Vol IX No. 4
'
APRIL 2003
COMPENSATION
NEWS
MONTHLY REPORT
CIGA DOES NOT HAVE LIABILITY
FOR TEMPORARY EMPLOYEES
"general" employer gives up control
to the employer borrowing the
employee a "special employment
relationship exists. Where you have
general and special employment the
applicant can collect from either or
both employers. Liability is joint and
several.
Under Labor Code section 11663 the
insurer of the general employer is
liable unless the applicant is on the
special employer's payroll.
However, here Remedy Temp was
insured by Reliance, in liquidation.
CIGA is not an insurance company.
Therefore, CIGA was dismissed after
the Board looked at Labor Code
sections 3602 (d), and Insurance Code
1063.1(c)(9) and 11663.
There is currently a stay of
proceedings pending appeal, however,
applicant's can petition for relief from
the stay.
Home Assurance (AHA). Remedy
Temp had a policy covering the
temporary employees with Reliance
National Indemnity Company
(Reliance). Reliance is now insolvent.
Reliance's "covered claims" are
adjusted by California Insurance
Guaranty Association.
The applicant was on Remedy Temp's
payroll at the time of injury. There
was a policy between Remedy Temp
and Reliance. Jacuzzi was listed as an
"alternate employer" under that policy.
Therefore, prior to liquidation
Reliance would have had liability.
The case came up for trial and the
Workers' Compensation Judge (WCJ)
dismissed CIGA as a parry defendant.
The WCJ made five finding. The most
significant of which was that where
there is "other coverage" CIGA will be
dismissed under Labor Code section
1063.1(c)(9). The WCJ rationalized
this was not a covered claim that
would be covered.
Three petitions for reconsideration
were filed which resulted in this
decision.
The Workers' Compensation Appeals
Board (Board) indicated that when the
This newsletter deals with an
Opinion and Decision After
Reconsideration (EN BANC). It is
important in that it deals with 540
consolidated cases.
Miceli v.
Jacuzzi., Remedy
Temp...
Jacuzzi had a contract with Remedy
Temp, an employee staffing agency,
to supply workers to Jacuzzi. The
applicant was on the payroll of
Remedy Temp, but working at a
Jacuzzi job site when he got injured.
Remedy Temp was considered the
general employer and Jacuzzi the
special employer.
Jacuzzi was covered for workers'
compensation insurance by
American
Firm: Samuelsen, Gonzalez,
Valenzuela, Brown
Editor: Harvey Brown
Address. 441 Old Newport Blvd 105
Newport Beach, CA 92663
Phone: 949 574-7835
CONTENTS
Miceli v. Jacuzzi., Remedy Temp.......1
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