California court mulls whether employers must offer seating
Recent Cases
California's Supreme Court is set to clarify the state's rules for determining when employers must provide workers with a place to sit.
The court's opinion, expected Monday, stems from lawsuits brought by cashiers at the CVS drugstore chain and tellers at Chase Bank who said they were wrongly not provided with seats while working. The companies face millions of dollars in potential penalties depending on the California Supreme Court's interpretation of the rules. The court's opinion would affect other similar cases in the state.
Employers in California must provide employees with "suitable seats" when the nature of the employees' work reasonably permits the use of seats.
The CVS and Chase Bank lawsuits are now before the 9th U.S. Circuit Court of Appeals. That court asked the California Supreme Court to determine whether each task employees perform must be evaluated to determine whether it qualifies for a seat. The 9th Circuit also asked whether the employer's judgment about whether the employee should stand and the physical layout of the workplace must be taken into consideration.
CVS and Chase Bank say the seat rules require a holistic approach that determines the nature of employees' work by considering the entire range of tasks they perform, according to the 9th Circuit.
In CVS' case, cashiers also stock shelves and perform other tasks that require them to stand. The companies also say the employees' job descriptions, the layout of the workplace and the business' judgment about whether employees should stand must be considered, according to the 9th Circuit.
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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.