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Tag: 2021 News

Exclusive Remedy Ends Wrongful Termination Case

Marian Garcia began her employment with Poker Flat in 2006 when she was hired to be Poker Flat’s office manager. Poker Flat is a property owners association located at Lake Tulloch in Calaveras County.

Poker Flat maintained a boat launch and docks on the lake and charged association members to use these facilities. Members would pay a fee for a boat sticker and gate card to access the gated community and boat launch. At some point a financial discrepancy came to the attention of the Association, and Garcia was placed on administrative leave while an accounting firm investigated the issue. Her absence resulted in a greater work burden for her assistant Stacy Halstead.

Her assistant became frustrated over her working situation, and posted an expletive ridden message on Facebook about her situation, blaming Garcia as the “thief” who was responsible.

Subsequently the accountant’s report recounted significant irregularities, including a lack of deposited money to match member payment entries in the ledger book. The following day, Garcia’s employment with Poker Flat was terminated effective immediately

Marian Garcia sued her former employer, Poker Flat Property Owners Association, Inc., alleging she was wrongfully terminated in retaliation for reports she made to Poker Flat’s board members concerning sexual harassment and other claimed violations of law.

The trial court granted summary judgment in Poker Flat’s favor. With respect to Garcia’s wrongful termination and retaliation causes of action, the trial court concluded Poker Flat’s evidence established that Garcia’s termination was for a legitimate, non-retaliatory basis. And that she failed to demonstrate any causal nexus between her complaints about Poker Flat’s claimed misconduct, “occurring in almost every case years before her eventual termination,” and that termination.

The Court of Appeal affirmed the dismissal in the unpublished case of Garcia v Poker Flat Property Owners Association.

The Court noted that “the trial court’s ruling must be affirmed because Garcia’s causes of action for wrongful termination and retaliation fail as a matter of law and her remaining causes of action against Poker Flat are either barred by workers’ compensation exclusivity or also fail as a matter of law.”

Poker Flat’s showing of a nonretaliatory reason for terminating Garcia’s employment entitled the association to judgment as a matter of law unless Garcia could “show there was nonetheless a triable issue that decisions leading to [her] termination were actually made on the prohibited basis of [retaliation].”

Labor Code section 3602, subdivision (a) establishes the exclusive remedy provisions, which applies unless certain exceptions are met. Subdivision (b) of this section sets forth three circumstances in which “[a]n employee . . . may bring an action at law for damages against the employer, as if this division did not apply,” none of which apply in this case.

San Diego Researchers Seek Better Coronavirus Vaccines

SARS. MERS. COVID-19. Coronaviruses caused all three diseases, and scientists are betting other members of this viral family will cause new outbreaks.

But what if a single vaccine worked against all coronaviruses – past, present and future?

According to the report in the San Diego Union Tribune, researchers from San Diego to Boston are racing to turn that possibility into a reality, and they just got some major help. On Thursday, La Jolla Institute for Immunology announced that Erica Ollmann Saphire, president of the organization, won a three-year, $2.6-million grant from the National Institutes of Health to develop a so-called pan-coronavirus vaccine.

“It’s a class of viruses that we know can cause global pandemics. And it’s something that we need to be prepared for,” Saphire said. “We’re trying to ward off the next pandemic.”

She’s part of a larger effort led by Brigham and Women’s Hospital in Boston and joined by researchers at MIT, Massachusetts General Hospital and Boston University. Scientists in Boston are studying people who’ve been vaccinated or recovered from COVID-19, searching for immune responses with the potential to fight off a broad swath of coronaviruses.

For this strategy to work, researchers must identify parts of the viral surface that don’t change from one coronavirus to the next and train the immune system to go after these shared regions. Saphire’s team will handle the design of the vaccine itself. Her group has figured out how to manufacture a version of the coronavirus’s spike protein – the protein that latches onto your cells and lets the virus slip inside them – that closely mimics the shape of the spike on the actual virus.

That’s key because, for proteins, shape is everything. The millions of proteins in each of your cells fold into intricate 3D structures, a bit like works of origami. Those shapes control what each protein does, and even slight changes affect how or if they work.

