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L.A. County Health Initiative to Pay $1.3M to Resolve HIPAA Violations

The Local Initiative Health Authority for Los Angeles County (L.A. Care) is a public agency that provides health insurance for low-income individuals in Los Angeles County through four health coverage programs including Medi-Cal.

Back in March 2022 LA Care was fined $55 million by the California Department of Managed Health Care and the California Department of Health Care Services for “deep-rooted, systemic failures that threaten the health and safety of its members.” The departments said their investigations were triggered by a September 2020 Los Angeles Times article that identified multiple county residents who died of their conditions following extensive delays for treatment.

And now – slightly more that one year later – the U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) just announced a settlement of potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Rules with L.A. Care, the nation’s largest publicly operated health plan that provides health care benefits and coverage through state, federal, and commercial programs.

OCR enforces the HIPAA Privacy, Security, and Breach Notification Rules that set the requirements that HIPAA-regulated entities must follow to protect the privacy and security of protected health information (PHI)

The settlement concludes two OCR investigations initiated from a large breach report and a media article regarding a separate security incident.  Under the agreement, LA Care agreed to pay $1,300,000 and to implement a corrective action plan, discussed in further detail below, which identifies steps LA Care will take to resolve these potential violations of the HIPAA Security Rule and protect the security of electronic protected health information (ePHI).

“Breaches of protected health information by a HIPAA-regulated entity often reveal systemic, noncompliance with the HIPAA Rules,” said OCR Director Melanie Fontes Rainer.  “HIPAA-regulated entities need to be proactive in ensuring their compliance with the HIPAA Rules, and not wait for OCR to reveal long-standing HIPAA deficiencies.  Entities such as LA Care must protect the health information of its insureds while providing health care for the most vulnerable residents of Los Angeles County through its coverage, which includes Medicaid, Medicare, and Affordable Care Act health plans.”

The potential violations in this case included:

– – Failure to conduct an accurate and thorough risk analysis to determine risks and vulnerabilities to ePHI across the organization,
– – Failure to implement security measures sufficient to reduce risks and vulnerabilities to ePHI to a reasonable and appropriate level,
– – Failure to implement sufficient procedures to regularly review records of information system activity,
– – Failure to perform a periodic technical and nontechnical evaluation in response to environmental or operational changes affecting the security of ePHI, and
– – Failure to implement hardware, software, and/or procedural mechanisms that record and examine activity in information systems that contain or use ePHI.

OCR’s investigation found evidence of potential noncompliance with the HIPAA Privacy and Security Rules across LA Care’s organization, a serious concern given the size of this covered entity. In addition to the monetary settlement, LA Care has agreed to take the following steps under a comprehensive corrective action plan that will be monitored for three years by OCR to ensure compliance with HIPAA:

– – Conduct an accurate and thorough risk analysis to determine risks and vulnerabilities to electronic patient/system data across the organization.
– – Develop and implement a risk management plan to address identified risks and vulnerabilities to the confidentiality, integrity, and availability of ePHI.
– – Develop, implement, and distribute policies and procedures for a risk analysis and risk management plan.
– – Report to HHS when it conducts an evaluation due to an environmental and operational change that affects the security of ePHI in LA Care’s possession or control.
– – Report to HHS within thirty (30) days when workforce members fail to comply with the HIPAA Rules.

The resolution agreement and corrective action plan may be found on the HHS website

Firefighter Death Count From Toxic Exposure Increasing 22 Years After 9/11

A heartbreaking milestone haunts this year’s 9/11 anniversary. The NY Post and other media report that 341 FDNY members have now died of Ground Zero-related illnesses, nearly equaling the death toll for other fire fighters that perished in the 2001 terror attack at Ground Zero.

Twenty-two years ago the loss of 343 firefighters was an unimaginable number and sadly the day we pass that milestone is quickly approaching,” Andrew Ansbro, president of the FDNY Uniformed Firefighters Association, said at a news conference Friday. “It is inevitable.”

We’ve attended 40 or so funerals this year for the members that we lost and we know it’s not going to end. So for us it’s every day or every week – but for the general public we have this press conference to remind everyone that it is ongoing and that funding is still needed,” he said.

James Brosi, president of the FDNY Uniformed Fire Officers Association, warned that “we may exceed” the immediate 9/11 death toll “even before the anniversary.” In February, Brosi said he lost his own father, Joseph Brosi, who worked at Engine 88 in the Bronx and battled both lung and bladder cancers after 9/11.

