Kimco Staffing Services v. St. of CA
Annotate this CasePlaintiffs appeal a judgment of dismissal following an order sustaining without leave to amend a demurrer by defendants. At issue is whether Labor Code section 3701.9 violates equal protection because it treats temporary services employers (TSE’s) and leasing employers (LE’s) differently from other employers, who are permitted to self-insure. The court concluded that a rational basis exists for treating TSE’s and LE’s differently from other employers with respect to self-insurance. In this case, the potential for a rapid increase in the number of employees, coupled with the delay in adjusting the amount of the self-insurance security deposit, is a rational basis for excluding TSE’s and LE’s from the workers’ compensation self insurance program.
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