Yesterday, we introduced the case of Frank Estrada—a volunteer police reserve officer in Los Angeles who received workers’ comp benefits after being injured on the job. Did these benefits turn him into an actual “employee” for purposes of a bias suit he later filed? Read on to find out.
For the backstory of the case, click here.
Workers’ comp coverage doesn’t confer employee status, court says
To recover under FEHA’s employment discrimination provisions, the claimant must be an employee. And, as the Court of Appeals explained, to be an employee, an individual must receive some type of remuneration.
The court noted that the Los Angeles Administrative Code provides that police reserve officers are considered employees of the city for the limited purpose of receiving workers’ compensation benefits. But it concluded that these benefits don’t amount to remuneration that gives rise to employee status.
The court pointed out that the city categorizes reserve officers as employees for workers’ comp benefits even though the Workers’ Compensation Act excludes from its definition of employee volunteers for public agencies—or private, nonprofit organizations—who receive "no remuneration for [their] services other than meals, transportation, lodging, or reimbursement for incidental expenses."
Get the complete guide to workers’ comp in California—now fully updated for 2014! Learn more.
According to the court, the city’s policy decision to extend workers’ comp coverage to uncompensated volunteers did not convert the volunteers into employees for all purposes. That the city provides workers’ comp benefits to volunteers who sustain work injuries doesn’t change the fact that they serve without remuneration and therefore aren’t employees under FEHA.
The court acknowledged the "significant value" of workers’ compensation benefits but stated that the benefits, similar to the recurring $50 reimbursement for out-of-pocket expenses, simply serve to compensate for losses in the event a volunteer becomes injured while performing his or her duties.
Such benefits don’t amount to financial benefit or remuneration; they merely make the volunteer "whole." (Estrada v. City of Los Angeles, Calif. Court of Appeals (Dist. 2) No. B242202, 2013)
Practice Tip: Be Careful!
Note that substantial indirect compensation—for example, health or life insurance, pension benefits, or vacation or sick pay—can qualify as remuneration that makes a volunteer an employee under FEHA.
Workers’ Comp: Tricky Under the Best of Circumstances
Dealing with workers’ comp questions can be stressful and time-consuming for HR, to put it mildly—even if you aren’t trying to figure out whether a worker is an employee or a volunteer.
What can make it easier? Our exclusive HR Management & Compliance Report Workers’ Compensation in California: A Complete Guide for California Employers.
Workers’ comp is one of the few areas of employment law that’s almost entirely governed at the state level. And it’s complicated, to say the least:
- What qualifies as a covered injury or illness?
- Should you self-insure?
- Who’s entitled to workers’ comp benefits?
- What do you need to know about the State Compensation Insurance Fund (SCIF)?
- How are premiums calculated—and how can you keep yours as low as possible?
- What should be included in your Injury & Illness Prevention Program (IIPP)?
- Which workers’ comp notices must you distribute to employees—and when?
- How do you properly calculate benefits for injured employees?
- What should your return-to-work program look like?
- How does workers’ comp interact with other state and federal leave laws, including FMLA/CFRA and ADA/FEHA?
- What can you do to reduce the risk of workers’ comp disputes—and fraud?
- How should you respond to a workers’ comp-related lawsuit?
Fortunately, answers to all of these questions and more are covered in depth in our comprehensive, 138-page HR Management & Compliance Report Workers’ Compensation in California: A Complete Guide for California Employers.
This exclusive report includes everything you need to know for successful management of your company’s workers’ comp program and has been fully updated for 2014. Order your copy today—your satisfaction is 100 percent guaranteed.
Download your copy of How To Survive an Employee Lawsuit: 10 Tips for Successtoday!
It’s a shame that trying to be generous to a volunteer can backfire on you.