WORK COMP LEGAL UPDATE

COLDIRON HOLDING REINFORCED

DEFENSE MUST DIVULGE NAMES OF ALL ENTITIES

RESPONSIBLE FOR FUNDING WORK COMP BENEFITS

In Coldiron v. Compuware (2002) 67 CCC 289 the Appeals Board held that defendants must disclose not only the name of the third party administrator, but also whether the employer is self-insured or the name of the insurance company providing the workers' compensation coverage. Coldiron was codified in 8 CCR 10390 (c) which states the defense must identify the insurer and/or employer as the party or parties, and not just a third party administrator.

In Difusco v. Hands On Spa (2025) the applicant's home health care payments were delayed without explanation. The defense only confirmed the name of the insurance carrier and failed to divulge the employer had a large deductible and was therefore responsible for paying the benefits which were were being delayed. Trial judge found no requirement under 8 CCR 10390 to divulge the deductible information; the applicant appealed.

The Appeals Board in an En Banc decision determined that 8 CCR 10390 did not restrict the previous ruling in Coldiron and read together they require the defense to divulge the name of all entities liable for the payment of workers' compensation benefits on a case, which includes indentifying an employer with a large deductible.

[COMMENT: Interesting question arises as to if or when an excess carrier should be identified since in most cases the excess carrier never becomes responsible for providing any payments.]

SEVERAL WORK COMP BILLS SIGNED INTO LAW BY GOVERNOR

This month Governor Newsom signed into law several work comp bills which include:

SB 779: Provides a minimum fine of $1,500 against contractors who falsely claim to be exempt from workers' compensation insurance.

SB 291: Requires the CSLB in its annual report to discuss actions taken against illegally uninsured contractors.

SB 230: Entitles firefighters at commercial airports the same presumptions as other firefighters as to heart trouble, hernias, pneumonia, tuberculosis, etc. Effective for injuries after January 1, 2026.

AB 1125: Extends the heart trouble presumption to peace officers for Department of State Hospitals and Department of Corrections.

AB 1293: Requires the DWC to develop templates for communicating with QMEs and for QME reports. Note that the templates are not intended to restrict information, and a report based upon a template does not automatically result in the report being considered substantial evidence.

[COMMENT: Governor Newsom vetoed AB 1329 which would have created some new restrictions to getting SIBTF funds, which was deemed needed at a time in which the SIBTF is underfunded. Newsom has ordered the DWC to prepare a reform plan to address the issues.]

PROVIDER SUSPENSION UPHELD AFTER CHARGES DISMISSED

Dr. Duke Ahn pled guilty in May 2019 to accepting kickbacks in violation of the Business & Profession Code. Three years later the charges were dismissed after completing probation and paying fines, at which point Dr. Ahn demanded the DWC vacate his suspension from the workers' compensation system due to the admitted kickback violation. The DWC refused.

The Court of Appeal held that a statutory basis for a suspension by the DWC is a guilty plea, which occurred in this case and therefore the suspension remains in effect. (Ahn v. Parisotto).

[COMMENT: Noted the kickback charges resulting in the DWC suspension were not legally overturned which could have resulted in a different outcome. Instead, the charges were administratively dismissed as part of a plea bargain arrangement.]

CAL SCHOOLS JPA

The California Schools Joint Powers Authority is having its annual convention on November 2-4, 2025 at Disney's Grand Californian Hotel. Our law firm is a major sponsor of,and exhibitor at, the event. Attendees to include H. Neal Wells IV, Brandon R. Lewis, and our firm's in-house legal expert on school related cases, Regina Rabanal.

HEWS NEWS

October HEWS Work Anniversaries:

Managing Shareholders H. Neal Wells IV (36 years) and Tina Sareen (28 years), Associate Attorney Fara Karim (11 years) and legal assistants Riah Siegman (21 years), Elizabeth Aguirre (3 years), Gabriel Aguirre (2 years) and Angelina Serna (1 year),

_______________________________

Main Contributor: H. Neal Wells IV hnw@hmplc.com

Editorial Staff: Lynn P. Peterson

lpp@hmplc.com

HEW&S OFFICES: COVERING ALL OF CALIFORNIA

San Bernardino (909) 890-0403 (sbr@hmplc.com)
Santa Ana (949) 250-1216 (ana@hmplc.com)
Burbank (818) 265-0940 (cxr@hmplc.com)
Calabasas (818) 348-8366 (cls@hmplc.com)

www.hmplc.com

The above is for informational purposes only, and not intended to constitute legal advice.