What the panel ordered
Petition for Reconsideration denied.
Petition for Reconsideration filed by defendant employer challenging jurisdiction and application of California law; WCJ report recommending denial of reconsideration; WCAB panel decision denying reconsideration.
What was disputed, and how it came out
Each issue the panel decided, with the reasoning it gave. An outcome is what this panel did on this record — not a rule, and not a prediction.
The Appeals Board has personal jurisdiction over the employer and subject matter jurisdiction because the injury occurred in California, the applicant is a California resident, and the contract of employment was accepted in California. The forum selection agreement favoring Nevada is unenforceable due to California's strong governmental interest in protecting its residents injured in California.
From the decision · page 4MC Carrier, LLC (hereafter defendant or employer) a self-insured employer under the laws of the state of Nevada, has filed a timely, verified Petition for Reconsideration dated July 1, 2024, challenging the Findings and Order dated June 13, 2024, determining that California has jurisdiction over the work injury sustained by the applicant (hereafter Applicant) on September 30, 2022, and that California law should apply. Defendant contends that the court erroneously exceeded its jurisdiction by finding the following:
The facts that decided it
What the panel treated as outcome-determinative, and which side it favoured.
Applicant is a California resident injured in California.
Favours Applicant prevailed
Establishes subject matter jurisdiction under Labor Code Sections 5300 and 5301.
From the decision · page 5Applicant submitted to personal jurisdiction of the appeals board by filing the application dated November 23, 2022 (EAMS ID 44027599). He is, at all times in this case, a resident of the state of California (MOH Stipulation 7, Page 2, Lines 14-14.5). The injury claimed was a specific event which occurred in California (MOH September 13, 2023, Stipulation 9, Page 2, line 17).
Employer conducted approximately 10% of its business in California and had sufficient minimum contacts.
Favours Applicant prevailed
Establishes personal jurisdiction over the employer.
From the decision · page 5An out of state employer submits to the personal jurisdiction of the appeals board by engaging in "minimum contacts" with the state of California. The test may be met by a wide range of activities within the state or where the activities that it does engage in, specifically relate to the subject matter of the litigation (Buckner v. IAC (1964) 29 CCC 77; Safety Lab, Inc. v Weinberger (1987) 193 Cal. App. 3d. 1050). The employer conducts approximately ten (10%) of their total business in the state of California (MOH April 10, 2024, Page 3, Lines 16-16.5). An employer owned truck was used to pick up applicant in California to bring him to Las Vegas, Nevada to sign some employment documents and to get his company truck on July 29, 2022. (MOH April 10, 2024, Page 3, Lines 12-14.) The company truck driven by applicant was stored in California at applicant's residence and all trips started and ended there (MOH September 13, 2023, Page 4, Lines 3.5-6).
Contract of employment was accepted in California by applicant signing the initial contract at home.
Favours Applicant prevailed
Supports California's jurisdiction and application of its law over the employment contract.
From the decision · page 4II. FACTS the applicant (hereafter Applicant) signed an employment contract July 26, 2022 (Exhibit E) with MC Carrier LLC (hereafter defendant, employer or MC Carrier). He signed it from his home in Victorville, California on that date, but it did not include the Pay Rate Agreement (Exhibit F) or the Election for Nevada Compensation (hereafter Election, Election Agreement or Forum Election) (Exhibit B) (MOH September 13, 2023, Page 5, lines 9.5 to 10.5). Defendant contends that the contract of employment was accepted in Nevada rather than California. The Pay Rate Agreement and the election were not signed until July 29, 2022, when applicant was in Las Vegas at the employer's office (MOH September 13, 2023, Page 5, lines
Forum selection agreement favoring Nevada is unenforceable due to California's strong governmental interest in protecting its residents injured in California.
Favours Applicant prevailed
Overrides defendant's argument for Nevada jurisdiction and law application.
From the decision · page 11California courts have repeatedly expressed a strong governmental interest in applying its workers' compensation laws to persons injured under circumstances where it is disputed that the state has workers' compensation jurisdiction (Travelers Insurance Company v. WCAB (Coakley), at 530, supra.; Rocor Transportation v. WCAB (Hogan) (1999) 64 CCC 1117) (Writ Denied). In Coakley, the court explained California's interests in applying its workers' compensation law as follows:
The rules the panel named
Authorities as the decision cited them, with how this panel applied each one.
Labor Code Section 5909
Appeals Board must act on petition for reconsideration within 60 days of transmission of case to Appeals Board.
The decision was issued on the 60th day after transmission, thus timely acting on the petition.
From the decision · page 1Former Labor Code section 5909 provided that a petition for reconsideration was deemed denied unless the Appeals Board acted on the petition within 60 days from the date of filing. (Lab. Code, § 5909.) Effective July 2, 2024, Labor Code section 5909 was amended to state in relevant part that:
Labor Code Sections 5300, 5301, 133
Appeals Board has personal jurisdiction over parties and subject matter jurisdiction over issues where injury occurs in California and employer has minimum contacts with California.
The employer conducted 10% of business in California, applicant was injured in California, and the contract was accepted in California, establishing jurisdiction.
From the decision · page 5MC Carrier, LLC is challenging the jurisdiction of the Appeals Board to adjudicate issues related to the payment of workers' compensation benefits for the injury sustained by applicant. In order to address the issues, it needs to be established that the appeals board has personal jurisdiction over the parties, and subject matter jurisdiction over the issues.
Labor Code Section 3202
Workers' compensation laws are to be liberally construed to extend benefits to injured employees.
The contract of employment was accepted in California and conditions subsequent do not negate jurisdiction.
From the decision · page 8...Also of significance is the command of section 3202 of the Labor Code that the workman's (Sic) compensation laws are to be liberally construed in order to extend their benefits to injured employees. In the instant case the Commission was justified in concluding that the contract of hire between Egan and Reynolds was made in California, on the theory that the union was the agent of Reynolds for the purpose of transmitting offers of employment to its members and, that Egan accepted Reynolds offer when he received his dispatch referral slip and departed for the job site. (Reynolds Electrical and Engineering, supra. at page 417).
Labor Code Section 925
California has a strong governmental interest in applying its workers' compensation laws to protect its residents injured in California, overriding forum selection agreements favoring other states.
California's interest in protecting its residents injured in California outweighs the forum selection agreement favoring Nevada.
From the decision · page 11California courts have repeatedly expressed a strong governmental interest in applying its workers' compensation laws to persons injured under circumstances where it is disputed that the state has workers' compensation jurisdiction (Travelers Insurance Company v. WCAB (Coakley), at 530, supra.; Rocor Transportation v. WCAB (Hogan) (1999) 64 CCC 1117) (Writ Denied). In Coakley, the court explained California's interests in applying its workers' compensation law as follows:
What proof carried it
The evidence the panel weighed, by kind.
Applicant was a California resident injured in California; employer conducted 10% of business in California; contract of employment was accepted in California; company truck was stored in California; applicant was licensed in California; applicant was brought from California to Nevada by employer vehicle to sign documents.
From the decision · page 5Applicant submitted to personal jurisdiction of the appeals board by filing the application dated November 23, 2022 (EAMS ID 44027599). He is, at all times in this case, a resident of the state of California (MOH Stipulation 7, Page 2, Lines 14-14.5). The injury claimed was a specific event which occurred in California (MOH September 13, 2023, Stipulation 9, Page 2, line 17).
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About this page
- A published decision of the California Workers' Compensation Appeals Board, taken apart by what it turned on. The Board publishes the decision itself; this page adds the extraction and quotes the passage behind every claim.
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