pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, to assist in determining the number of employees on the date of injury. (Added by Stats. 1990, Ch. 770, Sec. 2. Applicable retroactively as prescribed by Sec. 4 of Ch. 770.)
  95. 3716.4.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    If certain carriers get a final judgment from an award under Section 3716.2, the director may send the judgment and related names and addresses to the relevant regulator and ask it to revoke the carrier’s permit or certificate.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3716.4. Whenever a final judgment has been entered against a motor carrier of property subject to the jurisdiction and control of the Department of Motor Vehicles or a passenger stage corporation, charter-party carrier of passengers, or a household goods carrier subject to the jurisdiction and control of the Public Utilities Commission as a result of an award having been made pursuant to Section 3716.2, the director may transmit to the Public Utilities Commission or the Department of Motor Vehicles, whichever has jurisdiction over the affected carrier, a copy of the judgment along with the name and address of the regulated entity and any other persons, corporations, or entities named in the judgment which are jointly and severally liable for the debt to the State Treasury with a complaint requesting that the Public Utilities Commission or the Department of Motor Vehicles immediately revoke the carrier’s Public Utilities Commission certificate of public convenience and necessity or Department of Motor Vehicles motor carrier permit. (Amended by Stats. 1996, Ch. 1042, Sec. 2.5. Effective September 29, 1996.)
  96. 3716.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director must designate employee job classifications and report related data to the Legislature.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3716.5. In the payment of workers’ compensation benefits from the Uninsured Employers Fund, the director shall do the following: (a) Designate the job classifications of employees who are paid compensation from the fund. (b) Compile data on the job classifications of employees paid compensation from the fund and report this data to the Legislature by November 1, 1990, and annually thereafter. (Added by Stats. 1989, Ch. 827, Sec. 1.)
  97. 3717.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director may sue an employer or seek judgment to collect a final award, and the appeals board must certify the claim to the director.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3717. (a) A findings and award that is the subject of a demand on the Uninsured Employers Fund or an approved compromise and release or stipulated findings and award entered into by the director pursuant to subdivision (e) of Section 3715, or a decision and order of the rehabilitation unit of the Division of Workers’ Compensation, that has become final, shall constitute a liquidated claim for damages against an employer in the amount so ascertained and fixed by the appeals board, and the appeals board shall certify the same to the director who may institute a civil action against the employer in the name of the director, as administrator of the Uninsured Employers Fund, for the collection of the award, or may obtain a judgment against the employer pursuant to Section 5806. In the event that the appeals board finds that a corporation is the employer of an injured employee, and that the corporation has not secured the payment of compensation as required by this chapter, the following persons shall be jointly and severally liable with the corporation to the director in the action: (1) All persons who are a parent, as defined in Section 175 of the Corporations Code, of the corporation. (2) All persons who are substantial shareholders, as defined in subdivision (b), of the corporation or its parent. In the action it shall be sufficient for plaintiff to set forth a copy of the findings and award of the appeals board relative to the claims as certified by the appeals board to the director and to state that there is due to plaintiff on account of the finding and award of the appeals board a specified sum which plaintiff claims with interest. The director shall be further entitled to costs and reasonable attorney fees, and to his or her investigation and litigation expenses for the appeals board proceedings, and a reasonable attorney fee for litigating the appeals board proceedings. A certified copy of the findings and award in the claim shall be attached to the complaint. The contents of the findings and award shall be deemed proved. The answer or demurrer to the complaint shall be filed within 10 days, the reply or demurrer to the answer within 20 days, and the demurrer to the reply within 30 days after the return day of the summons or service by publication. All motions and demurrers shall be submitted to the court within 10 days after they are filed. At the time the civil action filed pursuant to this section is at issue, it shall be placed at the head of the trial docket and shall be first in order for trial. Nothing in this chapter shall be construed to preclude informal adjustment by the director of a claim for compensation benefits before the issuance of findings and award wherever it appears to the director that the employer is uninsured and that informal adjustment will facilitate the expeditious delivery of compensation benefits to the injured employee. (b) As used in this section, “substantial shareholder” means a shareholder who owns at least 15 percent of the total value of all classes of stock, or, if no stock has been issued, who owns at least 15 percent of the beneficial interests in the corporation. (c) For purposes of this section, in determining the ownership of stock or beneficial interest in the corporation, in the determination of whether a person is a substantial shareholder of the corporation, the rules of attribution of ownership of Section 17384 of the Revenue and Taxation Code shall be applied. (d) For purposes of this section, “corporation” shall not include: (1) Any corporation which is the issuer of any security which is exempted by Section 25101 of the Corporations Code from Section 25130 of the Corporations Code. (2) Any corporation which is the issuer of any security exempted by subdivision (c), (d), or (i) of Section 25100 of the Corporations Code from Sections 25110, 25120, and 25130 of the Corporations Code. (3) Any corporation which is the issuer of any security which has qualified either by coordination, as provided by Section 25111 of the Corporations Code, or by notification, as provided by Section 25112 of the Corporations Code. (Amended by Stats. 1994, Ch. 146, Sec. 148. Effective January 1, 1995.)
  98. 3717.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    If an uninsured employer is a corporation, the director may add substantial shareholders and parents as parties. Shareholders may be served directly, and if they cannot be found with reasonable diligence, service may be made on the corporation. The corporation must then notify the shareholder and mail the served document to the shareholder’s last known address.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3717.1. In any claim in which an alleged uninsured employer is a corporation, the director may cause substantial shareholders and parents, as defined by Section 3717, to be joined as parties. Substantial shareholders may be served as provided in this division for service on adverse parties, or if they cannot be found with reasonable diligence, by serving the corporation. The corporation, upon this service, shall notify the shareholder of the service, and mail the served document to him or her at the shareholder’s last address known to the corporation. (Added by Stats. 1985, Ch. 1547, Sec. 3.)
  99. 3717.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    If the director asks, the appeals board must determine whether persons are substantial shareholders or parents. The director may still proceed against them under Section 3717 even without those findings.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3717.2. Upon request of the director, the appeals board shall make findings of whether persons are substantial shareholders or parents, as defined in Section 3717. The director may in his or her discretion proceed against substantial shareholders and parents pursuant to Section 3717 without those findings of the appeals board. (Added by Stats. 1985, Ch. 1547, Sec. 4.)
  100. 3718.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    Related causes of action may be joined in one lawsuit against an employer, and any recovery must be paid into the State Treasury for the Uninsured Employers Fund.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3718. The cause of action provided in Section 3717 and any cause of action arising out of Section 3722 may be joined in one action against an employer. The amount recovered in such action from such employer shall be paid into the State Treasury to the credit of the Uninsured Employers Fund. (Amended by Stats. 1976, Ch. 1036.)
  101. 3719.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director may compromise certain claims against an employer under Section 3717, or choose to prosecute them to final judgment if that best serves the Uninsured Employers Fund.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3719. Any suit, action, proceeding, or award brought or made against any employer under Section 3717 may be compromised by the director, or such suit, action, or proceeding may be prosecuted to final judgment as in the discretion of the director may best subserve the interests of the Uninsured Employers Fund. (Amended by Stats. 1980, Ch. 852.)
  102. 3720.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director may record a lien against an uninsured employer’s property, and must serve the employer with a copy of the certificate.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3720. (a) When the appeals board or the director determines under Section 3715 or 3716 that an employer has not secured the payment of compensation as required by this division or when the director has determined that the employer is prima facie illegally uninsured, the director may file for record in the office of the county recorder in the counties where the employer’s property is possibly located, a certificate of lien showing the date that the employer was determined to be illegally uninsured or the date that the director has determined that the employer was prima facie illegally uninsured. The certificate shall show the name and address of the employer against whom it was filed, and the fact that the employer has not secured the payment of compensation as required by this division. Upon the recordation, the certificate shall constitute a valid lien in favor of the director, and shall have the same force, effect and priority as a judgment lien and shall continue for 10 years from the time of the recording of the certificate unless sooner released or otherwise discharged. A copy of the certificate shall be served upon the employer by mail, by the director. A facsimile signature of the director accompanied by the seal imprint of the department shall be sufficient for recording purposes of liens and releases or cancellations thereof considered herein. Certificates of liens may be filed in any or all counties of the state, depending upon the information the director obtains concerning the employer’s assets. (b) For purposes of this section, in the event the employer is a corporation, those persons whom either the appeals board finds are the parent or the substantial shareholders of the corporation or its parent, or whom the director finds pursuant to Section 3720.1 to be prima facie the parent or the substantial shareholders of the corporation or its parent, as defined in Section 3717, shall be deemed to be the employer, and the director may file the certificates against those persons. (c) A person who claims to be aggrieved by the filing of a lien against the property of an uninsured employer because he or she has the same or a similar name, may apply to the director to have filed an amended certificate of lien which shows that the aggrieved applicant is not the uninsured employer which is the subject of the lien. If the director finds that the aggrieved applicant is not the same as the uninsured employer, the director shall file an amended certificate of lien with the county recorder of the county in which the aggrieved applicant has property, which shall show, by reasonably identifying information furnished by the aggrieved applicant, that the uninsured employer and the aggrieved applicant are not the same. If the director does not file the amended certificate of lien within 60 days of application therefor, the applicant may appeal the director’s failure to so find by filing a petition with the appeals board, which shall make a finding as to whether the applicant and the uninsured employer are the same. (d) Liens filed under this section have continued existence independent of, and may be foreclosed upon independently of, any right of action arising out of Section 3717 or 5806. (Amended by Stats. 1992, Ch. 1226, Sec. 2. Effective January 1, 1993.)
  103. 3720.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    This section lets the director decide whether a person is a prima facie parent or substantial shareholder in a corporation claim and sets out hearing and review procedures.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3720.1. (a) In any claim in which the alleged uninsured employer is a corporation, for purposes of filing certificates of lien pursuant to Section 3720, the director may determine, according to the evidence available to him or her, whether a person is prima facie a parent or substantial shareholder, as defined in Section 3717. A finding that a person was prima facie a parent or substantial shareholder shall be made when the director determines that there is sufficient evidence to constitute a prima facie case that the person was a parent or substantial shareholder. (b) Any person aggrieved by a finding of the director that he or she was prima facie a parent or substantial shareholder may request a hearing on the finding by filing a written request for hearing with the director. The director shall hold a hearing on the matter within 20 days of the receipt of the request for hearing, and shall mail a notice of time and place of hearing to the person requesting hearing at least 10 days prior to the hearing. The hearing officer shall hear and receive evidence, and within 10 days of the hearing, file his or her findings on whether there is sufficient evidence to constitute a prima facie case that the person was a substantial shareholder or parent. The hearing officer shall serve with his or her findings a summary of evidence received and relied upon, and the reasons for the findings. A party may at his or her own expense require that the hearing proceedings be recorded and transcribed. (c) A party aggrieved by the findings of the hearing officer may within 20 days apply for a writ of mandate to the superior court. Venue shall lie in the county in which is located the office of the director which issued the findings after the hearing. (Added by Stats. 1985, Ch. 1547, Sec. 6.)
  104. 3720.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director may treat certain post-injury real-property transfers by an uninsured employer or substantial shareholder as creating a resulting trust, and must follow notice-and-hearing steps.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3720.2. (a) In a claim in which the uninsured employer or a substantial shareholder, as determined pursuant to this article, has caused to be recorded in a county a vesting deed conveying an ownership interest in real property after the date of the employee’s injury and prior to the recording of a certificate of lien in the county by the director pursuant to Section 3720, and provided that such property has not subsequently been transferred to a bona fide purchaser, the director may determine according to the evidence available to the director whether the transferor of such real property intended to retain a beneficial interest in the real property, such that a resulting trust for the benefit of the uninsured employer or substantial shareholder was created. A prima facie finding that the transaction created a resulting trust for the benefit of the uninsured employer or substantial shareholder may be made when the director determines that there is sufficient evidence to show either of the following circumstances are present: (1) The recorded vesting deed indicates thereon that the transfer was made as a gift or that no transfer tax to the county was paid. (2) The transferor made the transfer with actual intent to hinder, delay, or defraud collection of reimbursement for funds paid by the Uninsured Employers Benefits Trust Fund to or on behalf of an injured worker. A finding made pursuant to this paragraph may be made when at least three or more of the following circumstances are present: (A) The transfer was to a personal or business associate or a relative by blood, affinity, or marriage of the transferor. (B) The transferor maintains the real property as a place of residence or business after the transfer. (C) The transferring parties did not employ an escrow or title company to close the transaction transferring the real property. (D) The value of the consideration received by the transferor was not reasonably equivalent to the value of the real property transferred. (E) The transferor failed to attend scheduled hearings and trials of the appeals board after the transfer. (F) The transferor owns legal title to no other real property in the county. (b) When the director determines pursuant to subdivision (a) that a transfer of real property by the uninsured employer or a substantial shareholder created a resulting trust for the benefit of such transferor, a certificate of lien recorded by the director pursuant to Section 3720 shall attach to that resulting trust in the property and shall constitute a valid lien against the property in favor of the director in the same manner as if the transfer had not occurred. (c) When the director determines pursuant to subdivision (a) that a transfer created a resulting trust for benefit of the transferor, the director shall mail written notices of the prima facie determination of said resulting trust to the transferor and transferee at their addresses as shown on the recorded vesting deed, the official address record of the appeals board, and to any other more recent addresses the director may have. The notice shall advise the transferring parties of their right to appeal the finding, and that a lien may record and attach against the subject real property stating therein that, “THE DIRECTOR HAS MADE A PRIMA FACIE DETERMINATION PURSUANT TO LABOR CODE SECTION 3720.2 THAT THE TRANSFEREE, [FIRST AND LAST NAME], HOLDS TITLE TO THE REAL PROPERTY AT [STREET ADDRESS, CITY AND PARCEL NUMBERS] ON BEHALF OF THE TRANSFEROR, [FIRST AND LAST NAME], IN A RESULTING TRUST” in bold and uppercase letters on the certificate of lien. (d) A person aggrieved by a prima facie finding of the director pursuant to subdivision (a) that the transferor of the property intended to retain a beneficial interest, such that a resulting trust was created, may request a hearing on the finding by filing a written request for hearing with the director. The director, through a hearing officer appointed by the director, shall hold a hearing on the matter within 20 days of the receipt of the request for hearing and shall mail a notice of time and place of hearing to the person requesting the hearing at least 10 days prior to the hearing. The hearing officer shall hear and receive evidence, and within 10 days of the hearing, file findings on whether there is sufficient evidence to constitute a prima facie case that the transfer of real property is subject to a resulting trust. The hearing officer shall serve with the findings a summary of evidence received and relied upon and the reasons for the findings. A party may at their own expense require that the hearing proceedings be recorded and transcribed. (e) A party aggrieved by the findings of the hearing officer may within 20 days apply for a writ of mandate to the superior court. The venue shall lie in the county in which the real property is located. (f) This section does not affect the interests, priorities, and ownership rights of bona fide encumbrancers and purchasers. (Added by Stats. 2025, Ch. 790, Sec. 1. (SB 847) Effective January 1, 2026.)