“In the early anniversaries that immediately followed 9/11, our primary focus was on the people we had lost because that was our greatest concern,” Brosi said. “And as the years passed, and as the latency period passed for those illnesses that will now affect us, our concern is shifted not only with the people we lost, but the people we’ve lost since, and the people that are now struggling.”

Exposure to the enormous cloud of toxins, dust and debris that resulted from the terrorist attack on the World Trade Center in 2001 has been linked to an increased risk of cardiovascular disease among first-responder firefighters, according to a recent study published in the JAMA Network.

In this cohort study of 9796 firefighters, age-adjusted incident rates of cardiovascular disease were higher for firefighters with greater World Trade Center exposure. Both acute World Trade Center as well as repeated exposure during 6 or more months at the World Trade Center site appeared to be associated with long-term elevated cardiovascular disease risk.

“The findings of the study suggest a significant association between greater WTC exposure and long-term CVD risk. The findings appear to reinforce the importance of long-term monitoring of the health of survivors of disasters.”

Among the firefighters in the study, “the ones with the greatest exposure – those present in the morning of 9/11 – had a higher risk than those who showed up later in the week,” said Dr. David Prezant, chief medical officer for the Fire Department of the City of New York and a professor at the Albert Einstein College of Medicine, who was senior author of the new study.

The exposure [among first responders] was really dramatic,explains Dr. Michael Crane, a physician and environmental medicine professor at the Icahn School of Medicine at Mount Sinai, who also is the medical director of a clinic that delivers care to 9/11 first responders. “There were all kinds of carcinogens and combustion products,” Crane says.

The contents of two skyscrapers including concrete, pipes, computers, were pulverized into burning ash laden with lead and other heavy metals. The plume of smoke that could be seen from space. “It was a real witch’s brew,” Crane says.

And another study published in JNCI Cancer Specturm used a study population that consisted of 28 729 members of the General Responder Cohort. A restricted analyses identified 1072 cancers in 999 responders, with elevations in cancer incidence for all cancer sites combined  

VR Technology Successfully Used to Train Surgeons and Treat Patients

While consumer VR remains a niche product and a massive money-burning venture for Meta CEO Mark Zuckerberg, CNBC reports that the technology is proving to be valuable in certain corners of health care. Kettering Health Dayton is one of dozens of health systems in the U.S. working with emerging technologies like VR as one tool for helping doctors to train on and treat patients.

Just days before assisting in his first major shoulder-replacement surgery last year, Dr. Jake Shine strapped on a virtual reality headset and got to work. As a third-year orthopedics resident at Kettering Health Dayton in Ohio, Shine was standing in the medical center’s designated VR lab with his attending physician, who would oversee the procedure.

Both doctors were wearing Meta Quest 2 headsets as they walked through a 3D simulation of the surgery. The procedure, called a reverse total shoulder arthroplasty, can last around two hours and requires surgeons to carefully navigate around neurovascular structures and the lungs.

For its orthopedics program, Kettering Health Dayton uses software developed by PrecisionOS, a company that builds VR modules for training surgeons, medical residents and medical device representatives. PrecisionOS co-founder and CEO, Dr. Danny Goel, said the company has nearly 80 customers across the globe.

Orthopedics residents at the University of Rochester also use PrecisionOS. Dr. Richard Miller, a retired professor at the university, said the software is “sophisticated” and “very realistic,” especially as a way to learn the steps of a procedure. He finds it so compelling that he’s been actively helping the orthopedics department implement the technology even though he retired three years ago.

Jan Herzhoff, Elsevier Health’s president, is quoted as saying that her company’s Complete HeartX mixed reality offering ”will help prepare medical students for clinical practice by using hyper-realistic 3D models and animations that help them understand and visualize medical issues, such as ventricular fibrillation, and how to apply their knowledge with patients.”

To date, one of the primary applications of VR in health care has been targeted at pain treatment.

“It’s very hard to keep track of pain when you’re in a fantastical cyberdelic world,” said Dr. Brennan Spiegel, director of health services research at Cedars-Sinai in Los Angeles. Spiegel said that when someone is injured, there is both a physical and an emotional component to their pain. Those signals are sent to two different parts of the brain, and VR can serve to tamp down the signals in both regions. “It’s training people how to modify their spotlight of attention so they can swing it away from the painful experiences,” Spiegel said. “Not just the physical, but the emotional experiences.”

