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November 07, 2007



I am not sure abut the LAT story about the Great Park.

If he was convicted 20 years ago, paid his debt to society and since then has been a contributing member of society, clearly a good employee of Irvine, then what's the big deal?


Hanna: it's more a reflection of the mismanagement of the Great Park process than it is on the employee.



Response of Defendant, PacifiStaff, Inc., a Corporation, to the “Complaint for Injunctive Relief”, etc. filed on November 6, 2007, by the People of the State of California ex rel. Edmund G. Brown, Jr., as Attorney General of the State of California, Orange County Superior Court, Case No. 07CC11686.

PacifiStaff provides staffing solutions for blue collar companies, and enables them to reduce their workers’ compensation costs. PacifiStaff assists employers in establishing employee ownership programs, which allow employee-owners to voluntarily choose to be exempted from California’s troubled workers’ compensation system.

PacifiStaff has reviewed the Complaint filed by the Attorney General. PacifiStaff denies that the business model adopted by its clients in any way constitutes an unlawful or unfair business practice in violation of Section 17200 of California’s Business & Professions Code.

Contrary to the allegations in the Complaint, all workers who become beneficiaries of the business structure adopted by PacifiStaff clients do so on a knowing and voluntary basis. Workers who opt to not becoming “employee-owners” are not terminated from their employment. Such workers remain employed and continue to be afforded the protection of traditional workers’ compensation insurance coverage.

For those workers who elect to become employee-owners, full health insurance coverage is provided both as to injuries suffered on the job and off. Such coverage is provided on a no cost basis, and an injured worker does not have to prove that their employer was at fault or that the worker was not at fault in order to obtain benefits. The benefits provided include those which are available under California’s Workers’ Compensation Act, including but not limited to, medical treatment, temporary and permanent disability payments, and vocational rehabilitation.

Workers who choose to become employee-owners obtain substantial additional benefits not typically provided in a traditional employer-employee relationship. Such additional benefits, include but are not limited to, life and disability insurance.

As admitted in the Complaint, California Labor Code Section 3351 allows for the business model promoted by PacifiStaff. In this lawsuit, the Attorney General’s office characterizes as unlawful conduct which is not prohibited by law. Arguably, this is an issue for the legislature to address, not the Attorney General’s office.

Employers that adopt PacifiStaff’s business model do not seek to avoid their obligation to provide meaningful benefits to their workers. The Attorney General admits that his office is not aware of any workers whose injuries have gone untreated or who have not received appropriate benefits for such injuries. The People of the State of California are benefitted by PacifiStaff’s business model. Injury claims are diverted from California’s already overloaded workers’ compensation claims system.

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