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Bill > SB847


CA SB847

Workers’ compensation: uninsured employer: transfer of real property.


summary

Introduced
02/21/2025
In Committee
06/05/2025
Crossed Over
05/29/2025
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to add Section 3720.2 to the Labor Code, relating to workers’ compensation.

AI Summary

This bill adds Section 3720.2 to the California Labor Code to address situations where uninsured employers or their substantial shareholders attempt to avoid workers' compensation liability by transferring real property. The bill authorizes the administrative director of the Division of Workers' Compensation to investigate property transfers made after an employee's injury to determine if the transfer was intended to retain a beneficial interest, effectively creating a "resulting trust" that would prevent the employer from evading financial responsibility. The director can make a prima facie finding that a resulting trust exists based on specific circumstances, such as the property being transferred as a gift, no transfer tax being paid, or the transfer being made to a personal associate with the intent to hinder collection of workers' compensation funds. If such a trust is determined to exist, a lien can be attached to the property. The bill provides a process for the transferor or transferee to request a hearing to challenge the director's determination, with the option to appeal to superior court. The goal is to prevent uninsured employers from fraudulently transferring property to avoid paying workers' compensation benefits, thereby protecting injured workers' rights to compensation.

Committee Categories

Budget and Finance, Business and Industry, Justice, Labor and Employment

Sponsors (1)

Last Action

Referred to Coms. on INS. and JUD. (on 06/05/2025)

bill text


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