  105. 3721.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    The director must give the employer a certificate of cancellation of lien when one of several listed conditions is met. The recorder may not charge a fee for filing certain lien documents, and the employer may file cancellation certificates for recordation at the employer’s expense.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3721. The director shall provide the employer with a certificate of cancellation of lien after the employer has paid to the claimant or to the Uninsured Employers Fund the amount of the compensation or benefits which has been ordered paid to the claimant, or when the application has finally been denied after the claimant has exhausted the remedies provided by law in those cases, or when the employer has filed a bond in the amount and with such surety as the appeals board approves conditioned on the payment of all sums ordered paid to the claimant, or when, after a finding that the employer was prima facie illegally uninsured, it is finally determined that the finding was in error. The recorder shall make no charge for filing the certificates of lien, for filing amended certificates of lien, or for cancellation when liens are filed in error. Cancellation of lien certificates provided to the employer may be filed for recordation by the employer at his or her expense. (Amended by Stats. 1985, Ch. 1547, Sec. 7.)
  106. 3722.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    This section requires the director to assess penalties against uninsured employers and requires the employer to submit employee information when asked.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3722. (a) At the time the stop order is issued and served pursuant to Section 3710.1, the director shall also issue and serve a penalty assessment order requiring the uninsured employer to pay to the director, for deposit in the State Treasury to the credit of the Uninsured Employers Fund, the sum of one thousand five hundred dollars ($1,500) per employee employed at the time the order is issued and served, as an additional penalty for being uninsured at that time or issue and serve a penalty assessment order pursuant to subdivision (b). (b) At any time that the director determines that an employer has been uninsured for a period in excess of one week during the calendar year preceding the determination, the director shall issue and serve a penalty assessment order requiring the uninsured employer to pay to the director, for deposit in the State Treasury to the credit of the Uninsured Employers Fund, the greater of (1) twice the amount the employer would have paid in workers’ compensation premiums during the period the employer was uninsured, determined according to subdivision (c), or (2) the sum of one thousand five hundred dollars ($1,500) per employee employed during the period the employer was uninsured. A penalty assessment issued and served by the director pursuant to this subdivision shall be in lieu of, and not in addition to, any other penalty issued and served by the director pursuant to subdivision (a). (c) If the employer is currently insured, or becomes insured during the period during which the penalty under subdivision (b) is being determined, the amount an employer would have paid in workers’ compensation premiums shall be calculated by prorating the current premium for the number of weeks the employer was uninsured within the three-year period immediately prior to the date the penalty assessment is issued. If the employer is uninsured at the time the penalty under subdivision (b) is being determined, the amount an employer would have paid in workers’ compensation premiums shall be the product of the employer’s payroll for all periods of time the employer was uninsured within the three-year period immediately prior to the date the penalty assessment is issued multiplied by a rate determined in accordance with regulations that may be adopted by the director or, if none has been adopted, the manual rate or rates of the State Compensation Insurance Fund for the employer’s governing classification pursuant to the standard classification system approved by the Insurance Commissioner. The classification shall be determined by the director or the director’s designee at the time the penalty assessment is issued on the basis of any information available to the director regarding the employer’s operations. Unless the amount of the employer’s payroll for all periods during which the employer was uninsured within the three-year period is otherwise proven by a preponderance of evidence, the employer’s payroll for each week the employer was uninsured shall be presumed to be the state average weekly wage multiplied by the number of persons employed by the employer at the time the penalty assessment is issued. For purposes of this subdivision, “state average weekly wage” means the average weekly wage paid by employers to employees covered by unemployment insurance as reported by the United States Department of Labor for California for the 12-month period ending March 31 of the calendar year preceding the year in which the penalty assessment order is issued. (d) If upon the filing of a claim for compensation under this division the Workers’ Compensation Appeals Board finds that any employer has not secured the payment of compensation as required by this division and finds the claim either noncompensable or compensable, the appeals board shall mail a copy of their findings to the uninsured employer and the director, together with a direction to the uninsured employer to file a verified statement pursuant to subdivision (e). After the time for any appeal has expired and the adjudication of the claim has become final, the uninsured employer shall be assessed and pay as a penalty either of the following: (1) In noncompensable cases, two thousand dollars ($2,000) per each employee employed at the time of the claimed injury. (2) In compensable cases, ten thousand dollars ($10,000) per each employee employed on the date of the injury. (e) In order to establish the number of employees the uninsured employer had on the date of the claimed injury in noncompensable cases and on the date of injury in compensable cases, the employer shall submit to the director within 10 days after service of findings, awards, and orders of the Workers’ Compensation Appeals Board a verified statement of the number of employees in his or her employ on the date of injury. If the employer fails to submit to the director this verified statement or if the director disputes the accuracy of the number of employees reported by the employer, the director shall use any information regarding the number of employees as the director may have or otherwise obtains. (f) Except for penalties assessed under subdivision (b), the maximum amount of penalties which may be assessed pursuant to this section is one hundred thousand dollars ($100,000). Payment shall be transmitted to the director for deposit in the State Treasury to the credit of the Uninsured Employers Fund. (g) (1) The Workers’ Compensation Appeals Board may provide for a summary hearing on the sole issue of compensation coverage to effect the provisions of this section. (2) In the event a claim is settled by the director pursuant to subdivision (e) of Section 3715 by means of a compromise and release or stipulations with request for award, the appeals board may also provide for a summary hearing on the issue of compensability. (Amended by Stats. 2009, Ch. 640, Sec. 1. (SB 313) Effective January 1, 2011. Note: Because Ch. 640 was chaptered on November 2, 2009, its effective date is January 1, 2011, not January 1, 2010.)
  107. 3725.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    An employer contesting a penalty assessment order must request a hearing from the director within 15 days; the director must then set and notify the hearing, issue findings, and the assessed party may seek a writ of mandate under stated conditions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3725. If an employer desires to contest a penalty assessment order, the employer shall file with the director a written request for a hearing within 15 days after service of the order. Upon receipt of the request, the director shall set the matter for a hearing within 30 days thereafter and shall notify the employer of the time and place of the hearing by mail at least 10 days prior to the date of the hearing. The decision of the director shall consist of a notice of findings and findings which shall be served on all parties to the hearing by registered or certified mail within 15 days after the hearing. Any amount found due by the director as a result of a hearing shall become due and payable 45 days after notice of the findings and written findings have been mailed by registered or certified mail to the party assessed. A writ of mandate may be taken from these findings to the appropriate superior court upon the execution by the party assessed of a bond to the state in double the amount found due and ordered paid by the director, as long as the party agrees to pay any judgment and costs rendered against the party for the assessment. The writ shall be taken within 45 days after mailing the notice of findings and findings. (Amended by Stats. 1988, Ch. 96, Sec. 13.)
  108. 3726.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    This section lets the director file certified copies of certain penalty assessment orders in superior court, and requires the clerk to enter judgment for the state. The clerk also may file the judgment in a special book and may not charge for these services.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3726. (a) When no petition objecting to a penalty assessment order is filed, a certified copy of the order may be filed by the director in the office of the clerk of the superior court in any county in which the employer has property or in which the employer has or had a place of business. The clerk, immediately upon such filing, shall enter judgment for the state against the employer in the amount shown on the penalty assessment order. (b) When findings are made affirming or modifying a penalty assessment order after hearing, a certified copy of such order and a certified copy of such findings may be filed by the director in the office of the clerk of the superior court in any county in which the employer has property or in which the employer has or had a place of business. The clerk, immediately upon such filing, shall enter judgment for the state against the employer in the amount shown on the penalty assessment order or in the amount shown in the findings if the order has been modified. (c) A judgment entered pursuant to the provisions of this section may be filed by the clerk in a looseleaf book entitled “Special Judgments for State Uninsured Employers Fund.” Such judgment shall bear the same rate of interest and shall have the same effect as other judgments and be given the same preference allowed by law on other judgments rendered for claims for taxes. The clerk shall make no charge for the service provided by this section to be performed by him. (Amended by Stats. 1980, Ch. 852.)
  109. 3727.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    If the director finds an employer failed to secure compensation, the director may file a certificate with county recorder, creating a lien; the recorder must accept, file, record, index it, and charge no fee, and the director must issue a cancellation certificate after the penalty is paid.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3727. If the director determines pursuant to Section 3722 that an employer has failed to secure the payment of compensation as required by this division, the director may file with the county recorder of any counties in which such employer’s property may be located his certificate of the amount of penalty due from such employer and such amount shall be a lien in favor of the director from the date of such filing against the real property and personal property of the employer within the county in which such certificate is filed. The recorder shall accept and file such certificate and record the same as a mortgage on real estate and shall file the same as a security interest and he shall index the same as mortgage on real estate and as a security interest. Certificates of liens may be filed in any and all counties of the state, depending upon the information the director obtains concerning the employer’s assets. The recorder shall make no charge for the services provided by this section to be performed by him. Upon payment of the penalty assessment, the director shall issue a certificate of cancellation of penalty assessment, which may be recorded by the employer at his expense. (Amended by Stats. 1980, Ch. 852.)
  110. 3727.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    The director may withdraw certain stop orders or penalty assessment orders if investigation shows the employer had workers’ compensation coverage or had secured payment of compensation when required.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3727.1. The director may withdraw a stop order or a penalty assessment order where investigation reveals the employer had secured the payment of compensation as required by Section 3700 on the date and at the time of service of such order. The director also may withdraw a penalty assessment order where investigation discloses that the employer was insured on the date and at the time of an injury or claimed injury, or where an insured employer responded in writing to a request to furnish the status of his workers’ compensation coverage within the time prescribed. (Added by Stats. 1980, Ch. 852.)
  111. 3728.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    The director may draw a limited revolving fund from the State Treasury for certain purposes, and related warrants and reimbursements must follow the stated controller and treasury procedures.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3728. (a) The director may draw from the State Treasury out of the Uninsured Employers Benefits Trust Fund for the purposes of Sections 3716 and 3716.1, without at the time presenting vouchers and itemized statements, a sum not to exceed in the aggregate the level provided for pursuant to Section 16400 of the Government Code, to be used as a cash revolving fund. The revolving fund shall be deposited in any banks and under any conditions as the Department of General Services determines. The Controller shall draw his or her warrants in favor of the Director of Industrial Relations for the amounts so withdrawn and the Treasurer shall pay these warrants. (b) Expenditures made from the revolving fund in payment of claims for compensation due from the Uninsured Employers Benefits Trust Fund and from the Workers’ Compensation Administration Revolving Fund for administrative and adjusting services rendered are exempted from the operation of Section 925.6 of the Government Code. Reimbursement of the revolving fund from the Uninsured Employers Benefits Trust Fund or the Workers’ Compensation Administration Revolving Fund for expenditures shall be made upon presentation to the Controller of an abstract or statement of the expenditures. The abstract or statement shall be in any form as the Controller requires. (Amended by Stats. 2003, Ch. 228, Sec. 30. Effective August 11, 2003.)
  112. 3730.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    If a filing deadline falls on a Saturday, Sunday, or holiday, the filing may be done on the next business day.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3730. When the last day for filing any instrument or other document pursuant to this chapter falls upon a Saturday, Sunday or other holiday, such act may be performed upon the next business day with the same effect as if it had been performed upon the day appointed. (Added by Stats. 1980, Ch. 852.)
  113. 3731.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

