BILL ANALYSIS                                                                                                                                                                                                    






                 Senate Committee on Labor and Industrial Relations
                               Mark DeSaulnier, Chair

          Date of Hearing: June 24, 2009               2009-2010 Regular  
          Session                              
          Consultant: Gideon L. Baum                   Fiscal:No
                                                       Urgency: No
          
                                  Bill No: AB 1093
                                   Author: Yamada
                               Version: June 17, 2009
          

                                       SUBJECT
          
                               Workers' Compensation.


                                      KEY ISSUE

          Should language prohibiting various forms of discrimination in  
          the delivery of workers' compensation benefits be added to the  
          Labor Code?
          

                                       PURPOSE
          
          To bar the consideration of race, national origin, gender, sex,  
          genetic predisposition, and certain other factors in the  
          delivery of workers' compensation benefits.


                                      ANALYSIS
          
           Existing law:

              a)   Establishes a workers' compensation system that provides  
               benefits to an employee injured at work, irrespective of  
               fault.  This system requires all employers to secure  
               payment of benefits by either securing the consent of the  
               Department of Industrial Relations to self insure or by  
               securing insurance against liability from an insurance  
               company duly authorized by the state.

             b)   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.

             c)   Requires that no person in the State of California  
               shall, on the basis of race, national origin, ethnic group  
               identification, religion, age, sex, sexual orientation,  
               color, or disability, be unlawfully denied full and equal  
               access to the benefits of, or be unlawfully subjected to  
               discrimination under, any program or activity that is  
               conducted, operated, or administered by the state or by any  
               state agency, is funded directly by the state, or receives  
               any financial assistance from the state.  [Government Code  
               11135]
           
          This bill  requires that, for purposes of determining whether to  
          grant or deny a workers' compensation claim, if an employee is  
          injured or killed by a 3rd party in the course of the employee's  
          employment, no personal relationship or personal connection  
          shall be deemed to exist if the 3rd party injured or killed the  
          employee solely because of the employee's sex, race, color,  
          religion, ancestry, national origin, marital status, or sexual  
          orientation.


                                      COMMENTS
          
          1.  Need for this bill?

             The main impetus for this bill was the recent case of Taneka  
            Talley's family and the denial of their workers' compensation  
            claim.  Ms. Talley was murdered in March 2006 by a white  
            supremacist while she was opening a Dollar Tree store in  
            Fairfield.  Dollar Tree's insurer, Specialty Risk Services,  
            argued that because Ms. Talley's murder was racially  
            motivated, and therefore personal, despite the fact she was  
            killed at the Dollar Tree store and would not have been killed  
            has she not been present at the store.

            The underlying case law that motivated Dollar Tree  was SCIF  
            v. WCAB (DeVargas) (1982) 133 Cal. App 3d 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  
          Hearing Date:  June 24, 2009                             AB 1093  
          Consultant: Gideon L. Baum                               Page 2

          Senate Committee on Labor and Industrial Relations 
          








            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.

            However, the Court of Appeal found that "the racial motive  
            could cut off the causation between the employment and the  
            deaths", which at first blush seems to suggest that a racially  
            motivated killing could be considered personal, and therefore  
            non-compensable.  While the prior personal, non-occupational  
            relationship between the victims and the perpetrator in  
            DeVargas would seem to suggest that the case was inapplicable  
            to the Taneka Talley murder or a similar case, the author of  
            AB 1093 believes this should be clarified in statute.

          2.  Double Referral to the Senate Judiciary Committee:  

            If AB 1093 is passed out of the Senate Labor Committee, it  
            will next be heard by the Senate Judiciary Committee.

          3.  Proponent Arguments  :
            
            Proponents argue that state law should be made abundantly  
            clear that a workplace death like Taneka Talley's is a  
            compensable claim.  Proponents note that while Ms. Talley's  
            family was eventually paid death benefits, this was only after  
            significant public pressure was placed on Dollar Tree and its  
            insurance carrier, and there is no reason that a family should  
            rely on public shame to receive these benefits.  

          4.  Opponent Arguments  :

            None received.

          5.    Current Legislation:  

            SB 145 (DeSaulnier), which also addressed the Taneka Talley  
            case, as well as other forms of discrimination in the delivery  
          Hearing Date:  June 24, 2009                             AB 1093  
          Consultant: Gideon L. Baum                               Page 3

          Senate Committee on Labor and Industrial Relations 
          








            of workers' compensation benefits, was heard by this Committee  
            on March 25th.  SB 145 is currently before the Assembly  
            Insurance Committee.

          6.  Prior Legislation  :

            SB 1115 (Migden) of 2008 would have barred the consideration  
            of race, national origin, gender, sex, genetic predisposition,  
            and certain other factors in the determination of an  
            apportionment of the causes of an industrial disability.  It  
            was vetoed by the Governor.
          

                                       SUPPORT
          
          California Applicants' Attorneys Association
          California Labor Federation
          California Nurses Association/National Nurses Organizing  
          Committee
          California State Employees Association
          Glendale City Employees Association
          Organization of SMUD Employees
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association 
          Santa Rosa City Employees Association

          
                                     OPPOSITION
          
          None received.

                                        * * *









          Hearing Date:  June 24, 2009                             AB 1093 
          Consultant: Gideon L. Baum                               Page 4

          Senate Committee on Labor and Industrial Relations