Spiegel said Cedars-Sinai is preparing to launch a virtual platform to help people with gastrointestinal issues like Crohn’s disease, celiac disease or acid reflux, as well as others for anxiety, addiction and perimenopausal health.

The technology has also attracted the attention of the U.S. Department of Veterans Affairs, which is using extended reality at more than 160 facilities to help patients with pain management, behavioral therapy and both physical and cognitive rehabilitation. Caitlin Rawlins, the immersive program manager at the VA, said there are currently more than 40 separate use cases for the technology across the agency’s different sites. The VA first introduced extended reality in a limited capacity around 2015, and has found more opportunities to put it to use as the technology has improved.

“I’ve seen it change a whole lot,” Rawlins told CNBC in an interview. “The first virtual reality headset that I used was this big clunky headset that had all these wires it had to be connected to a laptop to function.”

Rawlins said what drew her to extended reality was seeing the immediate response from patients. She recalled the first time she watched a patient use VR. He was a man in his 80s who had just undergone knee replacement surgery. The pain was so severe that opioids didn’t help, Rawlins said.

After mere minutes in VR, he told Rawlins he couldn’t feel the pain in his leg anymore.

″Just using that for a simple 30-minute session can mean the difference between excruciating pain, unable to do the exercises and the ambulation that they need to, to actually get up and move and get ready to go home,” she said.

Kaiser Resolves Illegal Disposal of Medical Waste Claim for $49M

The California Attorney General in partnership with six district attorneys, announced a settlement with Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals resolving allegations that the healthcare provider unlawfully disposed of hazardous waste, medical waste, and protected health information at Kaiser facilities statewide. As part of the settlement, Kaiser will be liable for a total of $49 million and be required to take significant steps to prevent future unlawful disposals.

The settlement is the result of undercover inspections conducted by the district attorneys’ offices of dumpsters from 16 different Kaiser facilities. During those inspections, the district attorneys’ offices reviewed the contents of unsecured dumpsters destined for disposal at publicly accessible landfills, finding hundreds of items of hazardous and medical waste (aerosols, cleansers, sanitizers, batteries, electronic wastes, syringes, medical tubing with body fluids, and pharmaceuticals) and over 10,000 paper records containing the information of over 7,700 patients.

The California Department of Justice subsequently joined the district attorneys and expanded the investigation of Kaiser’s disposal practices further throughout the state. In response to this joint law enforcement investigation, Kaiser immediately hired a third-party consultant and conducted over 1,100 trash audits at its facilities in an effort to improve compliance. Kaiser also modified its operating procedures to improve its handling, storage, and disposal of waste.    

Kaiser is headquartered in Oakland, California and operates over 700 facilities statewide, making it the largest healthcare provider in California. Kaiser provides healthcare to approximately 8.8 million Californians, as well as members of the public who seek emergency care from Kaiser facilities. In announcing today’s settlement, Attorney General Bonta is joined by the district attorneys of Alameda, San Bernardino, San Francisco, San Joaquin, San Mateo, and Yolo counties.

As part of the settlement, Kaiser:

– – Will pay $47.250 million. That amount includes $37,513,000 in civil penalties; $4,832,000 in attorneys’ fees and costs; and $4,905,000 for supplemental environmental projects, primarily environmental prosecutor training.
– – Must pay an additional $1.75 million in civil penalties if, within 5 years of the entry of the final judgment, Kaiser has not spent $3.5 million at its California facilities to implement enhanced environmental compliance measures to ensure compliance with relevant provisions of the law that are alleged to have been violated.
– – Must retain an independent third-party auditor – approved by the Attorney General’s Office and the district attorneys – who will: perform no less than 520 trash compactor audits at Kaiser’s California facilities to help ensure that regulated wastes (including items containing protected health information) are not unlawfully disposed of; and conduct at least 40 programmatic field audits each year, for a period of five years after entry of the final judgment, to evaluate Kaiser’s compliance with policies and procedures designed to ensure compliance with applicable laws related to hazardous waste, medical waste, and protected health information.

Kaiser’s unlawful disposals are alleged to violate California’s Hazardous Waste Control Law, Medical Waste Management Act, Confidentiality of Medical Information Act, Customer Records Law, and Unfair Competition Law. The disposals are also alleged to violate the federal Health Insurance Portability and Accountability Act of 1996, known as HIPAA.

In 2014, the California Department of Justice filed a lawsuit against Kaiser after it delayed notifying its employees about an unencrypted USB drive that was discovered at a Santa Cruz thrift store. The USB drive contained over 20,000 employee records.

Kaiser paid $150,000 in penalties and attorneys’ fees, and agreed to comply with California’s data breach notification law in the future, provide notification of any future breach on a rolling basis, and implement additional training regarding the sensitive nature of employee records. In addition, Kaiser has been the subject of prior enforcement actions by local prosecutors for mismanagement of regulated wastes.

Ballot Measure to Make $36B Managed Care Organization Tax Permanent

The Coalition to Protect Access to Carewhat Politico reports as “an amalgam of monied health care interests that includes representatives for doctors, hospitals, health plans and other key players,”-  has filed paperwork to put a November 2024 ballot measure before voters, that would make permanent a tax on health plans and funnel the revenue to certain parts of the health safety net.

The coalition has until March or April to collect 546,651 signatures to qualify for the November ballot, and they’re already a few weeks behind other initiatives.

The coalition that secured a $36 billion tax deal to pump more money into Medi-Cal last June, that followed months of private negotiations between bitter industry rivals, state lawmakers and the governor’s office.wants to make it harder for future administrations to spend that revenue elsewhere.

The battle surrounds the California Managed Care Organization (MCO) tax. An MCO provider tax is a federally allowable Medicaid funding mechanism whereby a taxis imposed by states on health care services where the burden of the tax falls mostly on providers, such as a tax on managed care plans per members served. Provider taxes have become an integral source of financing for Medicaid nationwide.

In California the MCO tax has existed for nearly 20 years and been enacted by both Democratic and Republican governors. Recently AB 115 (Chapter 348, Statutes of 2019) and SB 78 (Chapter 38, Statutes of 2019) authorized a successor MCO tax from July 1, 2019, through December 31, 2022, similar to the 2016 MCO Tax. SB 78 (Chapter 33, Statutes of 2013) extended the MCO tax sunset date from June 30, 2011, to June 30, 2013.

California “taxes” MCOs, and uses the revenue to draw down federal matching funds to support the Medi-Cal program. Specifically, California:
– 1.Imposes a tax on all managed care plans per members served in a prior year.
– – a.The tax varies for Medi-Cal managed care plans compared to non-Medi-Cal managed plans or other managed care plans as seen in proposed budgetlanguage.
– – b.The fee also has tiers based on the number of members served by the managed care plan. Some tiers have no fee and some tiers cap the number of members the fee applies to in that tier.
– 2.Runs several “tests” based on federal rules to ensure the tax structure meets all federal requirements.
– 3.Increases the rates the state pays to Medi-Cal managed care plans to account for thetax. As such, there is no net impact to Medi-Cal managed care plans.
– 4.Uses the collected funds to secure a federal match to support the Medi-Cal program,which results in a General Fund gain.

According to the article in Politico, the last three times California levied this tax on health plans, it used the money to balance the budget during economic downturns. But after the Coalition entered the negotiations earlier this year, which led to the June 2023 agreement, and for the first time, much of the revenue stayed in the health care system, especially in Medi-Cal. – in a year when the state faces a $32 billion budget deficit.

That deal raised rates for primary care, OBGYN care and specialty mental health care and set aside money to cover such costs as emergency room physicians and ambulance services. The new ballot initiative preserves those priorities and adds more, like money for community health workers, specialty dental services, prescription drugs and some clinician and dentist loan repayments.

The ballot initiative sets out a spending plan that hews fairly closely to the priorities laid out in June’s iteration of the tax, which expires in 2026. It assumes that the tax will bring in around $4.3 billion when it’s renewed in 2027.

“We need to make sure that this is permanent and will last beyond the next several years and become something that providers and patients can count on for decades to come,” said Dustin Corcoran, CEO of the California Medical Association and chair of the coalition behind the initiative. “We don’t know what future administrations may or may not do.”

The ballot measure would make the MCO tax that expired on December 31, 2022, and then renewed by the negotiated outcome by industry rivals in June 2023, which will now otherwise expire in 2026 permanent. Any future changes would have to be approved by voters, making it harder for the state to update how it spends the revenue. The tax will be levied on California Managed Care Organizations (MCOs) who will no doubt pass those costs on to the price of ultimately paid on behalf of participants in one of the MCO organizations.  