    Verify source ↗

    Stop orders and penalty assessment orders may be personally served on the employer in the ways listed in this section.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3731. Any stop order or penalty assessment order may be personally served upon the employer either by (1) manual delivery of the order to the employer personally or by (2) leaving signed copies of the order during usual office hours with the person who is apparently in charge of the office and by thereafter mailing copies of the order by first class mail, postage prepaid to the employer at the place where signed copies of the order were left. (Added by Stats. 1980, Ch. 852.)
  114. 3732.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    If the Uninsured Employers Fund pays compensation, the director may seek recovery from responsible third parties, and related actions generally must be filed within one year. The section also gives the director lien and execution rights and requires notice before a judgment or settlement is satisfied.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3732. (a) If compensation is paid or becomes payable from the Uninsured Employers Fund, whether as a result of a findings and award, award based upon stipulations, compromise and release executed on behalf of the director, or payments voluntarily furnished by the director pursuant to Section 4903.3, the director may recover damages from any person or entity, other than the employer, whose tortious act or omission proximately caused the injury or death of the employee. The damages shall include any compensation, including additional compensation by way of interest or penalty, paid or payable by the director, plus the expense incurred by the director in investigating and litigating the workers’ compensation claim and a reasonable attorney fee for litigating the workers’ compensation claim. The director may compromise, or settle and release any claim, and may waive any claim, including the lien allowed by this section, in whole or in part, for the convenience of the director. (b) Except as otherwise provided in this section, Chapter 5 (commencing with Section 3850) of Part 1 of Division 4 shall be applicable to these actions, the director being treated as an employer within the meaning of Chapter 5 to the extent not inconsistent with this section. (c) Actions brought under this section shall be commenced within one year after the later of either the time the director pays or the time the director becomes obligated to pay any compensation from the Uninsured Employers Fund. (d) In the trial of these actions, any negligence attributable to the employer shall not be imputed to the director or to the Uninsured Employers Fund, and the damages recoverable by the director shall not be reduced by any percentage of fault or negligence attributable to the employer or to the employee. (e) In determining the credit to the Uninsured Employers Fund provided by Section 3861, the appeals board shall not take into consideration any negligence of the employer, but shall allow a credit for the entire amount of the employee’s recovery either by settlement or after judgment, as has not theretofore been applied to the payment of expenses or attorney’s fees. (f) When an action or claim is brought by an employee, his or her guardian, conservator, personal representative, estate, survivors, or heirs against a third party who may be liable for causing the injury or death of the employee, any settlement or judgment obtained is subject to the director’s claim for damages recoverable by the director pursuant to subdivision (a), and the director shall have a lien against any settlement in the amount of the damages. (g) No judgment or settlement in any action or claim by an employee, his or her guardian, conservator, personal representative, survivors, or heirs to recover damages for injuries, where the director has an interest, shall be satisfied without first giving the director notice and a reasonable opportunity to perfect and satisfy his or her lien. The director shall be mailed a copy of the complaint in the third-party action as soon as reasonable after it is filed with the court. (h) When the director has perfected a lien upon a judgment or settlement in favor of an employee, his or her guardian, conservator, personal representative, survivors or heirs against any third party, the director shall be entitled to a writ of execution as a lien claimant to enforce payment of the lien against the third party with interest and other accruing costs as in the case of other executions. In the event the amount of the judgment or settlement so recovered has been paid to the employee, his or her guardian, conservator, personal representative, survivors, or heirs, the director shall be entitled to a writ of execution against the employee, his or her guardian, conservator, personal representative, survivors, or heirs to the extent of the director’s lien, with interest and other accruing costs as in the cost of other executions. (i) Except as otherwise provided in this section, notwithstanding any other provision of law, the entire amount of any settlement of the action or claim of the employee, his or her guardian, conservator, personal representative, survivors, or heirs, with or without suit, is subject to the director’s lien claim for the damages recoverable by the director pursuant to subdivision (a). (j) Where the action or claim is brought by the employee, his or her guardian, conservator, personal representative, estate, survivors, or heirs, and the director has not joined in the action, and the employee, his or her guardian, conservator, personal representative, estate, survivors, or heirs incur a personal liability to pay attorney’s fees and costs of litigation, the director’s claim for damages shall be limited to the amount of the director’s claim for damages less that portion of the costs of litigation expenses determined by multiplying the total cost of litigation expenses by the ratio of the full amount of the director’s claim for damages to the full amount of the judgment, award, or settlement, and less 25 percent of the balance after subtracting the director’s share of litigation expenses, which represents the director’s reasonable share of attorney’s fees incurred. (k) In the trial of the director’s action for damages, and in the allowance of his or her lien in an action by the employee, guardian, executor, personal representative, survivors, or heirs, the compensation paid from the Uninsured Employers Fund pursuant to an award as provided in Section 3716 is conclusively presumed to be reasonable in amount and to be proximately caused by the event or events which caused the employee’s injury or death. (l) In the action for damages the director shall be entitled to recover, if he or she prevails, the entire amount of the damages recoverable by the director pursuant to subdivision (a), regardless of whether the damages recoverable by the employee, guardian, conservator, personal representative, survivors, or heirs are of lesser amount. (Amended by Stats. 1989, Ch. 461, Sec. 3.)
  115. 3733.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. )

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    A person cannot be denied compensation from the Uninsured Employers Benefits Trust Fund just because of citizenship or immigration status.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Uninsured Employers Fund [3710 - 3733] ( Heading of Article 2 added by Stats. 1980, Ch. 852. ) ## 3733. (a) The Legislature finds and declares that it is in the best interest of the State of California to provide a person, regardless of his or her citizenship or immigration status, with the benefits provided pursuant to this article, and therefore enacts this section pursuant to Section 1621(d) of Title 8 of the United States Code. (b) A person shall not be prohibited from receiving compensation paid or payable from the Uninsured Employers Benefits Trust Fund solely because of his or her citizenship or immigration status. (c) It is the intent of the Legislature to override Section 15740 of Article 1 of Subchapter 2.1.1 of Chapter 8 of Division 1 of Title 8 of the California Code of Regulations. (d) The provisions of this section are declaratory of existing law. (Added by Stats. 2015, Ch. 290, Sec. 1. (SB 623) Effective January 1, 2016.)
  116. 3740.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

    Verify source ↗

    This section states the Legislature’s intent to keep workers’ compensation benefits flowing when a private self-insured employer cannot pay and its security deposit is inadequate or unavailable, and to clarify existing law about surety liability.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3740. It is the intent of the Legislature in enacting this article and Article 1 (commencing with Section 3700) to provide for the continuation of workers’ compensation benefits delayed due to the failure of a private self-insured employer to meet its compensation obligations when the employers’ security deposit is either inadequate or not immediately accessible for the payment of benefits. With respect to the continued liability of a surety for claims that arose under a bond after termination of that bond and to a surety’s liability for the cost of administration of claims, it is the intent of the Legislature to clarify existing law. The Legislature finds and declares that the establishment of the Self-Insurers’ Security Fund is a necessary component of a complete system of workers’ compensation, required by Section 4 of Article XIV of the California Constitution, to have adequate provisions for the comfort, health and safety, and general welfare of any and all workers and their dependents to the extent of relieving the consequences of any industrial injury or death, and full provision for securing the payment of compensation. (Amended by Stats. 1986, Ch. 1128, Sec. 15. Effective September 25, 1986.)
  117. 3741.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

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    This section defines several terms used in the article about the Self-Insurers’ Security Fund.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3741. As used in this article: (a) “Director” means the Director of Industrial Relations. (b) “Private self-insurer” means a private employer which has secured the payment of compensation pursuant to subdivision (b) of Section 3700. (c) “Insolvent self-insurer” means a private self-insurer who has failed to pay compensation and whose security deposit has been called by the director pursuant to Section 3701.5. (d) “Fund” means the Self-Insurers’ Security Fund established pursuant to Section 3742. (e) “Trustees” means the Board of Trustees of the Self-Insurers’ Security Fund. (f) “Member” means a private self-insurer which participates in the Self-Insurers’ Security Fund. (Added by Stats. 1984, Ch. 252, Sec. 5. Effective June 27, 1984.)
  118. 3742.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

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    The Self-Insurers’ Security Fund must be set up as a nonprofit mutual benefit corporation, and private self-insurers must join as members unless their liabilities have been turned over to the fund.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3742. (a) The Self-Insurers’ Security Fund shall be established as a Nonprofit Mutual Benefit Corporation pursuant to Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code and this article. If any provision of the Nonprofit Mutual Benefit Corporation Law conflicts with any provision of this article, the provisions of this article shall apply. Each private self-insurer shall participate as a member in the fund, unless its liabilities have been turned over to the fund pursuant to Section 3701.5, at which time its membership in the fund is relinquished. (b) The fund shall be governed by a board of trustees with no more than eight members, as established by the bylaws of the Self-Insurers’ Security Fund. The director shall hold ex officio status, with full powers equal to those of a trustee, except that the director shall not have a vote. The director, or a delegate authorized in writing to act as the director’s representative on the board of trustees, shall carry out exclusively the responsibilities set forth in Division 1 (commencing with Section 50) through Division 4 (commencing with Section 3200) and shall not have the obligations of a trustee under the Nonprofit Mutual Benefit Corporation Law. The fund shall adopt bylaws to segregate the director from all matters that may involve fund litigation against the department or fund participation in legal proceedings before the director. Although not voting, the director or a delegate authorized in writing to represent the director, shall be counted toward a quorum of trustees. The remaining trustees shall be representatives of private self-insurers. The self-insurer trustees shall be elected by the members of the fund, each member having one vote. Trustees shall be elected to four-year terms, and shall serve until their successors are elected and assume office pursuant to the bylaws of the fund. (c) The fund shall establish bylaws as are necessary to effectuate the purposes of this article and to carry out the responsibilities of the fund, including, but not limited to, any obligations imposed by the director pursuant to Section 3701.8. The fund may carry out its responsibilities directly or by contract, and may purchase services and insurance and borrow funds as it deems necessary for the protection of the members and their employees. The fund may receive confidential information concerning the financial condition of self-insured employers whose liabilities to pay compensation may devolve upon it and shall adopt bylaws to prevent dissemination of that information. (d) The director may also require fund members to subscribe to financial instruments or guarantees to be posted with the director in order to satisfy the security requirements set by the director pursuant to Section 3701.8. (Amended by Stats. 2012, Ch. 363, Sec. 23. (SB 863) Effective January 1, 2013.)
  119. 3743.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

    Verify source ↗

    The fund must take over an insolvent self-insurer’s workers’ compensation obligations when ordered by the director, and it is not liable for penalties caused by others.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3743. (a) Upon order of the director pursuant to Section 3701.5, the fund shall assume the workers’ compensation obligations of an insolvent self-insurer. (b) Notwithstanding subdivision (a), the fund shall not be liable for the payment of any penalties assessed for any act or omission on the part of any person other than the fund, including, but not limited to, the penalties provided in Section 132a, 3706, 4553, 4554, 4556, 4557, 4558, 4601.5, 5814, or 5814.1. (c) The fund shall be a party in interest in all proceedings involving compensation claims against an insolvent self-insurer whose compensation obligations have been paid or assumed by the fund. The fund shall have the same rights and defenses as the insolvent self-insurer, including, but not limited to, all of the following: (1) To appear, defend, and appeal claims. (2) To receive notice of, investigate, adjust, compromise, settle, and pay claims. (3) To investigate, handle, and deny claims. (Added by Stats. 1984, Ch. 252, Sec. 5. Effective June 27, 1984.)
  120. 3744.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

    Verify source ↗

    The Self-Insurers’ Security Fund has rights and obligations to recover amounts from an insolvent self-insurer, including reimbursement, security deposits, and related costs.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3744. (a) (1) The fund shall have the right and obligation to obtain reimbursement from an insolvent self-insurer up to the amount of the self-insurer’s workers’ compensation obligations paid and assumed by the fund, including reasonable administrative and legal costs. This right includes, but is not limited to, a right to claim for wages and other necessities of life advanced to claimants as subrogee of the claimants in any action to collect against the self-insured as debtor. For purposes of this section, “insolvent self-insurer” includes the entity to which the certificate of consent to self-insure was issued, any guarantor of the entity’s liabilities under the certificate, any member of a self-insurance group to which the certificate was issued, and any employer who obtained employees from a self-insured employer under subdivision (d) of Section 3602. (2) The Legislature finds and declares that the amendments made to this subdivision by the act adding this paragraph are declaratory of existing law. (b) The fund shall have the right and obligation to obtain from the security deposit of an insolvent self-insurer the amount of the self-insurer’s compensation obligations, including reasonable administrative and legal costs, paid or assumed by the fund. Reimbursement of administrative costs, including legal costs, shall be subject to approval by a majority vote of the fund’s trustees. The fund shall be a party in interest in any action to obtain the security deposit for the payment of compensation obligations of an insolvent self-insurer. (c) The fund shall have the right to bring an action against any person to recover compensation paid and liability assumed by the fund, including, but not limited to, any excess insurance carrier of the self-insured employer, and any person whose negligence or breach of any obligation contributed to any underestimation of the self-insured employer’s total accrued liability as reported to the director. (d) The fund may be a party in interest in any action brought by any other person seeking damages resulting from the failure of an insolvent self-insurer to pay workers’ compensation required pursuant to this division. (e) At the election of the Self-Insurers’ Security Fund, venue shall be in the Superior Court for the State of California, County of Sacramento, for any action under this section. All actions in which the Self-Insurers’ Security Fund and two or more members or former members of one self-insurance group are parties shall be consolidated if requested by the Self-Insurers’ Security Fund. (Amended by Stats. 2012, Ch. 363, Sec. 24. (SB 863) Effective January 1, 2013.)
  121. 3745.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

    Verify source ↗

    The fund must keep enough approved assets or credit to cover an insolvent self-insurer’s compensation payments, and the trustees must report and try to collect delinquent assessments.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3745. (a) The fund shall maintain cash, readily marketable securities, or other assets, or a line of credit, approved by the director, sufficient to immediately continue the payment of the compensation obligations of an insolvent self-insurer pending assessment of the members. The director may establish the minimum amount to be maintained by, or immediately available to, the fund for this purpose. (b) The fund may assess each of its members a pro rata share of the funding necessary to carry out the purposes of this article. (c) The trustees shall certify to the director the collection and receipt of all moneys from assessments, noting any delinquencies. The trustees shall take any action deemed appropriate to collect any delinquent assessments. (Amended by Stats. 2012, Ch. 363, Sec. 25. (SB 863) Effective January 1, 2013.)
  122. 3746.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

    Verify source ↗

    The fund must get an annual independent certified audit and provide an annual financial report to the director and each member, or post the report on its website if it chooses.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3746. The fund shall annually contract for an independent certified audit of the financial activities of the fund. An annual report on the financial status of the fund as of June 30 shall be submitted to the director and to each member, or at the election of the fund, posted on the fund’s Internet Web site. (Amended by Stats. 2012, Ch. 363, Sec. 26. (SB 863) Effective January 1, 2013.)
  123. 3747.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. )

    Verify source ↗

    This article may be referred to as the “Young-La Follette Self-Insurers’ Security Act.”

