Panel Finds Corporate Veil Shields Claimant From Lien Stay

Three Workers’ Compensation Appeals Board commissioners found that criminal charges against a director of a parent corporation don’t necessarily trigger the stay on liens filed by a subsidiary, but identified other unanswered questions about what exactly California lawmakers wanted with the anti-fraud measures passed in 2016 and 2017. The Legislature in 2016 enacted statutes requiring the Division of Workers’ Compensation to automatically stay any lien filed by or on behalf of a criminally charged provider. Lawmakers the same year also directed the division to...