BISON OWNER IS FINALLY GORED

After a two year investigation, a joint task force of California and Georgia agencies has finally arrested the owner of the Bison Workforce and Bison Data Systems, Wesley Owens, for workers' compensation fraud and employee tax evasion. Bison is a PEO whose impact has been significant in California in recent years.

Bison contracted with various PEOs, temporary agencies and special employers to handle payroll services as well as purchase workers' compensation insurance. However, as claims were filed, the contracting parties have discovered that Bison only had coverage for its own office employees (through SCIF or Hartford) and almost never actually purchased insurance that would specifically cover their client's employees.

As a result of Bison's antics, benefits for injured workers' benefits are being delayed while various employers and carriers are trying to determine which party will ultimately be responsible for providing benefits. Certainly SCIF and Hartford has seen a significant rise in litigation as they are drawn into most Bison-related cases as the listed carriers; as well as the UEBTF due to the potential lack of any actual insurance. Finally, insurance carriers for the special employers are being joined because the applicant was working at their facility at the time of the alleged injury even though the employer had a contract with a temp agency that purportedly was suppose to handle any work injury issues.

[COMMENT: When dealing with a temp agency, an employer should always demand a copy of the actual work comp policy with an endorsement covering their job site.]

LC 132a STANDARD AFFIRMED

In Vaca v. Vons (2019) 47 CWCR 129,

an employee sustained a wrist injury. Thereafter a manager told the employee he should look for another job because he was always hurt, and two months later the employee was fired for allegedly violating company procedures (not signing in and falsified time cards). At the LC 132a Trial, the employer failed to present any documentary evidence of any company policy being violated (no sign-in sheets, no time cards, etc.), resulting in the employee prevailing.

In evaluating a LC 132a situation the WCAB applied the concept derived from Dept. of Rehab v. WCAB (Lauher)(2003) 68 CCC 831 which asked whether an injured employee was "singled out for disadvantageous treatment" by the employer.

[COMMENT: An injured worker has the initial burden to show a job injury occurred and the employer took some action against the worker that deprived them of some benefit. The burden then shifts to the employer to prove no unlawful discrimination occurred.]