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2.5. Self-Insurers’ Security Fund [3740 - 3747] ( Article 2.5 added by Stats. 1984, Ch. 252, Sec. 5. ) ## 3747. This article shall be known and may be referred to as the “Young-La Follette Self-Insurers’ Security Act.” (Added by Stats. 1984, Ch. 252, Sec. 5. Effective June 27, 1984.)
  124. 3750.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    This section says workers' compensation rules do not take away certain employer insurance-related rights.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3750. Nothing in this division shall affect: (a) The organization of any mutual or other insurer. (b) Any existing contract for insurance. (c) The right of the employer to insure in mutual or other insurers, in whole or in part, against liability for the compensation provided by this division. (d) The right to provide by mutual or other insurance, or by arrangement with his employees, or otherwise, for the payment to such employees, their families, dependents or representatives, of sick, accident, or death benefits, in addition to the compensation provided for by this division. (e) The right of the employer to waive the waiting period provided for herein by insurance coverage. (Enacted by Stats. 1937, Ch. 90.)
  125. 3751.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    Employers may not take employee contributions or deductions to cover workers’ compensation costs, and medical providers may not collect directly from an employee for related treatment while a claim is pending unless the stated notice exception applies.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3751. (a) No employer shall exact or receive from any employee any contribution, or make or take any deduction from the earnings of any employee, either directly or indirectly, to cover the whole or any part of the cost of compensation under this division. Violation of this subdivision is a misdemeanor. (b) If an employee has filed a claim form pursuant to Section 5401, a provider of medical services shall not, with actual knowledge that a claim is pending, collect money directly from the employee for services to cure or relieve the effects of the injury for which the claim form was filed, unless the medical provider has received written notice that liability for the injury has been rejected by the employer and the medical provider has provided a copy of this notice to the employee. Any medical provider who violates this subdivision shall be liable for three times the amount unlawfully collected, plus reasonable attorney’s fees and costs. (Amended by Stats. 1990, Ch. 997, Sec. 1.)
  126. 3752.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    Liability for compensation cannot be reduced or affected by insurance, contributions, or other benefits received by the entitled person, except as this division otherwise allows.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3752. Liability for compensation shall not be reduced or affected by any insurance, contribution or other benefit whatsoever due to or received by the person entitled to such compensation, except as otherwise provided by this division. (Enacted by Stats. 1937, Ch. 90.)
  127. 3753.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    A person entitled to compensation may recover it directly from the employer and may also enforce an insurer’s liability in their own name, subject to this division’s other provisions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3753. The person entitled to compensation may, irrespective of any insurance or other contract, except as otherwise provided in this division, recover such compensation directly from the employer. In addition thereto, he may enforce in his own name, in the manner provided by this division the liability of any insurer either by making the insurer a party to the original application or by filing a separate application for any portion of such compensation. (Enacted by Stats. 1937, Ch. 90.)
  128. 3754.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    Payment of compensation by the employer or insurer is a bar to recovery against them for the amount paid, except as provided in the referenced Penal Code exception.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3754. Except as provided in paragraph (12) of subdivision (f) of Section 1202.4 of the Penal Code, payment, in whole or in part, of compensation by either the employer or the insurer shall, to the extent thereof, be a bar to recovery against each of them of the amount so paid. (Amended by Stats. 2012, Ch. 868, Sec. 2. (SB 1177) Effective January 1, 2013.)
  129. 3755.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    If the employer is insured and the insurer gives notice and files a copy with the appeals board, the employer is relieved of compensation liability to that claimant and the insurer takes the employer’s place in the claim proceeding.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3755. If the employer is insured against liability for compensation, and if after the suffering of any injury the insurer causes to be served upon any compensation claimant a notice that it has assumed and agreed to pay any compensation to the claimant for which the employer is liable, such employer shall be relieved from liability for compensation to such claimant upon the filing of a copy of such notice with the appeals board. The insurer shall, without further notice, be substituted in place of the employer in any proceeding theretofore or thereafter instituted by such claimant to recover such compensation, and the employer shall be dismissed therefrom. Such proceedings shall not abate on account of such substitution but shall be continued against such insurer. (Amended by Stats. 1965, Ch. 1513.)
  130. 3756.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    If an employer is insured for the full compensation amount when a compensable injury occurs, the employer may serve a notice on the claimant and insurer, and may file a copy with the appeals board.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3756. If at the time of the suffering of a compensable injury, the employer is insured against liability for the full amount of compensation payable, he may cause to be served upon the compensation claimant and upon the insurer a notice that the insurer has agreed to pay any compensation for which the employer is liable. The employer may also file a copy of such notice with the appeals board. (Amended by Stats. 1965, Ch. 1513.)
  131. 3757.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    If the appeals board is satisfied the insurer has taken over compensation liability, the employer is relieved of that liability and the insurer is substituted into the claimant’s proceeding after notice.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3757. If it thereafter appears to the satisfaction of the appeals board that the insurer has assumed the liability for compensation, the employer shall thereupon be relieved from liability for compensation to the claimant. The insurer shall, after notice, be substituted in place of the employer in any proceeding instituted by the claimant to recover compensation, and the employer shall be dismissed therefrom. (Amended by Stats. 1965, Ch. 1513.)
  132. 3758.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    A compensation proceeding does not stop just because the insurer is substituted for the employer or the employer is dismissed; the case continues against the insurer.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3758. A proceeding to obtain compensation shall not abate on account of substitution of the insurer in place of the employer and on account of the dismissal of the employer, but shall be continued against such insurer. (Enacted by Stats. 1937, Ch. 90.)
  133. 3759.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

    Verify source ↗

    The appeals board may issue an order relieving the employer from liability if the record shows that a joined insurer is liable for the full compensation the employer owes.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3759. The appeals board may enter its order relieving the employer from liability where it appears from the pleadings, stipulations, or proof that an insurer joined as party to the proceeding is liable for the full compensation for which the employer in such proceeding is liable. (Amended by Stats. 1965, Ch. 1513.)
  134. 3760.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

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    Covered employers must file injury reports with their insurer; if they do not, the insurer or appeals board can seek an order, and noncompliance with that order may be treated as contempt.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3760. Every employer who is insured against any liability imposed by this division shall file with the insurer a complete report of every injury to each employee as specified in Section 6409.1. If not so filed, the insurer may petition the appeals board for an order, or the appeals board may of its own motion issue an order, directing the employer to submit a report of the injury within five days after service of the order. Failure of the employer to comply with the appeals board’s order may be punished by the appeals board as a contempt. (Amended by Stats. 1987, Ch. 1019, Sec. 4.)
  135. 3761.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

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    This section requires insurers and employers to exchange notice and claim information, and requires insurers to reimburse certain premium amounts if the employer successfully challenges a claim.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3761. (a) An insurer securing an employer’s liability under this division shall notify the employer, within 15 days, of each claim for indemnity filed against the employer directly with the insurer if the employer has not timely provided to the insurer a report of occupational injury or occupational illness pursuant to Section 6409.1. The insurer shall furnish an employer who has not filed this report with an opportunity to provide to the insurer, prior to the expiration of the applicable time period specified in subdivision (b) of Section 5402 for rejecting a claim, all relevant information available to the employer concerning the claim. (b) (1) An employer shall promptly notify its insurer in writing at any time during the pendency of a claim if the employer has actual knowledge of any facts that would tend to disprove any aspect of the employee’s claim. If an employer notifies its insurer in writing that, in the employer’s opinion, no compensation is payable to an employee, at the employer’s written request, to the appeals board, the appeals board may approve a compromise and release agreement, or stipulation, that provides compensation to the employee only if there is proof of service upon the employer by the insurer, to the employer’s last known address, not less than 15 days prior to the appeals board action, of notice of the time and place of the hearing at which the compromise and release agreement or stipulation is to be approved. The insurer shall file proof of this service with the appeals board. (2) Failure by the insurer to provide the required notice shall not prohibit the board from approving a compromise and release agreement, or stipulation. However, the board shall order the insurer to pay reasonable expenses as provided in Section 5813. (c) In establishing a reserve pursuant to a claim that affects premiums against an employer, an insurer shall provide the employer, upon request, a written report of the reserve amount established. The written report shall include, at a minimum, the following: (1) Estimated medical-legal costs. (2) Estimated vocational rehabilitation costs, if any. (3) Itemization of all other estimated expenses to be paid from the reserve. (d) If an employer properly provides notification to its insurer pursuant to subdivision (b), and the appeals board thereafter determines that no compensation is payable under this division, the insurer shall reimburse the employer for any premium paid solely due to the inclusion of the successfully challenged payments in the calculation of the employer’s experience modification. The employee shall not be required to refund the challenged payment. (Amended by Stats. 2022, Ch. 835, Sec. 1. (SB 1127) Effective January 1, 2023.)
  136. 3762.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. )

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    An insurer must discuss premium-related claim file items with the employer and provide copies at the employer’s expense during reasonable business hours, subject to privilege and medical-information limits.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 3. Insurance Rights and Privileges [3750 - 3762] ( Heading of Article 3 renumbered from Article 2 by Stats. 1980, Ch. 852. ) ## 3762. (a) Except as provided in subdivisions (b) and (c), the insurer shall discuss all elements of the claim file that affect the employer’s premium with the employer, and shall supply copies of the documents that affect the premium at the employer’s expense during reasonable business hours. (b) The right provided by this section shall not extend to any document that the insurer is prohibited from disclosing to the employer under the attorney-client privilege, any other applicable privilege, or statutory prohibition upon disclosure, or under Section 1877.4 of the Insurance Code. (c) An insurer, third-party administrator retained by a self-insured employer pursuant to Section 3702.1 to administer the employer’s workers’ compensation claims, and those employees and agents specified by a self-insured employer to administer the employer’s workers’ compensation claims, are prohibited from disclosing or causing to be disclosed to an employer, any medical information, as defined in Section 56.05 of the Civil Code, about an employee who has filed a workers’ compensation claim, except as follows: (1) Medical information limited to the diagnosis of the mental or physical condition for which workers’ compensation is claimed and the treatment provided for this condition. (2) Medical information regarding the injury for which workers’ compensation is claimed that is necessary for the employer to have in order for the employer to modify the employee’s work duties. (Amended by Stats. 2013, Ch. 444, Sec. 20. (SB 138) Effective January 1, 2014.)
  137. 3800.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Construction Permit [3800- 3800.] ( Heading of Article 4 renumbered from Article 3 by Stats. 1980, Ch. 852. )

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    Certain counties and cities must require permit applicants to sign a declaration about workers’ compensation coverage, and contractors must show a valid workers’ compensation insurance certificate at permit issuance; the city or county may verify coverage electronically.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 4. Construction Permit [3800- 3800.] ( Heading of Article 4 renumbered from Article 3 by Stats. 1980, Ch. 852. ) ## 3800. (a) Every county or city which requires the issuance of a permit as a condition precedent to the construction, alteration, improvement, demolition, or repair of any building or structure shall require that each applicant for the permit sign a declaration under penalty of perjury verifying workers’ compensation coverage or exemption from coverage, as required by Section 19825 of the Health and Safety Code. (b) At the time of permit issuance, contractors shall show their valid workers’ compensation insurance certificate, or the city or county may verify the workers’ compensation coverage by electronic means. (Amended by Stats. 1999, Ch. 982, Sec. 8. Effective January 1, 2000.)
  138. 3820.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 5. Workers’ Compensation Misrepresentations [3820 - 3823] ( Article 5 added by Stats. 1993, Ch. 120, Sec. 4.5. )

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    This section makes several workers’ compensation fraud-related acts unlawful and allows civil penalties for violations.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 5. Workers’ Compensation Misrepresentations [3820 - 3823] ( Article 5 added by Stats. 1993, Ch. 120, Sec. 4.5. ) ## 3820. (a) In enacting this section, the Legislature declares that there exists a compelling interest in eliminating fraud in the workers’ compensation system. The Legislature recognizes that the conduct prohibited by this section is, for the most part, already subject to criminal penalties pursuant to other provisions of law. However, the Legislature finds and declares that the addition of civil money penalties will provide necessary enforcement flexibility. The Legislature, in exercising its plenary authority related to workers’ compensation, declares that these sections are both necessary and carefully tailored to combat the fraud and abuse that is rampant in the workers’ compensation system. (b) It is unlawful to do any of the following: (1) Willfully misrepresent any fact in order to obtain workers’ compensation insurance at less than the proper rate. (2) Present or cause to be presented any knowingly false or fraudulent written or oral material statement in support of, or in opposition to, any claim for compensation for the purpose of obtaining or denying any compensation, as defined in Section 3207. (3) Knowingly solicit, receive, offer, pay, or accept any rebate, refund, commission, preference, patronage, dividend, discount, or other consideration, whether in the form of money or otherwise, as compensation or inducement for soliciting or referring clients or patients to obtain services or benefits pursuant to Division 4 (commencing with Section 3200) unless the payment or receipt of consideration for services other than the referral of clients or patients is lawful pursuant to Section 650 of the Business and Professions Code or expressly permitted by the Rules of Professional Conduct of the State Bar. (4) Knowingly operate or participate in a service that, for profit, refers or recommends clients or patients to obtain medical or medical-legal services or benefits pursuant to Division 4 (commencing with Section 3200). (5) Knowingly assist, abet, solicit, or conspire with any person who engages in an unlawful act under this section. (c) For the purposes of this section, “statement” includes, but is not limited to, any notice, proof of injury, bill for services, payment for services, hospital or doctor records, X-ray, test results, medical-legal expenses as defined in Section 4620, or other evidence of loss, expense, or payment. (d) Any person who violates any provision of this section shall be subject, in addition to any other penalties that may be prescribed by law, to a civil penalty of not less than four thousand dollars ($4,000) nor more than ten thousand dollars ($10,000), plus an assessment of not more than three times the amount of the medical treatment expenses paid pursuant to Article 2 (commencing with Section 4600) and medical-legal expenses paid pursuant to Article 2.5 (commencing with Section 4620) for each claim for compensation submitted in violation of this section. (e) Any person who violates subdivision (b) and who has a prior felony conviction of an offense set forth in Section 1871.1 or 1871.4 of the Insurance Code, or in Section 549 of the Penal Code, shall be subject, in addition to the penalties set forth in subdivision (d), to a civil penalty of four thousand dollars ($4,000) for each item or service with respect to which a violation of subdivision (b) occurred. (f) The penalties provided for in subdivisions (d) and (e) shall be assessed and recovered in a civil action brought in the name of the people of the State of California by any district attorney. (g) In assessing the amount of the civil penalty the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including, but not limited to, the following: the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth. (h) All penalties collected pursuant to this section shall be paid to the Workers’ Compensation Fraud Account in the Insurance Fund pursuant to Section 1872.83 of the Insurance Code. All costs incurred by district attorneys in carrying out this article shall be funded from the Workers’ Compensation Fraud Account. It is the intent of the Legislature that the program instituted by this article be supported entirely from funds produced by moneys deposited into the Workers’ Compensation Fraud Account from the imposition of civil money penalties for workers’ compensation fraud collected pursuant to this section. All moneys claimed by district attorneys as costs of carrying out this article shall be paid pursuant to a determination by the Fraud Assessment Commission established by Section 1872.83 of the Insurance Code and on appropriation by the Legislature. (Amended by Stats. 2002, Ch. 6, Sec. 49. Effective January 1, 2003.)
  139. 3822.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 5. Workers’ Compensation Misrepresentations [3820 - 3823] ( Article 5 added by Stats. 1993, Ch. 120, Sec. 4.5. )

