HNW'S BRIEF WORK COMP LEGAL UPDATE

CA APPEALS COURT SAVES PROPOSITION 22

Effective 1/1/2020 the rules allowing for independent contractors in California became even stricter with application of the "ABC Test" pursuant to AB-5. In response to AB-5, the state's voters in November 2020 approved Proposition 22 which allowed app-based ride-hailing and delivery companies like Lyft, Uber and DoorDash to classify their workers as independent workers. However, in 2021 an Alameda Superior Court judge ruled that Proposition 22 infringed upon the legislature's authority under the California Constitution to regulate workers' compensation, and therefore was invalid. Notwithstanding that decision, the law remained in force pending an appeal by the gig-based industries behind Prop 22.

In a split decision, the CA Court of Appeal 1st District has just overturned the lower Superior Court decision and ruled that Prop 22 does not usurp the legislature's authority to regulate workers' compensation; however, the Court did strike down as unlawful the provisions that prevented the drivers' rights to unionize.

[COMMENT: Despite the anti-unionization provisions being declared unlawful, the transportation unions will undoubtedly file an appeal to the CA Supreme Court in the hope of eradicating all provisions of Proposition 22.]

COMMERCIAL TRAVEL DOCTRINE

In Great Divide Insurance Co. v. WCAB (2022) 88 CCC 43 a San Francisco based Bayview Environmental accepted a project in Los Angeles County. During the project the company paid for employee housing in LA, and was aware the employees occasionally travelled to SF on the weekends to visit family. On one of those weekend trips, employee Edil Banegas was killed in a traffic accident. The family filed a death claim which was denied as not being work related.

The trial judge held the injury not aoe/coe because the trip as strictly personal in nature. The WCAB overturned the decision under the "commercial traveler doctrine" which provides that an employee's injury is compensable if occurred during an activity that would reasonably be expected incidental to the required business travel. The activity itself need not be directly work-related.

[COMMENT: Once an employee is deemed a commercial traveler, great latitude is given as to what constitutes a reasonably expected leisure activity.]

DWC EDUCATIONAL CONFERENCE

The 30th Annual DWC Educational Conference will be in-person on March 23-24, 2023 in Los Angeles at the Airport Marriott. The HEWS Firm has been an annual sponsor of this event, which is one of the premier workers' compensation conferences in California.

HEWS NEWS:

HEWS President H. Neal Wells IV will be speaking on Monday May 15, 2023 at the CSIA 2023 Annual Conference at the Disneyland Hotel in Anaheim. Wells and co-panelist Eddy Canavan of Alta Claims Services will be talking on "Looking For Cost Savings in Work Comp Litigation", moderated by Joan Vincenz of United Airlines.

March Employee Anniversaries: Firm Administrator Violet Farley (35 years); Calabasas Office Manager Gina Avila (20 years); San Bernardino Office Manager Tiffany Kelly (14 years), and legal asst. Angela Richter (1 year).

Main Contributor: H. Neal Wells IV

Editorial Staff: Lynn P. Peterson

and Ari L. Emurian

HEW&S OFFICES: COVERING ALL OF CALIFORNIA

San Bernardino (909) 890-0403 (sbr@hmplc.com)
Orange County (949) 250-1216 (ana@hmplc.com)
Glendale (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.