CMS has indicated they will be issuing new MCO Tax guidelines that will be more restrictive no later than 2026.

Recently Retired WCJ Terry Smith Returns to Floyd Skeren Lawfirm

Terry Smith, a recently retired Worker’s Compensation Judge, has returned to the law firm of Floyd Skeren Manukian Langevin as a partner its Complex Litigation Unit.

He will also be assisting retired Workers Compensation Judge David O’Brien maintain and edit his treatise California Workers’ Compensation Claims and Benefits, Online Edition, and other special projects.

Judge Smith is a Certified Specialist in California Workers’ Compensation Law and has defended insurance carriers, private employers, public agencies, self-insured employers, administrators, school districts, and transit districts. He is a trial attorney litigating special investigation cases, serious willful misconduct claims, §132(a) claims and appellate work.

Judge Smith served as a Deputy Sheriff for the County of Ventura and has worked for the Ventura District Attorney’s office. He began his workers’ compensation career 30 years ago as an adjuster and then as an attorney working at a national insurance carrier specializing in Special Investigations Unit (SIU) cases.

He has lectured to insurance company’s claims units and employers in association with the Employer’s Fraud Task Force and the Los Angeles County, San Bernardino County, Orange County and Riverside County District Attorney’s Offices.

Judge Smith has also lectured to the International Association of Special Investigation Units and the Southern California Fraud Investigators Association.

After serving as a Workers’ Compensation Judge at the Marina Del Rey Board, he now has decided to return to his prior home with Floyd Skeren at its Westlake Village office where he was formerly a Partner and Manager of the attorneys in that office.

His colleagues at that facility and in other firm offices across the state are very excited to learn of his return to his former group. He spent seventeen years as a defense lawyer with the firm before being recruited as a Workers’ Compensation Judge by the WCAB.

Judge Smith said he was very pleased to return to the group of colleagues he has known and worked with for many years, and to work with the firm’s clients, many of which he has worked in the capacity as defense lawyer.

In addition to his work with Floyd Skeren, he enjoys traveling and vacationing with his wife of 30 years. On weekends he enjoys riding his Harley Davidson Street Glide Special with the local Harley Owners Group (HOG) and the local Blue Knights® International Law Enforcement Motorcycle Club – a non-profit fraternal organization consisting of active and retired law enforcement officers who enjoy riding motorcycles.

Court Rejects Longshore Benefits for Worker Injured at Yacht Club

The Alamitos Bay Yacht Club in Long Beach hired Brian Ranger as a maintenance worker. He helped the club with its fleet by painting, cleaning, maintaining, repairing, unloading, and mooring vessels.

One day, Ranger used a hoist to lower a club boat into navigable waters. He stepped from the dock onto its bow, fell, was hurt, and applied for workers’ compensation. Then he sued the club in state court on federal claims of negligence and unseaworthiness.

The trial court sustained the club’s final demurrer to the second amended complaint. The trial court ruled there was no admiralty jurisdiction.

The California Court of Appeal affirmed the trial court decision in the published case of Ranger v. Alamitos Bay Yacht Club -B315302 (September 2023).

Congress enacted the Longshoremen’s and Harbor Workers’ Compensation Act of March 4, 1927, which established a workers’ compensation program for “any person engaged in maritime employment.” The 1972 amendments extended the coverage of the Longshore Act but created uncertainty about the boundaries of that extension.

Congress later learned the 1972 law had created “a general confusion as to whether or not the Longshore Act applies.” The rules of coverage became a prolific generator of litigation. In 1984, Congress responded by introducing a degree of clarity: Congress sharpened the Longshore Act’s focus to exclude employees who, although they happened to work on or next to navigable waters, lacked a sufficient nexus to maritime navigation and commerce.

The 1984 statute thus carved out specific employee categories, placed them beyond the coverage of the Longshore Act, and assigned these employees to the “appropriate state compensation laws.” Among the carveouts were employees working for clubs.

Which clubs? All clubs. Initially there was disagreement between the Senate and the House of Representatives about whether the Longshore Act should exclude only employees working at nonprofit clubs. (H.R.Rep. No. 98-570, 1st Sess., p. 4 (1983) (H.R.Rep. 98-570).) The Senate wanted a broader approach but the House initially favored the narrower one. The Senate’s view prevailed: the exclusion applies to all club employees and is not limited to nonprofits.