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    The administrative director must send an annual fraud-warning notice to specified workers’ compensation participants and include the applicable penalties. The Fraud Assessment Commission must fund that duty.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 5. Workers’ Compensation Misrepresentations [3820 - 3823] ( Article 5 added by Stats. 1993, Ch. 120, Sec. 4.5. ) ## 3822. The administrative director shall, on an annual basis, provide to every employer, claims adjuster, third party administrator, physician, and attorney who participates in the workers’ compensation system, a notice that warns the recipient against committing workers’ compensation fraud. The notice shall specify the penalties that are applied for committing workers’ compensation fraud. The Fraud Assessment Commission, established by Section 1872.83 of the Insurance Code, shall provide the administrative director with all funds necessary to carry out this section. (Added by Stats. 2002, Ch. 6, Sec. 50. Effective January 1, 2003.)
  140. 3823.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 5. Workers’ Compensation Misrepresentations [3820 - 3823] ( Article 5 added by Stats. 1993, Ch. 120, Sec. 4.5. )

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    The administrative director must adopt fraud-reporting protocols, and certain workers’ compensation participants must report apparent fraudulent medical claims. Reporters get civil-liability protection if they act in good faith and without malice.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 4. Compensation Insurance and Security [3700 - 3823] ( Chapter 4 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 5. Workers’ Compensation Misrepresentations [3820 - 3823] ( Article 5 added by Stats. 1993, Ch. 120, Sec. 4.5. ) ## 3823. (a) The administrative director, in coordination with the Bureau of Fraudulent Claims of the Department of Insurance, the Medi-Cal Fraud Task Force, and the Division of Medi-Cal Fraud and Elder Abuse of the Department of Justice, or their successor entities, shall adopt protocols, to the extent that these protocols are applicable to achieve the purpose of subdivision (b), similar to those adopted by the Department of Insurance concerning medical billing and provider fraud. (b) An insurer, self-insured employer, third-party administrator, workers’ compensation administrative law judge, audit unit, attorney, or other person that believes that a fraudulent claim has been made by any person or entity providing medical care, as described in Section 4600, shall report the apparent fraudulent claim in the manner prescribed by subdivision (a). (c) An insurer, self-insured employer, third-party administrator, workers’ compensation administrative law judge, audit unit, attorney, or other person that reports any apparent fraudulent claim under this section shall not be subject to any civil liability in a cause of action of any kind when the insurer, self-insured employer, third-party administrator, workers’ compensation administrative law judge, audit unit, attorney, or other person acts in good faith, without malice, and reasonably believes that the action taken was warranted by the known facts, obtained by reasonable efforts. This section does not abrogate or lessen the existing common law or statutory privileges and immunities of an insurer, self-insured employer, third-party administrator, workers’ compensation administrative law judge, audit unit, attorney, or other person. (Amended by Stats. 2021, Ch. 554, Sec. 7. (SB 823) Effective January 1, 2022.)
  141. 3850.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    This section defines “employee” and “employer” for this chapter.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3850. As used in this chapter: (a) “Employee” includes the person injured and any other person to whom a claim accrues by reason of the injury or death of the former. (b) “Employer” includes insurer as defined in this division. (c) “Employer” also includes the Self-Insurers’ Security Fund, where the employer’s compensation obligations have been assumed pursuant to Section 3743. (Amended by Stats. 1984, Ch. 252, Sec. 6. Effective June 27, 1984.)
  142. 3851.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    The death of an employee or another person does not end any right of action created by this chapter.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3851. The death of the employee or of any other person, does not abate any right of action established by this chapter. (Enacted by Stats. 1937, Ch. 90.)
  143. 3852.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    An employee’s compensation claim does not take away their separate claim against a third party, and eligible employers may also pursue third-party recovery, subject to subdivision (b).

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3852. (a) The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person. In the latter event the employer may recover in the same suit, in addition to the total amount of compensation, damages for which they were liable including all salary, wage, pension, or other emolument paid to the employee or to their dependents. The respective rights against the third person of the heirs of an employee claiming under Section 377.60 of the Code of Civil Procedure, and an employer claiming pursuant to this section, shall be determined by the court. (b) (1) This subdivision applies only to an employee who is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter who is employed by any of the following: (A) A city. (B) A county. (C) A city and county. (D) A fire protection district. (2) An employer of an employee described in paragraph (1) shall be entitled to receive no more than one-third of a third-party defendant’s applicable liability insurance policy limits, if both of the following are true: (A) The employee establishes that their total damages exceed the net recovery available after satisfaction of the employer’s claim. (B) The total liability insurance limits available are insufficient to fully compensate the employer and employee’s proven damages. (3) The one-third maximum allocation under this subdivision is intended to reflect a fair and equitable share of the recovery in light of the injured employee’s total damages, attorney’s fees, and costs of suit, and shall be deemed exclusive of any lien or offset by the employer. (4) The employer’s right to reimbursement or subrogation shall be subordinate to the maximum allocation set forth in this subdivision. The maximum allocation to the employer described in this subdivision shall apply to all settlement agreements and judgments and shall take precedence over any employer lien or subrogation claim. Any remaining proceeds may then be allocated in accordance with existing lien and subrogation principles. (Amended by Stats. 2025, Ch. 763, Sec. 1. (SB 487) Effective January 1, 2026.)
  144. 3853.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    If an employee or employer sues a third person, the suing party must promptly give the other side a copy of the complaint, and proof of service must be filed.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3853. If either the employee or the employer brings an action against such third person, he shall forthwith give to the other a copy of the complaint by personal service or certified mail. Proof of such service shall be filed in such action. If the action is brought by either the employer or employee, the other may, at any time before trial on the facts, join as party plaintiff or shall consolidate his action, if brought independently. (Amended by Stats. 1980, Ch. 582.)
  145. 3854.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    If the employer prosecutes the action alone, evidence of amounts the employer paid or must pay because of the employee’s injury or death is admissible.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3854. If the action is prosecuted by the employer alone, evidence of any amount which the employer has paid or become obligated to pay by reason of the injury or death of the employee is admissible, and such expenditures or liability shall be considered as proximately resulting from such injury or death in addition to any other items of damage proximately resulting therefrom. (Amended by Stats. 1959, Ch. 1255.)
  146. 3855.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    In a case where the employee joins in or prosecutes the action, certain evidence is admissible, but not both types at once.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3855. If the employee joins in or prosecutes such action, either the evidence of the amount of disability indemnity or death benefit paid or to be paid by the employer or the evidence of loss of earning capacity by the employee shall be admissible, but not both. Proof of all other items of damage to either the employer or employee proximately resulting from such injury or death is admissible and is part of the damages. (Enacted by Stats. 1937, Ch. 90.)
  147. 3856.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    This section tells the court how to pay litigation costs, attorney fees, and reimbursement amounts from a damages judgment when an employer’s compensation claim is involved.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3856. In the event of suit against such third party: (a) If the action is prosecuted by the employer alone, the court shall first order paid from any judgment for damages recovered the reasonable litigation expenses incurred in preparation and prosecution of such action, together with a reasonable attorney’s fee which shall be based solely upon the services rendered by the employer’s attorney in effecting recovery both for the benefit of the employer and the employee. After the payment of such expenses and attorney’s fees, the court shall apply out of the amount of such judgment an amount sufficient to reimburse the employer for the amount of his expenditure for compensation together with any amounts to which he may be entitled as special damages under Section 3852 and shall order any excess paid to the injured employee or other person entitled thereto. (b) If the action is prosecuted by the employee alone, the court shall first order paid from any judgment for damages recovered the reasonable litigation expenses incurred in preparation and prosecution of such action, together with a reasonable attorney’s fee which shall be based solely upon the services rendered by the employee’s attorney in effecting recovery both for the benefit of the employee and the employer. After the payment of such expenses and attorney’s fee the court shall, on application of the employer, allow as a first lien against the amount of such judgment for damages, the amount of the employer’s expenditure for compensation together with any amounts to which he may be entitled as special damages under Section 3852. (c) If the action is prosecuted both by the employee and the employer, in a single action or in consolidated actions, and they are represented by the same agreed attorney or by separate attorneys, the court shall first order paid from any judgment for damages recovered, the reasonable litigation expenses incurred in preparation and prosecution of such action or actions, together with reasonable attorneys’ fees based solely on the services rendered for the benefit of both parties where they are represented by the same attorney, and where they are represented by separate attorneys, based solely upon the service rendered in each instance by the attorney in effecting recovery for the benefit of the party represented. After the payment of such expenses and attorneys’ fees the court shall apply out of the amount of such judgment for damages an amount sufficient to reimburse the employer for the amount of his expenditures for compensation together with any other amounts to which he may be entitled as special damages under Section 3852. (d) The amount of reasonable litigation expenses and the amount of attorneys’ fees under subdivisions (a), (b), and (c) of this section shall be fixed by the court. Where the employer and employee are represented by separate attorneys they may propose to the court, for its consideration and determination, the amount and division of such expenses and fees. (Repealed and added by Stats. 1959, Ch. 1255.)
  148. 3857.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    The court must allow a further lien for an employer’s later compensation expenditures if further application is made before the judgment is satisfied.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3857. The court shall, upon further application at any time before the judgment is satisfied, allow as a further lien the amount of any expenditures of the employer for compensation subsequent to the original order. (Enacted by Stats. 1937, Ch. 90.)
  149. 3858.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    This section limits an employer’s lien/subrogation recovery and, in some cases, relieves the employer from further compensation after lien and fee payments.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 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. (Amended by Stats. 2025, Ch. 763, Sec. 2. (SB 487) Effective January 1, 2026.)
  150. 3859.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    Settlements or releases under this chapter generally need the written consent of both employee and employer, but an employee may settle a third-party claim without employer consent in the situations described, and employer reimbursement rights are limited in cases governed by Section 3852(b).

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3859. (a) (1) Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law. (2) The written consent of the employer is not required in a claim that is subject to subdivision (b) of Section 3852. (b) (1) Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim they may have against a third party without the consent of the employer. Except as provided in paragraph (2), a settlement or release shall be subject to the employer’s right to proceed to recover compensation they have paid in accordance with Section 3852. (2) In any case governed by subdivision (b) of Section 3852, a settlement or release shall limit the employer’s claim for reimbursement to the portion of the settlement allocated to the employer pursuant to subdivision (b) of Section 3852. (Amended by Stats. 2025, Ch. 763, Sec. 3. (SB 487) Effective January 1, 2026.)
  151. 3860.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    This section limits how certain workers’ compensation settlements and releases are handled, including reimbursement, expenses, attorney’s fees, and who sets those amounts.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3860. (a) (1) Except as provided in paragraph (2), a release or settlement under this chapter, with or without suit, is not valid or binding as to any party thereto without notice to both the employer and the employee, with opportunity to the employer to recover the amount of compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, and opportunity to the employee to recover all damages the employee has suffered and with provision for determination of expenses and attorney’s fees as herein provided. (2) If the employee is a peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, or a firefighter, a release or settlement, with or without suit, subject to subdivision (b) of Section 3852, is not valid or binding unless it provides that the employer shall not receive more than one-third of the third-party insurance limits. (b) (1) Except as provided in paragraph (2) and Section 3859, the entire amount of the settlement, with or without suit, is subject to the employer’s full claim for reimbursement for compensation the employer has paid or become obligated to pay and any special damages to which the employer may be entitled under Section 3852, together with expenses and attorney’s fees, if any, subject to the limitations in this section set forth. (2) Pursuant to subdivision (b) of Section 3852, the employer’s claim for reimbursement shall be limited to the portion of the settlement allocated to the employer. The employer shall have no right to assert any credit or offset against future workers’ compensation benefits. (c) If settlement is effected, with or without suit, solely through the efforts of the employee’s attorney, then prior to the reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorney’s fees to be paid to the employee’s attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee. (d) If settlement is effected, with or without suit, solely through the efforts of the employer’s attorney, then, prior to the reimbursement of the employer as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred in effecting settlement, including costs of suit, if any, together with reasonable attorney’s fees to be paid to the employer’s attorney, for services rendered in securing and effecting settlement for the benefit of both the employer and the employee. (e) If both the employer and the employee are represented by the same agreed attorney or by separate attorneys in effecting a settlement, with or without suit, prior to reimbursement of the employer, as provided in subdivision (b) hereof, there shall be deducted from the amount of the settlement the reasonable expenses incurred by both the employer and the employee or on behalf of either, including costs of suit, if any, together with reasonable attorney’s fees to be paid to the respective attorneys for the employer and the employee, based upon the respective services rendered in securing and effecting settlement for the benefit of the party represented. If both parties are represented by the same attorney, by agreement, the attorney’s fees shall be based on the services rendered for the benefit of both. (f) The amount of expenses and attorney’s fees referred to in this section shall, on settlement of suit, or on any settlement requiring court approval, be set by the court. In all other cases these amounts shall be set by the appeals board. If the employer and the employee are represented by separate attorneys they may propose to the court or the appeals board, for consideration and determination, the amount and division of those expenses and fees. (Amended by Stats. 2025, Ch. 763, Sec. 4. (SB 487) Effective January 1, 2026.)
  152. 3861.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    The appeals board must allow an employer credit against compensation liability for certain employee recoveries, except in subdivision (b) cases. In those subdivision (b) claims, the employer may not claim or enforce the credit, and the board may not allow it.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3861. (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. (Amended by Stats. 2025, Ch. 763, Sec. 5. (SB 487) Effective January 1, 2026.)
  153. 3862.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    An employer with a perfected lien may enforce it against the third party, or against the employee up to the lien amount, but only subject to the stated limits.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3862. (a) Except as provided in subdivision (b), an employer entitled to and who has been allowed and has perfected a lien upon the judgment or award in favor of an employee against any third party for damages occasioned to the same employer by payment of compensation, expenses of medical treatment, and any other charges under this act, may enforce payment of the lien against the third party, or, in case the damages recovered by the employee have been paid to the employee, against the employee to the extent of the lien, in the manner provided for enforcement of money judgments generally. (b) Pursuant to subdivision (b) of Section 3852, the employer’s claim for reimbursement shall be limited to the portion of the settlement allocated to the employer. The employer shall have no right to assert any credit or offset against future workers’ compensation benefits. (Amended by Stats. 2025, Ch. 763, Sec. 6. (SB 487) Effective January 1, 2026.)
  154. 3864.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    The employer is not liable to reimburse or hold a third person harmless for a judgment or settlement from this kind of action unless there was a written agreement made before the injury.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3864. If an action as provided in this chapter prosecuted by the employee, the employer, or both jointly against the third person results in judgment against such third person, or settlement by such third person, the employer shall have no liability to reimburse or hold such third person harmless on such judgment or settlement in absence of a written agreement so to do executed prior to the injury. (Added by Stats. 1959, Ch. 955.)
  155. 3865.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. )

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    A court must treat certain judgments or settlements under this chapter as subject to the Employment Development Department’s lien claims, after notice to the court.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 5. Subrogation of Employer [3850 - 3865] ( Chapter 5 enacted by Stats. 1937, Ch. 90. ) ## 3865. Any judgment or settlement of an action as provided for in this chapter is, upon notice to the court, subject to the same lien claims of the Employment Development Department as are provided for in Chapter 1 (commencing with Section 4900) of Part 3, and shall be allowed by the court as it determines necessary to avoid a duplication of payment as compensation to the employee for lost earnings. (Added by Stats. 1989, Ch. 1280, Sec. 1.)
  156. 4.

