Newsline No. 05-12
June 19, 2012
OSIP issues default order against Administrative Concepts Corp.
Sacramento—The Department of Industrial Relations’ (DIR) Office of Self Insurance Plans (OSIP) issued an Order of Default on June 19, 2012 in the matter of Administrative Concepts Corp., a California self-insured employer. OSIP has learned that Administrative Concepts failed to make workers’ compensation payments to their injured workers in violation of requirements of the California Labor Code. Administrative Concepts Corp., a professional employer organization (PEO) engaged in employee leasing, is a wholly-owned subsidiary of Four Corners of Excellence, Inc. Both are Florida corporations.
“OSIP’s primary purpose is to insure that all injured workers of self-insured employers receive the workers’ compensation benefits they are entitled to by law,” said Jon Wroten, chief of OSIP. “It is troubling when an employer defaults and fails to meet their obligations to injured workers; however, that is why we have protections in place to guard against these instances.”
When a self-insured employer fails to meet their statutory obligations to their injured workers, the chief of OSIP, acting on behalf of the director of the Department of Industrial Relations, issues an order finding the employer in default. This order clears the way for OSIP to take control of the injured worker claims obligations and ensure that the rights and benefit payments to the injured workers are made. The default order further allows OSIP to seize the security deposit posted as collateral by the self-insured employer to insure the continuance of benefit payments.
OSIP maintains a security deposit as collateral for each self-insured employer exactly for situations like this. Typically in the event of a default, the obligations and estate once defaulted are transferred to the Self Insured Security Fund (SISF) for administration along with any collateral being held to cover injured worker benefit payments. The SISF was statutorily created by the Legislature to guarantee the payment of workers’ compensation benefits to employees of self-insured employers in the event of a default. OSIP and SISF work in partnership with the goal of protecting injured workers in California.
OSIP’s website can be accessed at http://www.dir.ca.gov/sip/sip.html.
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