The Payroll Tax Cut – More Questions Than Answers

Should employers stop collecting the 6.2% levy that is the employee’s share of social security taxes for many workers? This weekend’s Executive Order by the President said that employers could do this starting September 1, 2020. But, to be clear, if employers stop withholding taxes, will Congress forgive the deferred payments? Remember, these are deferred…

Applied Underwriters’ California Ins Company More Controversial Acts

Amidst charges of unapproved and uncollateralized loans to affiliates, unapproved property transfers, the California Department of Insurance’s Conservation and Liquidation Office says it is drafting a unilateral “rehabilitation” plan for California Insurance Company (CIC). The plan will transfer its policies to another carrier and resolve the numerous filed lawsuits pending between Applied Underwriters / CIC…

Mediation in Light of COVID-19

Without question, COVID-19 has changed the way lawyers practice law and businesses resolve disputes. Whether that change will be temporary or permanent is yet to be seen. At the present time, many courts in California are closed or offer severely limited access and have restricted the ability to file all but the most time-sensitive matters,…

Nick Roxborough Discusses Newsom’s Workers’ Comp COVID-19 EO in WorkCompCentral

As California begins its phase-by-phase reopening process Friday, Gov. Gavin Newsom’s executive order creating a rebuttable COVID-19 presumption has cast a shadow of uncertainty for insurance carriers and employers. Governor Newsom’s long-awaited executive order creates a rebuttable presumption stating that all employees who contract COVID-19 at their place of work while at the direction of…

New Coronavirus Presumption Likely to Increase Premium Costs for Employers

Yesterday, Governor Gavin Newsom signed an executive order creating a rebuttable presumption that a California employee who contracts COVID-19 contracted it in the course of their employment.  This would entitle the employee to workers’ compensation benefits, unless the employer successfully proved they did not contract it at work.  In a normal workers’ compensation claim, the…

WARN Act and COVID-19

In these uncertain times, businesses are being forced to consider drastic measures to weather the current economic crisis, including potential reductions in the workforce.  However, businesses need to be aware of their obligations under both the federal and California Worker Adjustment and Retraining Notification (WARN) Act prior to implementing any mass layoff, relocation, or termination…