The California State Compensation Insurance Fund’s chief executive has dropped plans for $250 bonuses to 7,900 employees after another agency threatened to sue.
Jan Frank is stepping down Friday as president of the quasi-public State Compensation Insurance Fund.
She promised the nearly $2 million in bonuses in July as the Schwarzenegger administration tried to furlough the workers, and other state employees, three days each month. Judges have since ruled Frank’s employees are exempt from the cutbacks.
She was a defendant in the lawsuits but testified on her employees’ behalf.
Frank said in an e-mail to employees Friday that she can’t give the bonuses because the Department of Personnel Administration threatened to sue and seek reimbursement from each employee who received the bonus.
Brokette says: 
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