    ## Labor Code - LAB ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1937, Ch. 90. )

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    This section says pending actions or proceedings already started before the code takes effect, and rights already accrued, are not affected; later procedure in those matters should conform to the code as far as possible.

    ## Labor Code - LAB ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1937, Ch. 90. ) ## 4. No action or proceeding commenced before this code takes effect, and no right accrued, is affected by the provisions of this code, but all procedure thereafter taken therein shall conform to the provisions of this code so far as possible. (Enacted by Stats. 1937, Ch. 90.)
  157. 400.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    This section defines “applicant” for this article as an applicant for employment.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 400. As used in this article, “applicant” means an applicant for employment. (Enacted by Stats. 1937, Ch. 90.)
  158. 401.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

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    If an employer requires a bond or photograph for an employee or applicant, the employer must pay the cost.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 401. If a bond or photograph of an employee or applicant is required by any employer, the cost thereof shall be paid by the employer. (Enacted by Stats. 1937, Ch. 90.)
  159. 402.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Employers generally may not require, take, or accept a cash bond from an employee or job applicant.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 402. No employer shall demand, exact, or accept any cash bond from any employee or applicant unless: (a) The employee or applicant is entrusted with property of an equivalent value, or (b) The employer advances regularly to the employee goods, wares, or merchandise to be delivered or sold by the employee, and for which the employer is reimbursed by the employee at regular periodic intervals, and the employer limits the cash bond to an amount sufficient to cover the value of the goods, wares, or merchandise so advanced during the period prior to the payment therefor. (Enacted by Stats. 1937, Ch. 90.)
  160. 403.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Cash received as a bond must be handled through a written agreement and, if deposited, kept in a savings account at a bank authorized to do business in the state.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 403. If cash is received as a bond it shall be deposited in a savings account in a bank authorized to do business in this State, and may be withdrawn only upon the joint signatures of the employer and the employee or applicant. Cash put up as a bond shall be accompanied by an agreement in writing made by the employer and employee or applicant, setting forth the conditions under which the bond is given. (Enacted by Stats. 1937, Ch. 90.)
  161. 404.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Money posted as a bond under Sections 401 to 403 generally cannot be used to satisfy a money judgment, except in an action between the employer and the employee or applicant, or their successors or assigns.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 404. Any money put up as a bond under Sections 401, 402 and 403: (a) Is not subject to enforcement of a money judgment except in an action between the employer and the employee or applicant, or their successors or assigns. (b) Shall be returned to the employee or applicant together with accrued interest thereon, immediately upon the return of the money or property entrusted to the employee or applicant and upon the fulfillment of the agreement, subject only to the deduction necessary to balance accounts between the employer and employee or applicant. (Amended by Stats. 1982, Ch. 497, Sec. 133. Operative July 1, 1983, by Sec. 185 of Ch. 497.)
  162. 405.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Bond property posted by an employee or applicant must be kept in trust for limited purposes and not mixed with the employer’s property.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 405. Any property put up by any employee or applicant as a bond shall not be used for any purpose other than liquidating accounts between the employer and employee or for return to the employee or applicant and shall be held in trust for this purpose and not mingled with the property of the employer. No contract between the employer and employee or applicant shall abrogate the provisions of this section. Any employer or prospective employer, or agent or officer thereof, who misappropriates any such property, mingles it with his own, or uses it for any other purpose than that herein set forth is guilty of theft and shall be punished in accordance with the provisions of the Penal Code relating to theft. (Enacted by Stats. 1937, Ch. 90.)
  163. 4050.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    An employee with a compensation right must submit to medical examinations at reasonable intervals when the employer makes a written request, and also when a physician is selected by the administrative director, appeals board, or a referee.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4050. Whenever the right to compensation under this division exists in favor of an employee, he shall, upon the written request of his employer, submit at reasonable intervals to examination by a practicing physician, provided and paid for by the employer, and shall likewise submit to examination at reasonable intervals by any physician selected by the administrative director or appeals board or referee thereof. (Amended by Stats. 1965, Ch. 1513.)
  164. 4051.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    A request or order for a medical examination must set the time and place, while considering the employee’s convenience, physical condition, and ability to attend.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4051. The request or order for the medical examination shall fix a time and place therefor, due consideration being given to the convenience of the employee and his physical condition and ability to attend at the time and place fixed. (Enacted by Stats. 1937, Ch. 90.)
  165. 4052.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    An employee may pay for and bring a physician to any examination required by the employer.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4052. The employee may employ at his own expense a physician, to be present at any examination required by his employer. (Enacted by Stats. 1937, Ch. 90.)
  166. 4053.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If an employee, after the employer’s written request, refuses or fails to undergo the examination or obstructs it, the employee’s right to start or continue a compensation proceeding is suspended.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4053. So long as the employee, after written request of the employer, fails or refuses to submit to such examination or in any way obstructs it, his right to begin or maintain any proceeding for the collection of compensation shall be suspended. (Enacted by Stats. 1937, Ch. 90.)
  167. 4054.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If an employee refuses or fails to submit to an examination ordered by the appeals board or a referee, or obstructs the examination, disability payments for that period are barred.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4054. If the employee fails or refuses to submit to examination after direction by the appeals board, or a referee thereof, or in any way obstructs the examination, his right to the disability payments which accrue during the period of such failure, refusal or obstruction, shall be barred. (Amended by Stats. 1965, Ch. 1513.)
  168. 4055.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    A physician who makes or attends the examination may be required to report or testify about its results.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4055. Any physician who makes or is present at any such examination may be required to report or testify as to the results thereof. (Enacted by Stats. 1937, Ch. 90.)
  169. 4055.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    If a party subpoenas records in a proceeding under this division, that party must send a copy of the subpoena to all parties of record at the same time the subpoena is served on the record holder.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4055.2. Any party who subpoenas records in any proceeding under this division shall concurrent with service of the subpoena upon the person who has possession of the records, send a copy of the subpoena to all parties of record in the proceeding. (Amended by Stats. 1999, Ch. 444, Sec. 7. Effective January 1, 2000.)
  170. 4056.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Compensation is not payable if an employee’s death or disability is caused, continued, or aggravated by an unreasonable refusal to accept medical or surgical treatment, when the treatment risk is inconsiderable in light of the injury.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## 4056. No compensation is payable in case of the death or disability of an employee when his death is caused, or when and so far as his disability is caused, continued, or aggravated, by an unreasonable refusal to submit to medical treatment, or to any surgical treatment, if the risk of the treatment is, in the opinion of the appeals board, based upon expert medical or surgical advice, inconsiderable in view of the seriousness of the injury. (Amended by Stats. 1965, Ch. 1513.)
  171. 406.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Property an employee or applicant puts up as part of employment is treated as a bond and falls under this article.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 406. Any property put up by an employee, or applicant as a part of the contract of employment, directly or indirectly, shall be deemed to be put up as a bond and is subject to the provisions of this article whether the property is put up on a note or as a loan or an investment and regardless of the wording of the agreement under which it is put up. (Enacted by Stats. 1937, Ch. 90.)
  172. 4060.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    This section limits who pays for certain medical-legal evaluations and sets notice and procedure rules when compensability is disputed.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4060. (a) This section shall apply to disputes over the compensability of any injury. This section shall not apply where injury to any part or parts of the body is accepted as compensable by the employer. (b) Neither the employer nor the employee shall be liable for any comprehensive medical-legal evaluation performed by other than the treating physician, except as provided in this section. However, reports of treating physicians shall be admissible. (c) If a medical evaluation is required to determine compensability at any time after the filing of the claim form, and the employee is represented by an attorney, a medical evaluation to determine compensability shall be obtained only by the procedure provided in Section 4062.2. (d) If a medical evaluation is required to determine compensability at any time after the claim form is filed, and the employee is not represented by an attorney, the employer shall provide the employee with notice either that the employer requests a comprehensive medical evaluation to determine compensability or that the employer has not accepted liability and the employee may request a comprehensive medical evaluation to determine compensability. Either party may request a comprehensive medical evaluation to determine compensability. The evaluation shall be obtained only by the procedure provided in Section 4062.1. (e) The notice required by subdivision (d) shall be accompanied by the form prescribed by the administrative director for requesting the assignment of a panel of qualified medical evaluators. (Amended by Stats. 2011, Ch. 544, Sec. 3. (AB 335) Effective January 1, 2012.)
  173. 4061.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    This section sets the process for notices, medical evaluations, and disability-rating disputes in workers’ compensation cases.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4061. This section shall not apply to the employee’s dispute of a utilization review decision under Section 4610, nor to the employee’s dispute of the medical provider network treating physician’s diagnosis or treatment recommendations under Sections 4616.3 and 4616.4. (a) Together with the last payment of temporary disability indemnity, the employer shall, in a form prescribed by the administrative director pursuant to Section 138.4, provide the employee one of the following: (1) Notice either that no permanent disability indemnity will be paid because the employer alleges the employee has no permanent impairment or limitations resulting from the injury or notice of the amount of permanent disability indemnity determined by the employer to be payable. If the employer determines permanent disability indemnity is payable, the employer shall advise the employee of the amount determined payable and the basis on which the determination was made, whether there is need for future medical care, and whether an indemnity payment will be deferred pursuant to paragraph (2) of subdivision (b) of Section 4650. (2) Notice that permanent disability indemnity may be or is payable, but that the amount cannot be determined because the employee’s medical condition is not yet permanent and stationary. The notice shall advise the employee that his or her medical condition will be monitored until it is permanent and stationary, at which time the necessary evaluation will be performed to determine the existence and extent of permanent impairment and limitations for the purpose of rating permanent disability and to determine whether there will be the need for future medical care, or at which time the employer will advise the employee of the amount of permanent disability indemnity the employer has determined to be payable. (b) If either the employee or employer objects to a medical determination made by the treating physician concerning the existence or extent of permanent impairment and limitations or the need for future medical care, and the employee is represented by an attorney, a medical evaluation to determine permanent disability shall be obtained as provided in Section 4062.2. (c) If either the employee or employer objects to a medical determination made by the treating physician concerning the existence or extent of permanent impairment and limitations or the need for future medical care, and if the employee is not represented by an attorney, the employer shall immediately provide the employee with a form prescribed by the medical director with which to request assignment of a panel of three qualified medical evaluators. Either party may request a comprehensive medical evaluation to determine permanent disability or the need for future medical care, and the evaluation shall be obtained only by the procedure provided in Section 4062.1. (d) (1) Within 30 days of receipt of a report from a qualified medical evaluator who has evaluated an unrepresented employee, the unrepresented employee or the employer may each request one supplemental report seeking correction of factual errors in the report. Any of these requests shall be made in writing. A request made by the employer shall be provided to the employee, and a request made by the employee shall be provided to the employer, insurance carrier, or claims administrator at the time the request is sent to the evaluator. A request for correction that is made by the employer shall also inform the employee of the availability of information and assistance officers to assist him or her in responding to the request, if necessary. (2) The permanent disability rating procedure set forth in subdivision (e) shall not be invoked by the unrepresented employee or the employer when a request for correction pursuant to paragraph (1) is pending. (e) The qualified medical evaluator who has evaluated an unrepresented employee shall serve the comprehensive medical evaluation and the summary form on the employee, employer, and the administrative director. The unrepresented employee or the employer may submit the treating physician’s evaluation for the calculation of a permanent disability rating. Within 20 days of receipt of the comprehensive medical evaluation, the administrative director shall calculate the permanent disability rating according to Section 4660 or 4660.1, as applicable, and serve the rating on the employee and employer. (f) Any comprehensive medical evaluation concerning an unrepresented employee which indicates that part or all of an employee’s permanent impairment or limitations may be subject to apportionment pursuant to Sections 4663 and 4664 shall first be submitted by the administrative director to a workers’ compensation judge who may refer the report back to the qualified medical evaluator for correction or clarification if the judge determines the proposed apportionment is inconsistent with the law. (g) Within 30 days of receipt of the rating, if the employee is unrepresented, the employee or employer may request that the administrative director reconsider the recommended rating or obtain additional information from the treating physician or medical evaluator to address issues not addressed or not completely addressed in the original comprehensive medical evaluation or not prepared in accord with the procedures promulgated under paragraph (2) or (3) of subdivision (j) of Section 139.2. This request shall be in writing, shall specify the reasons the rating should be reconsidered, and shall be served on the other party. If the administrative director finds the comprehensive medical evaluation is not complete or not in compliance with the required procedures, the administrative director shall return the report to the treating physician or qualified medical evaluator for appropriate action as the administrative director instructs. Upon receipt of the treating physician’s or qualified medical evaluator’s final comprehensive medical evaluation and summary form, the administrative director shall recalculate the permanent disability rating according to Section 4660 or 4660.1, as applicable, and serve the rating, the comprehensive medical evaluation, and the summary form on the employee and employer. (h) (1) If a comprehensive medical evaluation from the treating physician or an agreed medical evaluator or a qualified medical evaluator selected from a three-member panel resolves any issue so as to require an employer to provide compensation, the employer shall commence the payment of compensation, except as provided pursuant to paragraph (2) of subdivision (b) of Section 4650, or promptly commence proceedings before the appeals board to resolve the dispute. (2) If the employee and employer agree to a stipulated findings and award as provided under Section 5702 or to compromise and release the claim under Chapter 2 (commencing with Section 5000) of Part 3, or if the employee wishes to commute the award under Chapter 3 (commencing with Section 5100) of Part 3, the appeals board shall first determine whether the agreement or commutation is in the best interests of the employee and whether the proper procedures have been followed in determining the permanent disability rating. The administrative director shall promulgate a form to notify the employee, at the time of service of any rating under this section, of the options specified in this subdivision, the potential advantages and disadvantages of each option, and the procedure for disputing the rating. (i) No issue relating to a dispute over the existence or extent of permanent impairment and limitations resulting from the injury may be the subject of a declaration of readiness to proceed unless there has first been a medical evaluation by a treating physician and by either an agreed or qualified medical evaluator. With the exception of an evaluation or evaluations prepared by the treating physician or physicians, no evaluation of permanent impairment and limitations resulting from the injury shall be obtained, except in accordance with Section 4062.1 or 4062.2. Evaluations obtained in violation of this prohibition shall not be admissible in any proceeding before the appeals board. (Amended by Stats. 2013, Ch. 287, Sec. 4. (SB 375) Effective January 1, 2014.)
  174. 4061.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    The treating physician, or a physician designated by that treating physician, must give opinions on medical issues needed to decide compensation eligibility. If there is more than one treating physician, the physician in charge must prepare one report combining their findings.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4061.5. The treating physician primarily responsible for managing the care of the injured worker or the physician designated by that treating physician shall, in accordance with rules promulgated by the administrative director, render opinions on all medical issues necessary to determine eligibility for compensation. In the event that there is more than one treating physician, a single report shall be prepared by the physician primarily responsible for managing the injured worker’s care that incorporates the findings of the various treating physicians. (Added by Stats. 1993, Ch. 121, Sec. 31. Effective July 16, 1993.)
