Calif high court hears debate over worker breaks
Headline Legal News
The California Supreme Court heard oral arguments Tuesday in a high-interest case contending restaurant managers must order meal and rest breaks for tens of thousands of workers rather than leave compliance to their discretion.
The case was initially filed eight years ago against Brinker International, the parent company of Chili's and other eateries, by chain restaurant workers complaining of missed breaks in violation of California labor law.
The case has generated immense interest among labor-law lawyers and a variety of industries grappling with defining responsibilities for meal and rest periods.
Lawyers for the workers argue that not ordering the breaks is a passive way to take advantage of workers who don't want to leave colleagues at busy times.
Brinker's attorney countered that requiring businesses to control the breaks of workers is unmanageable and that taking such breaks should be left to the discretion of employees.
The court's decision is due in 90 days, with the resolution possibly worth millions of dollars to lawyers and companies enmeshed in class-action lawsuits hinging on the issue.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.