“If the protein is better structured, better folded and more stable, it will remain longer and stimulate the immune system longer,” Saphire said.

The full grant lasts five years, with additional funding to arrive in year four. By that time, Saphire hopes to have a clearer sense of how a pan-coronavirus vaccine should be administered. That means knowing how many doses people need, how far apart shots should be spaced and whether the vaccine should use proteins, RNA (like Pfizer’s and Moderna’s shots), or some other approach to spark immunity.

Plenty of other researchers are chasing the same goal. Just a 10-minute drive from Saphire’s lab, scientists at Scripps Research are also working toward a pan-coronavirus vaccine in partnership with the Gates Foundation. Immunologist Dennis Burton is one of them, and he’s employing the same strategy his team has used to study HIV for decades, closely examining antibody responses for clues on how to reverse-engineer a vaccine that could spark broad and long-lasting protection.

148 Elder-Care Workers Prevail in $8.3M Wage Theft Case

Nearly 150 former workers of an elder-care business in West Hills will be paid more than $8.3 million in a wage theft investigation that found employees were subjected to “oppressive” conditions and paid as little as $2.40 hourly, according to the state Labor Commissioner’s Office.

The Oct. 1 judgment will compensate 148 employees who worked at six Adat Shalom Board & Care locations. It upholds wage-theft citations issued to the business and owner Angelica Reingold in 2018.

The facilities, which have since been re-branded as Land of Peace, are all in West Hills with various addresses on Kittridge Street and Sale Avenue.

Pilipino Workers Center, a nonprofit that helps Filipino workers and their families, referred the case to the California Commissioner’s Office and assisted in identifying employees during the investigation.

The Labor Commissioner’s Office opened its investigation in June 2017 after receiving a report of labor law violations. The investigation uncovered that from July 2014 to July 2017, the caregivers at the six facilities in West Hills were:

– – Paid less than the minimum wage for each hour they worked.
– – Not paid overtime for working 24-hour shifts, six days a week.
– – Not relieved from their duties to take meal or rest breaks.
– – Provided pay stubs that withheld key information such as hourly rate of pay and total number of hours worked.

The live-in caregivers were responsible for monitoring and caring for elderly residents and hospice patients, many of them suffering from Alzheimer’s or dementia. The caregivers were paid fixed amounts ranging from $1,500 to $1,800 per month, or $2.40 to $2.88 per hour.

Aquilina Soriano Versoza, the center’s executive director, said employees at the care facilities could sleep at certain times but were still on call 24 hours a day. “They listened to monitors and had to leave their doors open so they’d be ready to respond,” she said. “They had to ask permission to leave if they needed to run to the store.”

Residential care workers, leaders from Pilipino Workers Center and other supporters held a press conference Wednesday to announce the Labor Commissioner’s decision. The judgment includes:

– – $1,623,384 for minimum wages owed
– – $1,939,112 for unpaid overtime
– – $2,540,675 in liquidated damages
– – $152,441 for meal period wages owed
– – $2,100,405 in prejudgment interest

Founded in 1997, Pilipino Workers Center (PWC) is a non-profit 501(c)3 that organizes the low-wage Pilipinx community in Southern California to demand better living and working conditions. PWC provides support for human trafficking survivors, immigration services, affordable housing, workforce training, education on workers’ rights, wage theft enforcement, free tax preparation, and a cooperative for homecare workers.

Another Former NFL Player Pleads Guilty to EDD Fraud

Former NFL wide receiver Kenbrell Thompkins pleaded guilty in a scheme to fraudulently obtain COVID-19 unemployment insurance benefits from the state of California.

According to court records obtained by the Associated Press, Thompkins entered guilty pleas on one count of unauthorized access device fraud and one count of aggravated identity theft in a federal court in Miami on Monday.

According to the plea agreement, Thompkins used stolen identities of Florida residents to apply for COVID-19 unemployment benefits from California.

