California Regulations 10112

• Section amended effective May 20, 2009

The audit subject is liable for all penalty assessments, except that if the audit subject is acting as a third-party administrator, the client of that third-party administrator which secures the payment of compensation is jointly and severally liable with the administrator for all penalty assessments except civil penalties imposed under Labor Code section 129.5(e). Without affecting DWC's rights, a third-party administrator and its client may agree how to allocate the audit penalty expense between them.

Authority: Sections 59, 129.5, 133 and 5307.3, Labor Code. Reference: Section 129, 129.5, 3200- 6002, Labor Code.