  175. 4062.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    If an employee or employer objects to a treating physician’s medical determination, the objection must be given in writing within 20 or 30 days depending on whether the employee has an attorney; the employer must also give an unrepresented employee a prescribed form immediately.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4062. (a) If either the employee or employer objects to a medical determination made by the treating physician concerning any medical issues not covered by Section 4060 or 4061 and not subject to Section 4610, the objecting party shall notify the other party in writing of the objection within 20 days of receipt of the report if the employee is represented by an attorney or within 30 days of receipt of the report if the employee is not represented by an attorney. These time limits may be extended for good cause or by mutual agreement. If the employee is represented by an attorney, a medical evaluation to determine the disputed medical issue shall be obtained as provided in Section 4062.2, and no other medical evaluation shall be obtained. If the employee is not represented by an attorney, the employer shall immediately provide the employee with a form prescribed by the medical director with which to request assignment of a panel of three qualified medical evaluators, the evaluation shall be obtained as provided in Section 4062.1, and no other medical evaluation shall be obtained. (b) If the employee objects to a decision made pursuant to Section 4610 to modify, delay, or deny a request for authorization of a medical treatment recommendation made by a treating physician, the objection shall be resolved only in accordance with the independent medical review process established in Section 4610.5. (c) If the employee objects to the diagnosis or recommendation for medical treatment by a physician within the employer’s medical provider network established pursuant to Section 4616, the objection shall be resolved only in accordance with the independent medical review process established in Sections 4616.3 and 4616.4. (Amended by Stats. 2012, Ch. 363, Sec. 28. (SB 863) Effective January 1, 2013.)
  176. 4062.1.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    This section sets rules for selecting and scheduling medical evaluators, limits what an employer can do when an employee is unrepresented, and gives the employee a right to a new panel in some cases.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4062.1. (a) If an employee is not represented by an attorney, the employer shall not seek agreement with the employee on an agreed medical evaluator, nor shall an agreed medical evaluator prepare the formal medical evaluation on any issues in dispute. (b) If either party requests a medical evaluation pursuant to Section 4060, 4061, or 4062, either party may submit the form prescribed by the administrative director requesting the medical director to assign a panel of three qualified medical evaluators in accordance with Section 139.2. However, the employer may not submit the form unless the employee has not submitted the form within 10 days after the employer has furnished the form to the employee and requested the employee to submit the form. The party submitting the request form shall designate the specialty of the physicians that will be assigned to the panel. (c) Within 10 days of the issuance of a panel of qualified medical evaluators, the employee shall select a physician from the panel to prepare a medical evaluation, the employee shall schedule the appointment, and the employee shall inform the employer of the selection and the appointment. If the employee does not inform the employer of the selection within 10 days of the assignment of a panel of qualified medical evaluators, then the employer may select the physician from the panel to prepare a medical evaluation. If the employee informs the employer of the selection within 10 days of the assignment of the panel but has not made the appointment, or if the employer selects the physician pursuant to this subdivision, then the employer shall arrange the appointment. Upon receipt of written notice of the appointment arrangements from the employee, or upon giving the employee notice of an appointment arranged by the employer, the employer shall furnish payment of estimated travel expense. (d) The evaluator shall give the employee, at the appointment, a brief opportunity to ask questions concerning the evaluation process and the evaluator’s background. The unrepresented employee shall then participate in the evaluation as requested by the evaluator unless the employee has good cause to discontinue the evaluation. For purposes of this subdivision, “good cause” shall include evidence that the evaluator is biased against the employee because of his or her race, sex, national origin, religion, or sexual preference or evidence that the evaluator has requested the employee to submit to an unnecessary medical examination or procedure. If the unrepresented employee declines to proceed with the evaluation, he or she shall have the right to a new panel of three qualified medical evaluators from which to select one to prepare a comprehensive medical evaluation. If the appeals board subsequently determines that the employee did not have good cause to not proceed with the evaluation, the cost of the evaluation shall be deducted from any award the employee obtains. (e) If an employee has received a comprehensive medical-legal evaluation under this section, and he or she later becomes represented by an attorney, he or she shall not be entitled to an additional evaluation. (Amended by Stats. 2004, Ch. 34, Sec. 16. Effective April 19, 2004.)
  177. 4062.2.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    This section controls how a comprehensive medical evaluation is selected and conducted in certain represented-employee disputes.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4062.2. (a) Whenever a comprehensive medical evaluation is required to resolve any dispute arising out of an injury or a claimed injury occurring on or after January 1, 2005, and the employee is represented by an attorney, the evaluation shall be obtained only as provided in this section. (b) No earlier than the first working day that is at least 10 days after the date of mailing of a request for a medical evaluation pursuant to Section 4060 or the first working day that is at least 10 days after the date of mailing of an objection pursuant to Sections 4061 or 4062, either party may request the assignment of a three-member panel of qualified medical evaluators to conduct a comprehensive medical evaluation. The party submitting the request shall designate the specialty of the medical evaluator, the specialty of the medical evaluator requested by the other party if it has been made known to the party submitting the request, and the specialty of the treating physician. The party submitting the request form shall serve a copy of the request form on the other party. (c) Within 10 days of assignment of the panel by the administrative director, each party may strike one name from the panel. The remaining qualified medical evaluator shall serve as the medical evaluator. If a party fails to exercise the right to strike a name from the panel within 10 days of assignment of the panel by the administrative director, the other party may select any physician who remains on the panel to serve as the medical evaluator. The administrative director may prescribe the form, the manner, or both, by which the parties shall conduct the selection process. (d) The represented employee shall be responsible for arranging the appointment for the examination, but upon his or her failure to inform the employer of the appointment within 10 days after the medical evaluator has been selected, the employer may arrange the appointment and notify the employee of the arrangements. The employee shall not unreasonably refuse to participate in the evaluation. (e) If an employee has received a comprehensive medical-legal evaluation under this section, and he or she later ceases to be represented, he or she shall not be entitled to an additional evaluation. (f) The parties may agree to an agreed medical evaluator at any time, except as to issues subject to the independent medical review process established pursuant to Section 4610.5. A panel shall not be requested pursuant to subdivision (b) on any issue that has been agreed to be submitted to or has been submitted to an agreed medical evaluator unless the agreement has been canceled by mutual written consent. (Amended by Stats. 2012, Ch. 363, Sec. 29. (SB 863) Effective January 1, 2013.)
  178. 4062.3.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    This section regulates what information and communications may be shared with medical evaluators in workers’ compensation medical evaluations, requires advance written service on the opposing party, and prohibits ex parte communication.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4062.3. (a) Any party may provide to the qualified medical evaluator selected from a panel any of the following information: (1) Records prepared or maintained by the employee’s treating physician or physicians. (2) Medical and nonmedical records relevant to determination of the medical issue. (b) Information that a party proposes to provide to the qualified medical evaluator selected from a panel shall be served on the opposing party 20 days before the information is provided to the evaluator. If the opposing party objects to consideration of nonmedical records within 10 days thereafter, the records shall not be provided to the evaluator. Either party may use discovery to establish the accuracy or authenticity of nonmedical records prior to the evaluation. (c) If an agreed medical evaluator is selected, as part of their agreement on an evaluator, the parties shall agree on what information is to be provided to the agreed medical evaluator. (d) In any formal medical evaluation, the agreed or qualified medical evaluator shall identify the following: (1) All information received from the parties. (2) All information reviewed in preparation of the report. (3) All information relied upon in the formulation of his or her opinion. (e) All communications with a qualified medical evaluator selected from a panel before a medical evaluation shall be in writing and shall be served on the opposing party 20 days in advance of the evaluation. Any subsequent communication with the medical evaluator shall be in writing and shall be served on the opposing party when sent to the medical evaluator. (f) Communications with an agreed medical evaluator shall be in writing, and shall be served on the opposing party when sent to the agreed medical evaluator. Oral or written communications with physician staff or, as applicable, with the agreed medical evaluator, relative to nonsubstantial matters such as the scheduling of appointments, missed appointments, the furnishing of records and reports, and the availability of the report, do not constitute ex parte communication in violation of this section unless the appeals board has made a specific finding of an impermissible ex parte communication. (g) Ex parte communication with an agreed medical evaluator or a qualified medical evaluator selected from a panel is prohibited. If a party communicates with the agreed medical evaluator or the qualified medical evaluator in violation of subdivision (e), the aggrieved party may elect to terminate the medical evaluation and seek a new evaluation from another qualified medical evaluator to be selected according to Section 4062.1 or 4062.2, as applicable, or proceed with the initial evaluation. (h) The party making the communication prohibited by this section shall be subject to being charged with contempt before the appeals board and shall be liable for the costs incurred by the aggrieved party as a result of the prohibited communication, including the cost of the medical evaluation, additional discovery costs, and attorney’s fees for related discovery. (i) Subdivisions (e) and (g) shall not apply to oral or written communications by the employee or, if the employee is deceased, the employee’s dependent, in the course of the examination or at the request of the evaluator in connection with the examination. (j) Upon completing a determination of the disputed medical issue, the medical evaluator shall summarize the medical findings on a form prescribed by the administrative director and shall serve the formal medical evaluation and the summary form on the employee and the employer. The medical evaluation shall address all contested medical issues arising from all injuries reported on one or more claim forms prior to the date of the employee’s initial appointment with the medical evaluator. (k) If, after a medical evaluation is prepared, the employer or the employee subsequently objects to any new medical issue, the parties, to the extent possible, shall utilize the same medical evaluator who prepared the previous evaluation to resolve the medical dispute. (l) No disputed medical issue specified in subdivision (a) may be the subject of declaration of readiness to proceed unless there has first been an evaluation by the treating physician or an agreed or qualified medical evaluator. (Amended by Stats. 2012, Ch. 363, Sec. 30. (SB 863) Effective January 1, 2013.)
  179. 4062.4.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    The administrative director must provide a template QME report form and a medical evaluation request form, and the Division of Workers’ Compensation must adopt implementing regulations by no later than January 1, 2027.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4062.4. (a) (1) The administrative director shall develop and make available a template qualified medical evaluator (QME) report form, which shall include all necessary statutory and regulatory requirements for a QME report. (2) Use of a template QME report form developed pursuant to paragraph (1) does not constitute prima facie evidence that a report is complete, accurate, or compliant with applicable statutory or regulatory requirements. (b) (1) The administrative director shall develop and make available a medical evaluation request form for communicating with a panel qualified medical evaluator pursuant to Section 4062.3 in advance of an evaluation obtained pursuant to Section 4062.1 or 4062.2. (2) This subdivision does not limit a party’s right to submit relevant information to a qualified medical evaluator pursuant to Section 4062.3. (c) The Division of Workers’ Compensation, acting in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), shall adopt regulations to implement this chapter with an effective date of no later than January 1, 2027. (Added by Stats. 2025, Ch. 298, Sec. 1. (AB 1293) Effective January 1, 2026.)
  180. 4062.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    If a panel-selected qualified medical evaluator misses the required deadline, either party may request a new evaluation. The employee and employer generally have no liability for payment for that untimely evaluation unless they both waive the right to a new evaluation and accept the original evaluation.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4062.5. If a qualified medical evaluator selected from a panel fails to complete the formal medical evaluation within the timeframes established by the administrative director pursuant to paragraph (1) of subdivision (j) of Section 139.2, a new evaluation may be obtained upon the request of either party, as provided in Sections 4062.1 or 4062.2. Neither the employee nor the employer shall have any liability for payment for the formal medical evaluation which was not completed within the required timeframes unless the employee or employer, on forms prescribed by the administrative director, each waive the right to a new evaluation and elects to accept the original evaluation even though it was not completed within the required timeframes. (Amended by Stats. 2004, Ch. 34, Sec. 20. Effective April 19, 2004.)
  181. 4062.8.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    The administrative director must develop educational materials by January 1, 2004 and revise them as needed after that.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4062.8. The administrative director shall develop, not later than January 1, 2004, and periodically revise as necessary thereafter, educational materials to be used to provide treating physicians, as described in Section 3209.3, or other providers, as described in Section 3209.5, with information and training in basic concepts of workers’ compensation, the role of the treating physician, the conduct of permanent and stationary evaluations, and report writing, as appropriate. (Added by Stats. 2004, Ch. 34, Sec. 21. Effective April 19, 2004.)
  182. 4063.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    If a qualifying medical evaluation resolves an issue in a way that requires compensation, the employer must start paying compensation or file a declaration of readiness to proceed, unless a specified Section 4650 exception applies.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4063. If a formal medical evaluation from an agreed medical evaluator or a qualified medical evaluator selected from a three member panel resolves any issue so as to require an employer to provide compensation, the employer shall, except as provided pursuant to paragraph (2) of subdivision (b) of Section 4650, commence the payment of compensation or file a declaration of readiness to proceed. (Amended by Stats. 2012, Ch. 363, Sec. 31. (SB 863) Effective January 1, 2013.)
  183. 4064.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    Employers must pay specified reasonable medical-legal evaluation costs, and in one case attorney fees, while parties may obtain other evaluations at their own expense.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4064. (a) The employer shall be liable for the cost of each reasonable and necessary comprehensive medical-legal evaluation obtained by the employee pursuant to Sections 4060, 4061, and 4062. Each comprehensive medical-legal evaluation shall address all contested medical issues arising from all injuries reported on one or more claim forms, except medical treatment recommendations, which are subject to utilization review as provided by Section 4610, and objections to utilization review determinations, which are subject to independent medical review as provided by Section 4610.5. (b) For injuries occurring on or after January 1, 2003, if an unrepresented employee obtains an attorney after the evaluation pursuant to subdivision (d) of Section 4061 or subdivision (b) of Section 4062 has been completed, the employee shall be entitled to the same reports at employer expense as an employee who has been represented from the time the dispute arose and those reports shall be admissible in any proceeding before the appeals board. (c) Subject to Section 4906, if an employer files a declaration of readiness to proceed and the employee is unrepresented at the time the declaration of readiness to proceed is filed, the employer shall be liable for any attorney’s fees incurred by the employee in connection with the declaration of readiness to proceed. (d) The employer shall not be liable for the cost of any comprehensive medical evaluations obtained by the employee other than those authorized pursuant to Sections 4060, 4061, and 4062. However, no party is prohibited from obtaining any medical evaluation or consultation at the party’s own expense. In no event shall an employer or employee be liable for an evaluation obtained in violation of subdivision (b) of Section 4060. All comprehensive medical evaluations obtained by any party shall be admissible in any proceeding before the appeals board except as provided in Section 4060, 4061, 4062, 4062.1, or 4062.2. (Amended by Stats. 2012, Ch. 363, Sec. 32. (SB 863) Effective January 1, 2013.)
  184. 4067.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    If the appeals board’s jurisdiction is invoked under Section 5803 because an injury has changed, a formal medical evaluation must be obtained. If there was already a formal evaluation of the same or similar issues, the later evaluation usually must be done by the same evaluator, unless listed exceptions apply.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4067. If the jurisdiction of the appeals board is invoked pursuant to Section 5803 upon the grounds that the effects of the injury have recurred, increased, diminished, or terminated, a formal medical evaluation shall be obtained pursuant to this article. When an agreed medical evaluator or a qualified medical evaluator selected by an unrepresented employee from a three-member panel has previously made a formal medical evaluation of the same or similar issues, the subsequent or additional formal medical evaluation shall be conducted by the same agreed medical evaluator or qualified medical evaluator, unless the workers’ compensation judge has made a finding that he or she did not rely on the prior evaluator’s formal medical evaluation, any party contested the original medical evaluation by filing an application for adjudication, the unrepresented employee hired an attorney and selected a qualified medical evaluator to conduct another evaluation pursuant to subdivision (b) of Section 4064, or the prior evaluator is no longer qualified or readily available to prepare a formal medical evaluation, in which case Sections 4061 or 4062, as the case may be, shall apply as if there had been no prior formal medical evaluation. (Amended by Stats. 2002, Ch. 6, Sec. 56. Effective January 1, 2003.)
  185. 4067.5.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    This article applies to injuries occurring on or after January 1, 1991.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4067.5. This article shall become operative for injuries occurring on and after January 1, 1991. (Amended (as added by Stats. 1989, Ch. 892) by Stats. 1990, Ch. 1550, Sec. 28. Note: This section provides for delayed operation of Article 2, commencing with Section 4060.)
  186. 4068.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. )