The state approved the applications and sent $300,000 in benefits in the form of debit cards to South Florida addresses Thompkins set up Around $230,000 of those funds were withdrawn from ATMs across South Florida.

The benefits were part of the Covid Aid, Relief and Economic Security Act passed by the U.S. Congress. The bill’s intent was to help people and businesses during the financial downturn caused by the COVID-19 pandemic.

33 year old Thompkins played three seasons in the NFL from 2013-15 with the New York Jets, New England Patriots and Oakland Raiders. According to Spotrac, he earned $1.4 million as an NFL player.

He’s scheduled to be sentenced on Jan. 6 and faces a maximum of 12 years in prison.

Thompkins is the latest former professional athlete named in a fraud scheme in recent weeks.

In September, ex-NFL players Clinton Portis, Tamarick Vanover and Robert McCune reportedly pleaded guilty to defrauding a league healthcare plan.

On Oct. 7, 18 ex-NBA players including Terrence Williams and Glen “Big Baby” Davis were charged in an alleged $4 million scheme to defraud the NBA player’s health and welfare benefit plan.

Jury Awards Pharmacist $27M in Walmart Wage Theft Case

The District Court of Central California on Wednesday awarded a former Walmart pharmacist with $27 million in total damages, agreeing that the retail giant routinely denied her work breaks and overtime pay.

According to the report on CourtHouse News, the case was originally filed by former Walmart pharmacist Afrouz Nikmanesh in Orange County Superior Court in 2015, but was later moved to the District Court of Central California.

Nikmanesh said Walmart told her to obtain her immunization certification, which would allow her to provide on-site immunizations to pharmacy patients, but refused to compensate her for the time she spent studying and preparing for the exam. She also claimed that getting the certification increased her workload several times over, but said Walmart refused to provide additional staffing to meet the increased demand.

The ruling includes $40,000 for economic losses; $100,000 for non-economic losses; $60,000 for future non-economic losses; and $27.3 million in punitive damages.

In the original complaint, Nikmanesh claimed she was denied overtime wages along with meal and rest breaks, forced to perform work off the clock studying for and taking the immunization certification exam and given inaccurate wage statements that didn’t account for the hours she actually spent working.

She said Walmart enacted a policy prohibiting its pharmacists from leaving the pharmacy unattended, adding that this made it impossible for her to take her legally mandated meal and rest breaks. Because of a shortage of pharmacists who could cover for her, she said she was effectively forced to work throughout their shifts without pause.

Walmart also committed numerous pharmacy violations and instances of noncompliance with state law, according to the plaintiff, including charging Medicare beneficiaries above the Medi-Cal reimbursement rate for prescriptions and failing to provide eligible patients with a Medicare discount.

She also said Walmart failed to report necessary data to the Controlled Substance Utilization Review and Evaluation System, otherwise known as the CURES program, a database of controlled substance prescriptions dispensed throughout California which requires pharmacists to file weekly reports with the California Department of Justice.

Nikmanesh reported these violations to her supervisors sometime between July 2013 and September 2014 and asked that they investigate and correct the various compliance issues. Walmart responded by firing Nikmanesh in September 2014, which she claims was solely in retaliation for her complaining about their non-compliance with state laws.

The company also failed to reimburse Nikmanesh for business expenses, didn’t give her a bonus that she earned, refused her request to host a health fair promoting the pharmacy, unfairly denied her promotions and gave her a poor performance review shortly after she complained about their illegal practices, according to the lawsuit.

The Jury of 8 unanimously found that Ms. Nikmanesh’s reporting of Walmart’s overcharging Medicare customers over the age of 65 and persons under the age of 65 with disabilities for their medications and not properly reporting the dispensement of controlled substances to the Department of Justice under the Controlled Substance Utilization Review and Evaluation System program was a substantial motivating reason for Walmart’s decision to retaliate against and discharge her,” explained Dayton B. Parcells III, lead attorney for the plaintiff.

Representatives for Walmart were not immediately available for comment.

OSHA Suspends Adverse COVID Vaccination Effects Reporting

The purpose of the OSHA Federal Regulation located at 29 CFR 1904 is to require employers to record and report work-related fatalities, injuries, and illnesses.

