Passing the Buck: The Deficiencies of Labor Code Section 3602(d)
MARTIN FASSLER, ALJ, RET.
In California all private sector employers are required to secure workers’ compensation insurance or to obtain approval from the Department of Industrial Relations to be self-insured. However, Labor Code section 3602(d), enacted in 1995, provides that if a business employs a worker assigned to it by another business, those two businesses may agree on which of them is to provide workers’ compensation insurance for the worker, thereby excusing one of them from having to secure coverage. Specifically, Labor Code section 3602(d) provides: