Tag: California Workers Compensation Act

California Appellate Court Finds Employers Can Face Injury Claims from Third Parties A recent California appellate court ruling may have given employers one more thing to worry about when an employee becomes infected with COVID-19. According to this new ruling, an employer may face civil liability for employees who become infected and pass it on to third parties. In this case, a California appellate court permitted a wrongful death suit that was filed on behalf of a non-employee that had allegedly contracted the illness from an employee to proceed. The claim, in this case, states that the employer, a candy manufacturer, had failed to maintain social distancing in the workplace, which led to several employees contracting COVID-19. One such employee passed the virus onto their spouse, who was not an employee. Though the employee would recover, their spouse died. The employer argued that the case was preempted by the "derivative injury doctrine," which ordinarily prohibits lawsuits from third parties that would be covered by the California Workers Compensation Act. However, the court rejected this argument finding that third parties that suffer an injury resulting from an employer's negligence, even that are completely independent of the injuries of an employee, have not lost their right to file a lawsuit. In this case, what the court found that distinguishes this case from a typical derivative claim is the fact that this case is not derivative of an employee's injury. Though the harm the spouse suffered may have been causally related to the employee's injury, it is not derivative of it and therefore not preempted, the court found. How Can an Employer Defend Themselves? Though this ruling appears dangerous for California employers, it is important to look at the ruling in context. The lower court had rejected the case before it made it to discovery, and the appellate court has simply ruled that the non-employee may still be able to bring a claim. Though this means non-employees may be able to bring claims, it will likely be difficult for plaintiffs to prove that the virus made it to them through a particular employer's workplace or that the workplace failed to maintain sufficient safety procedures. Additionally, other possible factors may prevent contracting such an illness. Finally, though an employee is presumed under California's Workers' Compensation law to have contracted the virus in their workplace, it is uncertain if this same rule applies to a third party. Employer Takeaways No matter the outcome, a lawsuit is a considerable expense, and employers would be well served to ensure that they have sufficient policies in place to prevent the spread of COVID-19. These policies should be compliant with the latest guidance from government authorities, and proper notification should always be provided to any employees that may have been exposed whenever a case develops in the workplace. In order to ensure every effort is made to protect both employees and their loved ones, employers may wish to provide guidance on family member safety in their COVID-19 plan as well. Pre-employ helps employers like you stay compliant and incorporate fair chance hiring practices. Download our free resource 5 Tips To Avoid FCRA Non-Compliance to learn more. STAY COMPLIANT WITH YOUR BACKGROUND CHECKS

Tag: California Workers Compensation Act

California Appellate Court Finds Employers Can Face Injury Claims from Third Parties

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