Section 1904.5(a) states “Basic requirement. You must consider an injury or illness to be work-related if an event or exposure in the work environment either caused or contributed to the resulting condition or significantly aggravated a pre-existing injury or illness. Work-relatedness is presumed for injuries and illnesses resulting from events or exposures occurring in the work environment, unless an exception in §1904.5(b)(2) specifically applies.”

Section 1904.5(b)(1) says What is the “work environment”? OSHA defines the work environment as “the establishment and other locations where one or more employees are working or are present as a condition of their employment. The work environment includes not only physical locations, but also the equipment or materials used by the employee during the course of his or her work.”

So are adverse reactions to an employer’s mandated COVID-19 vaccine recordable on the OSHA recordkeeping log? Looking further in the regulation are the exceptions. One of them might apply.

1904.5(b)(2) You are not required to record injuries and illnesses if . . . 1904.5(b)(2)(iii)The injury or illness results solely from voluntary participation in a wellness program or in a medical, fitness, or recreational activity such as blood donation, physical examination, flu shot, exercise class, racquetball, or baseball.

However this exception does not seem to apply since a “mandated” COVID vaccination is not “voluntary,” one of the conditions of the above exception.

It still might raise an employer’s concern, had not this exact question been answered by the OSHA Coronavirus FAQ on this regulation, which reads:

DOL and OSHA, as well as other federal agencies, are working diligently to encourage COVID-19 vaccinations. OSHA does not wish to have any appearance of discouraging workers from receiving COVID-19 vaccination, and also does not wish to disincentivize employers’ vaccination efforts. As a result, OSHA will not enforce 29 CFR 1904’s recording requirements to require any employers to record worker side effects from COVID-19 vaccination at least through May 2022. We will reevaluate the agency’s position at that time to determine the best course of action moving forward.

By using the word “any” in the FAQ, the temporary excuse until at least May 2022 it would seem to imply to both voluntary or mandatory COVID-19 vaccination adverse reactions, although the wording of this FAQ could have been more clearly written.

Nonetheless, this sua sponte OSHA decision to forgive a component of regulatory oversight is puzzling and questionable. The stated purpose of OSHA is to regulate workplace safety. President Biden has announced his intent to mandate COVID-19 vaccinations. Yet his agency in charge of monitoring safety does not want to know about any adverse effect of the vaccination. Thus if it ends up in the long run to be unsafe, the documentary trail would then be obscured, in what should be a transparent governmental agency.

Employees across the nation are voicing their concerns about the safety of the COVID-19 vaccination. This clause in the FAQ will no doubt trigger their suspicions, rather than calm them down.

SCOTUS Declines to Hear Maine Vaccination Mandate Case

Courthouse News reports that the U.S. Supreme Court declined an emergency application to stop the enforcement of a Covid-19 vaccine mandate for health care workers in Maine.

Maine Governor Janet Mills, a Democrat, instituted the mandate in late September requiring health care workers to be fully vaccinated by Oct. 29, or risk losing their jobs. Several health care workers challenged the mandate, citing in their complaint beliefs that prevent them from receiving a Covid-19 vaccine because of “the vaccines’ connections to aborted fetal cell lines,” among other religious reasons.

After a federal district court judge denied the health care workers injunctive relief last week, they quickly filed their emergency application with the U.S. Supreme Court.

But Justice Stephen Breyer denied the application without prejudice Tuesday afternoon.

The Supreme Court has previously used the emergency docket – sometimes called the shadow docket – to reject vaccine mandates challenges from public school teachers in New York and students and employees from Indiana University, but this case marks the first time the court addressed a statewide Covid-19 vaccine mandate.

“We are pleased that the Supreme Court is ready to consider this case if we do not get relief at the First Circuit Court of Appeals or if the lower court does not rule by October 29,” Mathew Staver, attorney for the plaintiffs and Liberty Counsel founder and chairman, said in a statement. “As of Monday, our case is now fully briefed at the court of appeals. We look forward to an expedited ruling. There is no question that Gov. Janet Mills cannot nullify federal law and the First Amendment to the U.S. Constitution.”

Staver and the plaintiffs did not have to wait long for the First Circuit to weigh in. Shortly after the Supreme Court’s denial, a three-judge panel of the First Circuit also ruled against the plaintiffs, rejecting their request for a preliminary injunction.

“While we do not diminish the appellants’ liberty of conscience, we cannot find, absent any constitutional or statutory violation, any error in the district court’s conclusion that the rule promotes strong public interests and that an injunction would not serve the public interest,” U.S. Circuit Judge Sandra Lynch, a Bill Clinton appointee, wrote in the 35-page opinion.

Now, the case is likely headed straight back to the Supreme Court.

According to Maine’s vaccination data, over 85% of all health care workers across the state’s facilities were vaccinated as of September.

WCRI Publishes New Report on Medical Payment Trends

A new set of studies released by the Workers Compensation Research Institute (WCRI) examines the factors behind trends in medical payments per claim in state workers’ compensation systems and the impact of legislative and regulatory changes on those costs.

The studies, CompScope Medical Benchmarks, 22nd Edition, examine trends in payments, prices, and utilization of medical care for workers with injuries. They provide analyses of recent cost drivers and trends for policymakers and other system stakeholders, reporting how medical payments per claim and cost components vary over time and from state to state.

The reports are useful to identify where medical cost and care patterns may be changing and help identify where medical payments per claim or utilization may differ from other states,” said Ramona Tanabe, executive vice president and counsel for WCRI. “While the full impact of COVID-19 on state workers’ compensation systems is currently unclear, these studies will be a useful baseline to monitor the effects.”

This study examines medical payments, prices, and utilization for various types of services by nonhospital and hospital providers in California and compares them with 17 other states. It also examines how these metrics of medical payments and care have changed, mainly from 2014 to 2019.

Claims with experience through 2020 for injuries up to and including 2019 were analyzed. In some cases, a longer period was used to supply historical context for key metrics. Information from other WCRI studies was also included to provide a more complete picture of the system in California.

California implemented multiple policy changes in recent years. The drug formulary required by Assembly Bill (AB) 1124 became effective in January 2018, and data in this report reflect up to 27 months of experience following the implementation of that policy initiative. AB 1124 and Senate Bill (SB) 1160, two major fraud-fighting measures, were enacted in January 2017. The data in this study reflect up to 39 months of experience after the passage of these bills.
SB 863, a comprehensive reform legislation, went into effect in January 2013. Results in this report reflect the state’s system performance seven years after the implementation of SB 863.

In addition, during the analysis period of this study, California went through multiple medical fee schedule updates for hospital outpatient department and ambulatory surgery center services, and nonhospital professional services. These regulatory changes are also potential factors influencing the results discussed in this report.

The results in the report include experience on claims through March 2020, at the very beginning of the coronavirus (COVID-19) pandemic. The study, therefore, provides a pre-COVID-19 baseline for evaluating the impact of the virus on workers’ compensation claims.

The studies cover the period from 2014 through 2019, with claims experience through March 2020. The 18 states in the study ― Arkansas, California, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin ― represent more than 60 percent of the nation’s workers’ compensation benefit payments. Individual reports are available for every state except Arkansas, Iowa, and Tennessee.

For more information on these studies, visit www.wcrinet.org.

WCAB Reverses AOE-COE Finding for LAPD Basketball Injury

Erika Spence filed an application for adjudication of claim alleging that on July 30, 2017 she sustained industrial injury to her right foot while playing in a basketball tournament with other women from the Los Angeles Police Department called the Menehune Basketball Invitational Tournament held at a facility in the City of La Puente, California and hosted by a private organization.

At the trial on the sole issue of AOE-COE, Spence testified that no one encouraged or pressured her to play on the women’s basketball team. There would not be any negative consequences if she did not join the team, nor would there be any promotions or benefits if she did join. Her participation on the team was voluntary. Participating in tournaments was also voluntary.

