Authorities as the decision cited them, with how this panel applied each one.
Labor Code section 5402
Presumption of compensability under Labor Code section 5402 applies if liability is not rejected within 90 days after claim filing.
The denial letter was issued more than 90 days after claim filing, so presumption applied.
From the decision · page 17B. PRESUMPTION OF COMPENSABILITY
Labor Code Section 5402 (a) states: “ Knowledge of an injury, obtained from any source,
on the part of an employer, his or her managing agent, superintendent, foreman, or other person in
authority, or knowledge of the assertion of a claim of injury sufficient to afford opportunity to the
employer to make an investigation into the facts, is equivalent to service under Section 5400. “
Reyes testified that when he fell off the ladder at Sephora on 3/14/24 that he called Mark to tell
him that he could not finish the job because he was injured. However, Reyes also testified that he
fainted during this incident and did not have a clear recollection of what occurred. He heard
someone say, “Call 9-1-1” and he head the paramedics say, “Wake up” (MOH SOE 10/30/25 3:20-
25, 4:1-2).
Labor Code section 2750.5
Labor Code section 2750.5 establishes presumption that a worker requiring a license is an employee rather than independent contractor.
Applicant was found to be an employee under this section because defendant did not prove independent contractor status.
From the decision · page 4his principal as to the result of his work only and not as to the means by which such result is
accomplished.” (Lab. Code, § 3353.) Consequently, unless the hirer can demonstrate that the
worker meets specific criteria to be considered an independent contractor, all workers are
presumed to be employees. Here, defendant did not meet its burden that applicant is an independent
contractor.
Another consideration is that workers’ compensation insurance coverage is required for all
those who employ one or more employees. (Bus. & Prof. Code, § 7125.2; Wright v. Issak (2007)
149 Cal.App.4th 1116 [72 Cal.Comp.Cases 438].) With respect to contractors on construction
projects, Labor Code section 2750.5 applies in workers’ compensation cases, and Labor Code
section 3351, subdivision (d) is read together with section 2750.5. (Cedillo v. Workers’ Comp.
Appeals Bd. (2003) 106 Cal.App.4th 227, 232-233 [68 Cal.Comp.Cases 140]; State Comp. Ins.
Fund v. Workers’ Comp. Appeals Bd. (Meier) (1985) 40 Cal.3d 5 [50 Cal.Comp.Cases 562].)
“There is a rebuttable presumption affecting the burden of proof that a worker performing services
for which a license is required... or who is performing such services for a person who is required
to obtain such a license is an employee rather than an independent contractor...” (Lab.
Labor Code section 5909
Labor Code section 5909 requires the Appeals Board to act on petitions for reconsideration within 60 days of case transmission.
The Board acted within 60 days, so the petition was timely decided.
From the decision · page 2Former Labor Code 1 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, section 5909 was amended to state in relevant part that:
(a) A petition for reconsideration is deemed to have been denied by the appeals
board unless it is acted upon within 60 days from the date a trial judge transmits a
case to the appeals board.
Labor Code section 3600(a)
Labor Code section 3600(a) provides employer liability for injuries arising out of and in the course of employment without regard to negligence.
Applicant's injury arose out of and in the course of employment, so employer is liable.
From the decision · page 5233; Hernandez v. Chavez Roofing, Inc. (1991) 235 Cal.App.3d 1092 [56 Cal.Comp.Cases
650]; Rinaldi, supra.)
Here, defendant argued that the subcontractor agreement was applicable, but did not offer
any evidence that applicant was insured for workers’ compensation, and thus, applicant is also an
employee on that basis.
III.
Section 3600(a) provides for liability for injuries sustained “arising out of and in the course
of the employment.” An employer is liable for workers’ compensation benefits “without regard to
negligence.” (Lab. Code, § 3600(a).) Whether an employee’s injury arose out of and in the course
of employment is generally a question of fact to be determined in light of the particular
circumstances of the case. (Wright v. Beverly Fabrics (2002) 95 Cal.App.4th 346, 353 [67
Cal.Comp.Cases 51].)
Decisions of the Appeals Board must be supported by substantial evidence. (Lab. Code, §§
5903, 5952(d); Lamb v. Workmen's Comp. Appeals Bd. (1974) 11 Cal.3d 274, 281 [39
Cal.Comp.Cases 310]; Garza v. Workmen's Comp. Appeals Bd. (1970) 3 Cal.3d 312, 317 [35
Cal.Comp.Cases 500]; LeVesque v. Workmen's Comp. Appeals Bd. (1970) 1 Cal.3d 627, 635 [35
Cal.Comp.Cases 16].)
Applicant testified that, while working for defendant fixing the metal arm at the top of a
broken door, a screw from the metal part fell and struck him in the eye.