Ranger concedes that his employer is a “club,” but then asserts that federal law preempts state law in this case.However the Court of Appeal noted that “national and state interests do not clash here. Federal and state law are in accord. For employees like Ranger, both Congress and the California legislature have replaced the fault-based regime of tort with the no-fault alternative of workers’ compensation. Both bodies have preferred the virtues of speedy, predictable, and efficient compensation for occupational accident victims like Ranger.”

Ranger counters this analysis by repeatedly stressing the importance of “uniformity” of the general maritime law. In this quest, Ranger relies on Green v. Vermilion Corp. (5th Cir. 1998) 144 F.3d 332, 334–341.

The Court of Appeal responded “We respectfully but profoundly differ with Green. We therefore also part ways with Freeze v. Lost Isle Partners (2002) 96 Cal.App.4th 45, 51-52 (Freeze), which relied on Green without adding to its analysis.”

Apart from Green and Freeze, Ranger cites cases predating 1984. However, “these authorities deal with old superseded law, not the new governing law.”

In sum, California’s workers’ compensation law is Ranger’s exclusive remedy. Congress in 1984 decreed this state law aptly covers his situation. A core part of the state workers’ compensation bargain is that injured workers get speedy and predictable relief irrespective of fault. In return, workers are barred from suing their employers in tort. The trial court correctly dismissed Ranger’s tort suit against his employer.”

New Law Strengthens Prohibitions Against Employee Non-Competition Clauses

Historically, common law allowed contractual restraints on lawful business practices, so long as they were reasonable. However, in 1872, California opted to impose stricter limitations on such contractual restraints, instead opting to favor policy that would support competition in trade. This decision resulted in the enactment of Civil Code Section 1673, subsequently renumbered and moved to Business and Professions Code Section 16600.

Section 16600 states “Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” Subject to various statutory exceptions, the impact of this section is to invalidate any attempt at a noncompete agreement (or a contract in restraint of trade) that would improperly prohibit individuals from engaging in a lawful business.

There is extensive case law on this matter, but one case in particular has cemented the prohibition on noncompete clauses in California. In Edwards v. Arthur Andersen LLP, the California Supreme Court held that “[n]oncompetition agreements are invalid under section 16600 in California, even if narrowly drawn, unless they fall within the applicable statutory exceptions[.]” (Edwards v. Arthur Anderson LLP, 44 Cal. 4th 937, 955 (2008).)

On September 1, Governor Gavin Newsom signed S.B. 699, a new law that strengthens existing California law that voids contracts which restrain anyone from engaging in a lawful profession, trade, or business of any kind. The new provisions take effect on January 1, 2024.

Existing Law:

– – Provides that every contract that restrains anyone from engaging in a lawful profession, trade, or business of any kind is void, subject to limited exceptions. (Business & Professions Code Section 16600.)
– – Provides that any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her ownership interest in the business entity, or any owner of a business entity that sells specified assets or interests may agree with the buyer to refrain from carrying on a similar business within a specified geographic area in which the business is sold, or that of the business entity, division, or subsidiary has been carried on, so long as the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein. (Business and Professions Code section 16601.)
– – Defines “ownership interest” to mean a partnership interest, a membership interest, or a capital stockholder, as specified. (Business and Professions Code section 16601.)
– – Establishes the Division of Labor Standards and Enforcement, of which the state Labor Commissioner is chief, to ensure that minimum labor standards are adequately enforced. (Labor Code Sections 82 and 90.5.)

New Law

S.B. 866 aims to strengthen and clarify existing restrictions on the use of noncompete agreements in four ways. First, it strengthens California’s restraint of trade prohibitions by making it clear that any contract that is void under California’s restraint of trade law is unenforceable, regardless of where and when the contract was signed.

Second, the new law prohibits an employer or former employer from attempting to enforce a contract that is void under California’s restraint of trade law.

Third, the new law prohibits an employer from entering into a contract with an employee or prospective employee that includes a provision that is void under restraint of trade law.

Fourth, the new law provides that an employer who enters into a contract that is void under California’s restraint of trade law or attempts to enforce a contract that is void under California’s restraint of trade law commits a civil violation.

The law provides robust mechanisms for the enforcement of these provisions. The bill allows an employee, former employee, or prospective employee may bring an action to enforce these provisions for injunctive relief or the recovery of actual damages, or both. A prevailing employee, former employee, or prospective employee is also entitled to recover reasonable attorney’s fees and costs.

