24 | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com principal to control the manner and means of accomplishing the desired results, but they also list ten other factors to consider.63 The regulations explain how to apply these rules in various industries, including real estate, home health care, computer services, newspaper distribution, process servers, banking, and cosmetology.64 A comprehensive EDD checklist provides guidance in determining whether the service provider is an employee or an independent contractor. But in 2019 the Legislature re-wrote the rules of the game, creating a presumption of employment status for any worker providing service to a hiring entity unless the entity can satisfy the ABC test as to that provider.65 (See § 19.7.) AB 5 and AB 2257 have tightened criteria for workers who previously could qualify as independent contractors, requiring more workers in the gig economy to be classified as employees, especially if their work is integral to the business’s core functions. 66 1.7 Unemployment Insurance Appeals Board (UIAB) Originally formed in 1943,67 the UIAB hears claims for unemployment and disability benefits. These cases are appeals from administrative determinations made by the EDD. The UIAB also hears petitions from taxpayers concerning assessments made by the EDD’s Tax Branch. The initial hearings and decisions are heard in eleven Offices of Appeals throughout the state. These offices conduct the first level of appeal. An administrative law judge presides, and takes tape-recorded testimony under oath (see § 15.3). A losing party at the first level may appeal to the second level.68 1.8 Division of Workers’ Compensation (DWC) Workers’ compensation cases brought by injured workers (“applicants”) are heard by workers’ compensation referees employed by the DWC. Any settlement of a workers’ compensation case must be in the form of a compromise and release or stipulations with request for award. A compromise and release extinguishes liability for future medical care in return for a lump sum payment. A stipulation with request for award leaves open the injured worker’s entitlement to future medical treatment. Both types of settlement must be approved by a workers’ compensation referee. The standard “C&R” form used to effect a compromise and release will not release an individual’s civil claims against the employer69 and a civil release alone cannot settle a workers’ compensation claim. Applicants’ attorney fees also must be approved by a workers’ compensation judge, and are generally 915% of the settlement amount.70 Only the WCAB can resolve workers’ compensation issues. They cannot be resolved in a Settlement and Release on the civil side without WCAB approval. 1.9 Workers’ Compensation Appeals Board (WCAB) The WCAB is a seven-member judicial body appointed by the Governor and confirmed by the California Senate. It reviews petitions for reconsideration of decisions by workers’ compensation administrative law judges of the DWC and regulates the adjudication process by adopting rules of practice and procedure. A WCAB decision is reviewable only by the appellate courts. 1.10 Division of Occupational Safety and Health (DOSH) The DOSH, also known as Cal/OSHA, protects workers and the public from safety hazards by enforcing occupational health and safety laws and providing information and consultative assistance to employers, workers, and the public about workplace and public safety matters. The DOSH, through the Cal/OSHA Enforcement Unit, inspects California workplaces based on worker complaints, accident reports, and programmed inspections especially in high hazard industries. Penalties for Cal/OSHA violations are assessed per citation, and can run from several hundred dollars to tens of thousands of dollars.71
RkJQdWJsaXNoZXIy OTkwMTQ4