May 15

(Note Date Change)

May Chapter Meeting

Joint Meeting with

NARI of Silicon Valley

6-8:30pm

Belmont Hardware

940 El Camino Real

Belmont, CA  94002

 

   

June12

June Chapter Meeting

6-8:30pm

Ann Sacks Tile & Stone, Inc.

2 Henry Adams St

San Francisco, CA  94103

 

 

July 10

July Chapter Meeting

6-8:30pm

California Closets

1716 Fourth Street

Berkeley, CA

94710

 

Executive Director:
Judy Tufo

Jeff Kann, UCDP
Houseworks, Inc.
 

  

We would like to extend our sincere thanks to our April Chapter meeting host and longtime Chapter member, Custom Kitchens by John Wilkins, Inc. in Oakland.

  

The meeting was splendid, with delicious food and beverage, plus it provided an effective networking opportunity for members and guests.  In addition to members, industry partners and representatives from the high tech industry were also in attendance.

On a different topic, below follows a response by one of our members to an Op Ed piece that appeared in our newsletter last month.  While our newsletter can provide a platform for discussions of issues relating to the remodeling industry, our chapter does not take a position with regard to those issues.  We encourage our members to consult with the appropriate professionals when matters such as these arise.  

  

  

 

Mark

  

  

  

April 22, 2013

 

 

Mr. Bryant Byrnes, Esq.

Law Offices of Bryant H. Byrnes

180 Grand Avenue, Suite 1550

Oakland, CA 94612

 

Re:  SFBA April 2013 NARI Newsletter

 

Dear Mr. Byrnes:

 

I am writing in response to your recent article, "Use of Temporary Employees Versus Leased Workers - Dangerous", which ran in the April, 2013 SFBA NARI Newsletter. 

 

We have a shared interest in minimizing the risks associated with the use of temporary staffing.  However, we are concerned that your article inaccurately characterizes the risk and offer this letter in response.
  

There are essentially two concerns raised.  The first relates to exposure from suits by temporary employees for their own injuries. The second relates to exposure for property or personal injuries cause by temporary employees.  Each is addressed below.
  

NARI companies in California are immune from suits by temporary workers supplied by a temporary staffing companies.

 

State workers' compensation laws provide benefits on a no-fault basis to employees accidentally injured on the job. The basic premise of these laws is that in return for such protection, employees are barred from suing their employer for damages. In other words, workers' compensation generally is the employee's exclusive remedy for workplace injuries. 

 

In a long line of cases, courts in most jurisdictions have extended the exclusive remedy provisions of state workers' compensation laws to staffing firm clients. In reaching this conclusion, courts have applied the common-law "loaned" (or "borrowed") servant doctrine, under which the client is viewed as a special employer (the staffing firm being the general employer) of the loaned worker. At least 13 states have codified this principle in their state statutes, and additional states have extended exclusive remedy protection to staffing firm clients through case law. 

 

California is no exception. California Labor Code subsections 3602(d)(1) and (2) provide exclusive remedy protection for clients. In other words, a staffing firm's workers' compensation policy will be the sole recourse for temporary employees accidentally injured on the job, and clients generally will be immune from suits brought against them by staffing firm employees for negligence in work site injury cases. In short, clients are protected by staffing firms' workers' compensation policies.

 

NARI companies can insolate themselves from exposure for damages arising out of the acts and omissions of temporary employees through contracting.

 

While the standard language in an insurance policy clearly states the actions of employees are covered and those categorized as temporary employees are not, there are other provisions of the insurance policy that mitigate against this risk.  Specifically, the "Contractual Liability" coverage will kick in where: 1) the insured is covered for liability they would normally have; and 2) the insured is covered for obligations agreed to in a contract. 

 

Therefore, to protect against exposure, NARI companies should do three things: 1) enter into contracts which confirm the reality that the temporary employees they obtain are working under their control and supervision; 2) take responsibility for integrating the temporary employee into all operational protocols to meet the spirit of the arrangement; and 3) ensure that there is an indemnity agreement that is fair and balanced given the intent for the need to use temporary employees.

 

Temporary employees are under the control and supervision of the businesses which employ them. So long as NARI companies take precautions as mentioned above, any Temporary Employee exclusion will be secondary to other provision in the insurance policy.

 

We hope that you will revisit your analysis and clarify your position with NARI members.  Or, please contact me if you would like to discuss the matter further.

Sincerely yours,

 

/s/

 

Joanna Monroe

Vice President

Deputy General Counsel

Chief Compliance and Risk Officer

TrueBlue, Inc.

  

For questions or comments on the CLP response, please contact:

  

Toby Karlitz | Market Manager | CLP Resources, Inc.

Office:  (510) 883-0669  |  Mobile:  (415) 305-6943

Email:  tkarlitz@clp.com