The California Employment Lawyers Association, was in support of SB 699, as it explained that, “although noncompete clauses have been unlawful in California since 1872, our attorneys routinely see these clauses included in employment agreements with California employees.”

Dozens of law professors from law schools across the nation provided a letter of joint support for the bill.

There was no report of any opposition to the passage of S.B. 699.

U.C. Davis awarded $1.9M Grant to Study Lethal Cancers in Firefighters

UC Davis Comprehensive Cancer Center researcher Shehnaz K. Hussain Ph.D., Sc.M. has received a $1.9 million California climate action grant to lead a study into the cancer risks facing firefighters as they battle wildfires.

The grant is funded through a partnership between the University of California and the state of California, which awarded over $80 million in research grants to help put solutions in place that directly address state climate priorities. A total of four UC Davis climate action grants were awarded.

Dr. Hussain’s research, “Exposure Assessment, Health Monitoring, and Cancer Control in Wildland Firefighters” will examine the main carcinogens and cancer risk factors for firefighters as the number of wildfires escalates with climate change.

“California’s firefighters are a climate-vulnerable group due to their heavy burden of occupational exposures related to the increased frequency and scale of wildland fires. The fires are also burning into urban areas where there are many more chemicals and other potential carcinogens that threaten the health of firefighters,” said Hussain, who is also a professor of Public Health Sciences at UC Davis.

Cancer is the leading cause of death among firefighters.

Dr. Hussain said the research will identify areas where equipment, technology, protocols, education, programs, and policy can be developed or amended to reduce exposures to carcinogens, mitigate cancer risks, and improve early detection of cancer in California’s firefighters.

One aim of this research is to capture and test carcinogenic chemicals and other compounds found in wildfire emissions. The team will also study a large group of firefighters to identify biomarkers and occupational and behavioral cancer risk factors that could be reduced in the future. Another objective is to produce stories about California firefighters dealing with cancer. Researchers plan to evaluate the ability of this peer-to-peer storytelling to enhance best practices for cancer prevention in firefighters.

Dr. Hussain will lead a team of biochemical, engineering, microbiology, environmental and occupational scientists on the research initiative. The team will include co-lead Derek Urwin, assistant adjunct professor of chemistry and biochemistry at UCLA and a career firefighter. Other members of the research team include UC Davis colleagues Sheri Belafsky, Cristina Davis, Janine LaSalle, Irva Hertz-Picciotto and Thomas Young.

The California Climate Action Seed Grants and Matching Grants will fund 38 projects that collectively involve more than 130 community, industry, tribal, and public agencies, as well as 12 University of California locations, 11 California State University campuses and two private universities.

Seed grants were awarded to 34 teams totaling $56.2 million. Four teams received matching grants totaling $26.9 million to support larger projects that could leverage additional funding from non-state sources. The $83.l million total is part of $185 million allocated by the state for UC climate initiatives advancing progress toward California’s climate goals.

CapRadio sat down with Dr. Hussain to learn a little more about her plans and how this research might help us better understand the impacts of smoke on Californians as a whole. It’s interview is available online.

WCJ Panel Reviews Case Authority to Rescind Stipulated Award for Error

Carl Aaron filed three Applications for Adjudication of Claim for injuries he alleged to have occurred while employed by Hesperia Unified School District. On May 30, 2023 the WCJ approved a stipulated settlement agreement of these claims and an Award, was issued based upon the stipulation signed and filed by both parties.

The employer subsequently filed a Petition for Reconsideration of this Award, based upon the contention that the Award should be rescinded because it is based on commutation calculations that were incorrect and both parties relied on the erroneous calculations.

There was no response to the Petition for Reconsideration filed by Mr. Aaron. The WCJ issued a Report and Recommendation on Petition for Reconsideration recommending that the Petition be denied or, in the alternative, treated as a Petition to set-aside the Award.

The WCAB dismissed the Petition as premature, and returned this matter to the trial level for consideration of the Petition as one to set aside the Award in the panel decision of Aaron v Hesperia Unified School District. -ADJ10948627-ADJ11046485-ADJ11046682 (August 2023). Along the way, the WCAB panel set forth a review of the law on the grounds for setting aside a stipulation of a party after an award has been issued.

The appeals board has continuing jurisdiction over all its orders, decisions, and awards made and entered under the provisions of [Division 4] . . . At any time, upon notice and after the opportunity to be heard is given to the parties in interest, the appeals board may rescind, alter, or amend any order, decision, or award, good cause appearing therefor.” (Lab. Code, § 5803.)