Defendant presented the testimony of Sergeant Edward Acosta along with an excerpt of the 2017 LAPD Manual Vol. 3, in which Sergeant Acosta testified that, while basketball is on a list of approved activities, the tournament in which applicant was injured did not meet the requirements outlined in the LAPD Manual.

Based on this evidence, the WCJ issued the F&O finding that the applicant’s injury occurred AOE/COE. The LAPD petition for reconsideration was granted, and the WCAB panel found that she did not sustain injury AOE-COE to her right foot in the case of Spence v City of Los Angeles, ADJ 10987859 (10/6/2021)

Labor Code section 3600(a)(9) bars compensation for an injury Where the injury does not arise out of voluntary participation in any off-duty recreational, social, or athletic activity not constituting part of the employee’s work-related duties, except where these activities are a reasonable expectancy of, or are expressly or impliedly required by, the employment.

Pursuant to Ezzy v. Workers’ Comp. Appeals Bd. (1983) 146 Cal.App.3d 252, 260 [48 Cal.Comp.Cases 611].) evaluation of whether an injury is barred under section 3600(a)(9) requires a two-prong test: (1) whether the employee subjectively believes his or her participation in an activity is expected by the employer, and (2) whether that belief is objectively reasonable.

In this case, based on applicant’s testimony, the first prong of Ezzy was not met. That is, applicant did not establish that she subjectively believed that participation in the Menehune Basketball Invitational Tournament was required.

Additionally, the panel noted that note that departments have the ability to limit the scope of potential liability by designating and/or pre-approving athletic activities or fitness regimens (Young v. Workers’ Comp. Appeals Bd. (2014) 227 Cal.App.4th 472, 482; citing, Taylor v. Workers’ Comp. Appeals Bd. (1988) 199 Cal.App.3d 211.) (Taylor).)

In this case, the LAPD Manual specifically outlined the conditions under which injury resulting from athletic activity will be considered on duty.

Construction Company Cited for $1.7M Wage Theft

The Labor Commissioner’s Office has cited JPI Construction $1.7 million for wage theft violations affecting 265 workers. An investigation found that the San Diego-based company failed to pay workers properly on commercial and residential construction projects, resulting in minimum wage and overtime violations.

The Labor Commissioner’s Office opened an investigation in March 2019 after receiving a report of labor law violations indicating JPI Construction workers were experiencing wage theft because they were only paid for 40 hours a week despite consistently working overtime on mixed-use construction projects in the San Diego and Los Angeles areas. The labor law violations were reported by Carpenters/Contractors Cooperation Committee, a non-profit labor-management organization.

The investigation found that from April 2018 to March 2019, employees doing framing and sheetrock work were paid a flat rate that did not include overtime. This resulted in frequent minimum wage and overtime violations. Investigators interviewed workers and audited the employer’s payroll records to identify violations. The audit uncovered illegally modified timesheets that removed record of the overtime hours the workers should have been paid.

When workers are paid less than minimum wage, they are entitled to liquidated damages that equal the amount of underpaid minimum wages plus interest. Waiting time penalties are imposed when the employer intentionally fails to pay all wages due to the employee at the time of separation. This penalty is calculated by taking the employee’s daily rate of pay and multiplying it by the number of days the employee was not paid, up to a maximum of 30 days.

The citations total $1,771,133, with $1,610,527 payable to the workers. The amount owed to workers includes minimum wage and overtime, waiting time penalties for failure to provide full pay on time, and liquidated damages and interest payable to workers for failure to pay minimum wage for all hours worked. The citations include $143,200 in civil penalties payable to the state.

The owners have appealed the citations. Under the appeal procedure, the Labor Commissioner’s Office will hold a hearing before a hearing officer who will affirm, modify or dismiss the citations.

The Labor Commissioner’s Office in 2020 launched an interdisciplinary outreach campaign, “Reaching Every Californian.” The campaign amplifies basic protections and builds pathways to affected populations so workers and employers understand legal protections and obligations, and the Labor Commissioner’s enforcement procedures.