A Sacramento County court ruled that California’s quasi-public State Compensation Insurance Fund cannot require businesses to have separate workers’ compensation insurance policies for employee leasing companies, according to the Sacramento Bee. The decision upheld Insurance Commissioner John Garamendi’s authority to regulate State Fund’s underwriting practices. Garamendi allowed Staff Resources Inc. to cover clients with the firm’s blanket insurance policy, but State Fund filed a lawsuit against Garamendi blocking his order. The court ruled in Garamendi’s favor. State Fund will review the ruling before considering an appeal and ask the Workers’ Compensation Insurance Rating Bureau to revise its rules so that they require separate policies for professional employee organizations.
Topics Legislation
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