    Verify source ↗

    The appeals board must notify the administrative director in writing if a treating physician’s report appears conjectural, unsupported by adequate evidence, or biased. If the administrative director believes reports show a pattern of unsupported opinions, the director must notify the physician’s licensing body in writing.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 7. Medical Examinations [4050 - 4068] ( Chapter 7 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Determination of Medical Issues [4060 - 4068] ( Article 2 added by Stats. 1989, Ch. 892, Sec. 28. ) ## 4068. (a) Upon determining that a treating physician’s report contains opinions that are the result of conjecture, are not supported by adequate evidence, or that indicate bias, the appeals board shall so notify the administrative director in writing in a manner he or she has specified. (b) If the administrative director believes that any treating physician’s reports show a pattern of unsupported opinions, he or she shall notify in writing the physician’s applicable licensing body of his or her findings. (Amended by Stats. 2003, Ch. 639, Sec. 22. Effective January 1, 2004.)
  187. 407.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Investments or selling stock or a business interest cannot be used or advertised as part of the consideration for employment.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 407. Investments and the sale of stock or an interest in a business in connection with the securing of a position are illegal as against the public policy of the State and shall not be advertised or held out in any way as a part of the consideration for any employment. (Enacted by Stats. 1937, Ch. 90.)
  188. 408.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    A person, agent, or officer who violates this article (other than Section 405) commits a misdemeanor and may be fined or imprisoned, or both.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 408. Any person or agent or officer thereof, who violates any provision of this article, except the provisions of Section 405, is guilty of a misdemeanor, punishable by a fine of not less than fifty dollars ($50) and not exceeding one thousand dollars ($1,000), or imprisonment for not exceeding six months, or both. (Amended by Stats. 1983, Ch. 1092, Sec. 191. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)
  189. 409.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    Fines collected under this article must be paid into the State treasury and credited to the general fund.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 409. All fines imposed and collected under this article shall be paid into the State treasury and credited to the general fund. (Enacted by Stats. 1937, Ch. 90.)
  190. 410.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    The Labor Commissioner must enforce this article.

    ## Labor Code - LAB ## DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.8] ( Division 2 enacted by Stats. 1937, Ch. 90. ) ## PART 1. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 3. Privileges and Perquisites [350 - 452] ( Chapter 3 enacted by Stats. 1937, Ch. 90. ) ## ARTICLE 2. Bonds and Photographs [400 - 410] ( Article 2 enacted by Stats. 1937, Ch. 90. ) ## 410. The Labor Commissioner shall enforce this article. (Enacted by Stats. 1937, Ch. 90.)
  191. 4150.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    An employer and a covered worker may jointly elect to come under this division’s compensation provisions if the worker is not included in the definition of employee or is otherwise not entitled to compensation under the division.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4150. When an employer has in his employment any person not included within the term “employee” as defined by Article 2 of Chapter 2 of Part 1 of this division or a person not entitled to compensation under this division, such employer and such person employed by him may, by their joint election, come under the compensation provisions of this division in the manner hereinafter provided. (Enacted by Stats. 1937, Ch. 90.)
  192. 4151.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

    Verify source ↗

    An employer elects to be subject to compensation liability either by buying insurance or by filing a statement with the administrative director accepting the division’s compensation provisions.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4151. Election on the part of the employer shall be made in one of the following ways: (a) By insuring against liability for compensation, in which case he is deemed, as to all persons employed by him and covered by insurance, to have so elected during the period such insurance remains in force. (b) By filing with the administrative director a statement to the effect that he accepts the compensation provisions of this division. (Amended by Stats. 1965, Ch. 1513.)
  193. 4152.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

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    A filed statement makes the person subject to the chapter’s compensation provisions for one year, and then renews for successive one-year terms unless the person files a withdrawal notice at least 60 days before the year ends.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4152. The statement, when filed, shall operate, within the meaning of Chapter 3 (commencing with Section 3600), to subject him or her to the compensation provisions thereof for the term of one year from the date of filing. Thereafter, without further act on his or her part, he or she shall be so subject for successive terms of one year each, unless at least 60 days prior to the expiration of such first or succeeding year, he or she files with the administrative director a notice that he or she withdraws his or her election. (Amended by Stats. 1982, Ch. 454, Sec. 136.)
  194. 4153.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

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    A statement of acceptance includes people whose work is casual and outside the employer’s trade, business, profession, or occupation, unless they are expressly excluded.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4153. Such statement of acceptance includes persons whose employment is both casual and not in the course of the trade, business, profession, or occupation of the employer, unless expressly excluded therefrom. (Enacted by Stats. 1937, Ch. 90.)
  195. 4154.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

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    If an employer makes the required election, workers may be treated as having accepted the compensation provisions unless they give written notice that they do not want to be covered.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4154. Where any employer has made an election in either of the modes above prescribed, any person in his service is deemed to have accepted the compensation provisions of this division if, at the time of the injury for which liability is claimed: (a) Such employer is subject to the compensation provisions of this division and; (b) Such person in his service has not, either upon entering into the employment, or within five days after the filing of an election by the employer, given to such employer notice in writing that he elects not to be subject to the compensation provisions of this division. In case of such acceptance, the person employed becomes subject to the compensation provisions at the time of the filing of the election or entry in the employment. (Enacted by Stats. 1937, Ch. 90.)
  196. 4155.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

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    The State, counties, cities, districts, public agencies, and state institutions are presumed to have elected coverage under this division for employments otherwise excluded.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4155. The State and each county, city, district, and public agency thereof and all State institutions are conclusively presumed to have elected to come within the provisions of this division as to all employments otherwise excluded from this division. (Enacted by Stats. 1937, Ch. 90.)
  197. 4156.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

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    An employer is exempt from compensation liability for injury or death of certain excluded persons if the employer had already elected coverage under Section 4151 by buying or renewing the required insurance policy; the section also allows employers to still provide compensation under the chapter.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4156. Liability for compensation does not attach to any employer of a person excluded by paragraph (8) of subdivision (a) of Section 3352 from the definition of “employee” for an injury to or the death of a person so excluded which occurs on or after the effective date of this section if the employer elected to come under the compensation provisions of this division pursuant to subdivision (a) of Section 4151 prior to the effective date of this section by purchasing or renewing a policy providing comprehensive personal liability insurance containing a provision for coverage against liability for the payment of compensation, as defined in Section 3207 of the Labor Code, to any person defined as an employee by subdivision (d) of Section 3351 of the Labor Code, however, this section does not prohibit an employer from providing compensation pursuant to the provisions of this chapter. (Amended by Stats. 2017, Ch. 770, Sec. 7. (SB 189) Effective January 1, 2018.)
  198. 4157.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. )

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    If an employer elects to cover certain newspaper, magazine, or periodical vendors or delivery workers under workers’ compensation, that election does not change their status as independent contractors for other purposes.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 8. Election to Be Subject to Compensation Liability [4150 - 4157] ( Chapter 8 enacted by Stats. 1937, Ch. 90. ) ## 4157. Where any employer has made an election pursuant to this chapter to include under the compensation provisions of this division an independent contractor engaged in vending, selling, offering for sale, or delivering directly to the public any newspaper, magazine, or periodical, the status of such person as an independent contractor for all other purposes shall not be affected by such election. (Added by Stats. 1978, Ch. 672.)
  199. 4201.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 9. Economic Opportunity Programs [4201 - 4229] ( Chapter 9 added by Stats. 1965, Ch. 1685. ) ## ARTICLE 1. General Provisions [4201 - 4209] ( Article 1 added by Stats. 1965, Ch. 1685. )

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    This chapter is intended to apply to all enrollees in economic opportunity programs, including work training or work study programs funded or authorized under Public Law 88-452.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 9. Economic Opportunity Programs [4201 - 4229] ( Chapter 9 added by Stats. 1965, Ch. 1685. ) ## ARTICLE 1. General Provisions [4201 - 4209] ( Article 1 added by Stats. 1965, Ch. 1685. ) ## 4201. It is the intent of this chapter to apply to all enrollees in economic opportunity programs, including, but not limited to, work training or work study authorized by or financed in whole or in part through provisions of Public Law 88-452 (Economic Opportunity Act of 1964). (Added by Stats. 1965, Ch. 1685.)
  200. 4202.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 9. Economic Opportunity Programs [4201 - 4229] ( Chapter 9 added by Stats. 1965, Ch. 1685. ) ## ARTICLE 1. General Provisions [4201 - 4209] ( Article 1 added by Stats. 1965, Ch. 1685. )

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    This section defines “Economic Opportunity Program” as a program adopted under Public Law 88-452, including work training and work study.

    ## Labor Code - LAB ## DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] ( Heading of Division 4 amended by Stats. 1979, Ch. 373. ) ## PART 1. SCOPE AND OPERATION [3200 - 4418] ( Part 1 enacted by Stats. 1937, Ch. 90. ) ## CHAPTER 9. Economic Opportunity Programs [4201 - 4229] ( Chapter 9 added by Stats. 1965, Ch. 1685. ) ## ARTICLE 1. General Provisions [4201 - 4209] ( Article 1 added by Stats. 1965, Ch. 1685. ) ## 4202. “Economic Opportunity Program” means any program adopted pursuant to Public Law 88-452, including, but not limited to, work training and work study. (Added by Stats. 1965, Ch. 1685.)

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