BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1093
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1093 (Yamada)
          As Amended  April 28, 2009
          Majority vote 

           INSURANCE           10-0                                        
           
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          |Ayes:|Coto, Garrick, Blakeslee, |     |                          |
          |     |                          |     |                          |
          |     |Charles Calderon, Carter, |     |                          |
          |     |Feuer, Hayashi, Hill,     |     |                          |
          |     |Niello, Torres            |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Provides that a "personal relationship" or "personal  
          connection" is not established, for purposes of determining a  
          claim for workers' compensation benefits, based solely on a  
          third-party aggressor's beliefs regarding sex, race, color,  
          religion, ancestry, national origin, marital status, or sexual  
          orientation where the employee-victim is believed by the  
          third-party to be a member of one of the protected classes.

           EXISTING LAW  :

          1)Provides for a comprehensive system of workers' compensation  
            benefits for employees who suffer injuries or illnesses during  
            the course and scope of employment.  These benefits include  
            death benefits paid to spouses and other dependents in the  
            event an employee dies as a result of his or her job, as well  
            as medical payments for injuries suffered by the employee,  
            among other benefits.

          2)Provides, as a matter of case law, that a death or injury is  
            not job-related if the employee is killed or injured as a  
            result of a personal motivation between a third-party  
            aggressor and the employee-victim.

           FISCAL EFFECT  :  Undetermined

           COMMENTS  :   

          1)The author introduced this bill in response to a recent case.   








                                                                  AB 1093
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            An African-American woman was murdered while at work at a  
            Dollar Tree store by an individual who, it was later  
            determined during a psychiatric evaluation, went out intending  
            to kill the first black person he saw.  Unfortunately, the  
            Dollar Tree employee was that person.  Dollar Tree defended  
            the claim for workers' compensation death benefits by relying  
            on at least one "personal motivation" case that involved an  
            element of ethnic hatred, but also involved a prior  
            relationship between the killer and the victim; and, the  
            killing only coincidentally occurred on property related to  
            the victim's job.

          Dollar Tree eventually settled this case, but the case presents  
            the issue of what type of personal motivations qualify to  
            defeat a claim for workers' compensation benefits.  Because  
            case law was sufficiently vague to cause Dollar Tree to  
            initially deny the claim, the author believes that clarity in  
            the law is appropriate.

          2)The principle involved in this rationale for denial of a  
            workers' compensation claim is that if the death or assault  
            causing injury is based on some personal relationship between  
            the victim and attacker, and it only coincidentally occurs at  
            the place of employment, the injury or death is not genuinely  
            due to the employment.  The classic example is the domestic  
            violence situation, where a spouse or significant other tracks  
            down his or her estranged partner at the workplace and  
            inflicts violence.  That the victim happened to be at work at  
            the time the aggressor found him or her does not mean that the  
            injuries were in the course of employment.

          The underlying case law that motivated Dollar Tree (SCIF v. WCAB  
            (DeVargas) (1982) 133 CalApp3d 643) involved the killing of  
            two Mexican men in the bunkhouse of their employer.  The  
            killer had met the two victims earlier; and, discussed a sales  
            transaction involving the victims' vehicle.  While the victims  
            thought they were arranging a sale, the killer had other  
            ideas.  Boasting to friends about how easy it would be to  
            "blow away Mexicans," the killer pretended to come to the  
            victims' bunkhouse to complete the sale.  The Court of Appeal  
            ruled that the deaths were not job related, were based on a  
            prior relationship with the killer, and only coincidentally  
            occurred at the employer's bunkhouse.









                                                                  AB 1093
                                                                  Page  3


          Dollar Tree initially seized upon the ethnic hatred element of  
            the SCIF v. WCAB case to argue that its employee was killed by  
            a person whose motive involved racial hatred.  A careful  
            reading of the case shows it was the prior actual relationship  
            that led to the killing.  Nonetheless, the author argues that  
            clarification of these issues is appropriate.

          3)The bill, as recently amended, takes a narrow approach to  
            resolving the vagueness in the law.  The new language provides  
            that a claim shall not be denied "based only on a  
            determination that the third party injured or killed the  
            employee solely because of the third party's beliefs?"  Thus,  
            the language allows for an employer to argue that there was a  
            genuine outside relationship that caused the injury or death,  
            even if there is some evidence of motivation based on a  
            protected characteristic.  At the same time, the bill ensures  
            that a truly random hate crime such as the Dollar Tree case is  
            compensable.  Thus the bill takes away any motivation an  
            employer might have to rely on the vagueness of prior case  
            law.

           
          Analysis Prepared by  :    Mark Rakich / INS. / (916) 319-2086



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