Contract principles apply to settlements of workers’ compensation disputes. The legal principles governing compromise and release agreements, and by extension, stipulations with request for award, are the same as those governing other contracts. (Burbank Studios v. Workers’ Co. Appeals Bd. (Yount) (1982) 134 Cal.App.3d 929, 935 [47 Cal.Comp.Cases 832].) Stipulations between the parties must be interpreted to give effect to the mutual intention of the parties it existed at the time of contracting, so far as the same is ascertainable and lawful. (County of San Joaquin v. Workers’ Compensation Appeals Bd. (Sepulveda) (2004) 117 Cal.App.4th 1180, 1184 [69 Cal.Comp.Cases 193]; Civ. Code, § 1636.)

“A stipulation is ‘An agreement between opposing counsel …. ordinarily entered into for the purpose of avoiding delay, trouble, or expense in the conduct of the action,’ (Ballentine, Law Dict. (1930) p. 1235, col. 2) and serves ‘to obviate need for proof or to narrow range of litigable issues’ (Black’s Law Dict. (6th ed. 1990) p. 1415, col. 1) in a legal proceeding.” (County of Sacramento v. Workers’ Comp. Appeals Bd. (Weatherall) (2000) 77 Cal.App.4th 1114, 1118 [65 Cal.Comp.Cases 1].) Stipulations are binding on the parties unless, on a showing of good cause, the parties are given permission to withdraw from their agreements. (Weatherall, supra, at 1121.)

“Good cause” to set aside an order or stipulations depends upon the facts and circumstances of each case. “Good cause” includes mutual mistake of fact, duress, fraud, undue influence, and procedural irregularities. (Johnson v. Workmen’s Comp. Appeals Bd. (1970) 2 Cal.3d 964, 975 [35 Cal.Comp.Cases 362]; Santa Maria Bonita School District v. Workers’ Comp. Appeals Bd. (Recinos) (2002) 67 Cal.Comp.Cases 848, 850 (writ den.); City of Beverly Hills v. Workers’ Comp. Appeals Bd. (Dowdle) (1997) 62 Cal.Comp.Cases 1691, 1692 (writ den.); Smith v. Workers’ Comp. Appeals Bd. (1985) 168 Cal.App.3d 1160, 1170 [50 Cal.Comp.Cases 311].)

To determine whether there is good cause to rescind awards and stipulations, the circumstances surrounding their execution and approval must be assessed. (See Labor Code § 5702; Weatherall, supra, 1118-1121; Robinson v. Workers’ Comp. Appeals Bd. (1987) 194 Cal.App.3d 784, 790-792 [52 Cal.Comp.Cases 419]; Huston v. Workers’ Comp. Appeals Bd. (1979) 95 Cal.App.3d 856, 864-867 [44 Cal.Comp.Cases 798].)

Moreover, “[t]he Workers’ Compensation Appeals Board shall inquire into the adequacy of all Compromise and Release agreements and Stipulations with Request for Award, and may set the matter for hearing to take evidence when necessary to determine whether the agreement should be approved or disapproved, or issue findings and awards.” (Cal. Code Regs., tit. 8, § 10700(b).)

The WCJ has the discretionary authority to develop the record when the medical record is not substantial evidence or when appropriate to provide due process or fully adjudicate the issues. (Lab. Code, §§ 5701, 5906; McClune v. Workers’ Comp. Appeals Bd. (1998) 62 Cal.App.4th 1117, 1121-1122 [63 Cal.Comp.Cases 261]; Tyler v. Workers’ Comp. Appeals Bd. (1997) 56 Cal.App.4th 389, 394 [62 Cal.Comp.Cases 924].)

All parties in workers’ compensation proceedings retain their fundamental right to due process and a fair hearing under both the California and United States Constitutions. (Rucker v. Workers’ Comp. Appeals Bd. (2000) 82 Cal.App.4th 151, 157-158 [65 Cal.Comp.Cases 805].)

“Accordingly, we dismiss the Petition as premature and return the matter to the WCJ for further proceedings consistent with this opinion. Upon return of this matter to the trial level, we recommend that the WCJ treat the Petition as a petition to set aside, including setting a hearing to allow the parties to provide evidence and create a record upon which a decision can be made by the WCJ.”