Chapter 1. General Powers And Duties of California Labor Code >> Division 1. >> Chapter 1.
There is in the Labor and Workforce Development Agency the
Department of Industrial Relations.
One of the functions of the Department of Industrial
Relations is to foster, promote, and develop the welfare of the wage
earners of California, to improve their working conditions, and to
advance their opportunities for profitable employment.
The Department of Industrial Relations may assist and
cooperate with the Wage and Hour Division, and the Children's Bureau,
United States Department of Labor, in the enforcement within this
State of the Fair Labor Standards Act of 1938, and, subject to the
regulations of the Administrator of the Wage and Hour Division, or
the Chief of the Children's Bureau, and subject to the laws of the
State applicable to the receipt and expenditures of money, may be
reimbursed by the division or the bureau for the reasonable cost of
such assistance and cooperation.
(a) The Department of Industrial Relations is the state
agency designated to be responsible for administering the state plan
for the development and enforcement of occupational safety and health
standards relating to issues covered by corresponding standards
promulgated under the federal Occupational Safety and Health Act of
1970 (Public Law 91-596). The state plan shall be consistent with the
provisions of state law governing occupational safety and health,
including, but not limited to, Chapter 6 (commencing with Section
140) and Chapter 6.5 (commencing with Section 148) of Division 1, and
Division 5 (commencing with Section 6300), of this code.
(b) The budget and budget bill submitted pursuant to Article IV,
Section 12 of the California Constitution shall include in the item
for the support of the Department of Industrial Relations amounts
sufficient to fully carry out the purposes and provisions of the
state plan and this code in a manner which assures that the risk of
industrial injury, exposure to toxic substances, illness and death to
employees will be minimized.
(c) Because Federal grants are available, maximum Federal funding
shall be sought and, to the extent possible, the cost of
administering the state plan shall be paid by funds obtained from
federal grants.
(d) The Governor and the Department of Industrial Relations shall
take all steps necessary to prevent withdrawal of approval for the
state plan by the Federal government. If Federal approval of the
state plan has been withdrawn before passage of this initiative, or
if it is withdrawn at any time after passage of this initiative, the
Governor shall submit a new state plan immediately so that California
shall be approved and shall continue to have access to Federal
funds.
The department shall develop a long range program for
upgrading and expanding the resources of the State of California in
the area of occupational health and medicine. The program shall
include a contractual agreement with the University of California for
the creation of occupational health centers affiliated with regional
schools of medicine and public health. One such occupational health
center shall be situated in the northern part of the state and one in
the southern part. The primary function of these occupational health
centers shall be the training of occupational physicians and nurses,
toxicologists, epidemiologists, and industrial hygienists. In
addition, the centers shall serve as referral centers for
occupational illnesses and shall engage in research on the causes,
diagnosis, and prevention of occupational illnesses.
The centers shall also inform the Division of Occupational Safety
and Health Administration of the Department of Industrial Relations,
State Department of Health Services, and the Department of Food and
Agriculture of their clinical and research findings.
In furtherance of the provisions of Section 50.5, the
director, or the Director of Employment Development, may comment on
the impact of actions or projects proposed by public agencies on
opportunities for profitable employment, and such agencies shall
consider such comments in their decisions.
The department shall be conducted under the control of an
executive officer known as Director of Industrial Relations. The
Director of Industrial Relations shall be appointed by the Governor
with the advice and consent of the Senate and hold office at the
pleasure of the Governor and shall receive an annual salary provided
for by Chapter 6 (commencing with Section 11550) of Part 1 of
Division 3 of Title 2 of the Government Code.
Except as otherwise prescribed in this code, the provisions of
the Government Code relating to departments of the State shall govern
and apply to the conduct of the department.
Whenever in Section 1001 or in Part 1 (commencing with Section
11000) of Division 3 of Title 2 of the Government Code "head of the
department" or similar designation occurs, the same shall, for the
purposes of this code, mean the director, except that in respect to
matters which by the express provisions of this code are committed to
or retained under the jurisdiction of the Division of Workers'
Compensation, the State Compensation Insurance Fund, the Occupational
Safety and Health Standards Board, the Occupational Safety and
Health Appeals Board, or the Industrial Welfare Commission the
designation shall mean the Division of Workers' Compensation, the
Administrative Director of the Division of Workers' Compensation, the
Workers' Compensation Appeals Board, the State Compensation
Insurance Fund, the Occupational Safety and Health Standards Board,
the Occupational Safety and Health Appeals Board, or the Industrial
Welfare Commission, as the case may be.
The director shall perform all duties, exercise all powers and
jurisdiction, assume and discharge all responsibilities, and carry
out and effect all purposes vested by law in the department, except
as otherwise expressly provided by this code.
The director may appoint an attorney and assistants licensed
to practice law in this state. In the absence of an appointment, the
attorney for the Division of Workers' Compensation shall also perform
legal services for the department as the Director of Industrial
Relations may direct.
For the purpose of administration the director shall organize
the department subject to the approval of the Governor, in the manner
he deems necessary properly to segregate and conduct the work of the
department. Notwithstanding any provision in this code to the
contrary, the director may require any division in the department to
assist in the enforcement of any or all laws within the jurisdiction
of the department. Except as provided in Section 18930 of the Health
and Safety Code, the director may, in accordance with the provisions
of Chapter 4.5 (commencing with Section 11371), Part 1, Division 3,
Title 2 of the Government Code, make rules and regulations that are
reasonably necessary to carry out the provisions of this chapter and
to effectuate its purposes. The provisions of this section, however,
shall not apply to the Division of Workers' Compensation or the State
Compensation Insurance Fund, except as to any power or jurisdiction
within those divisions as may have been specifically conferred upon
the director by law.
The work of the department shall be divided into at least five
divisions known as the Division of Workers' Compensation, the
Division of Occupational Safety and Health, the Division of Labor
Standards Enforcement, the Division of Apprenticeship Standards, and
the State Compensation Insurance Fund.
Each division shall be in charge of a chief who shall be
appointed by the Governor and shall receive a salary fixed in
accordance with law, and shall serve at the pleasure of the director.
(a) The Chief of the Division of Occupational Safety and
Health shall receive an annual salary as provided by Chapter 6
(commencing with Section 11550) of Part 1 of Division 3 of Title 2 of
the Government Code.
(b) All officers or employees of the Division of Occupational
Safety and Health employed after the operative date of this section
shall be appointed by the director in accordance with the provisions
of the State Civil Service Act. Notwithstanding the foregoing, two
deputy chiefs of the Division of Occupational Safety and Health shall
be appointed by the Governor, with the advice of the Director of
Industrial Relations, to serve at the pleasure of the Director of
Industrial Relations. The two deputy chiefs shall be exempt from
civil service. The annual salaries of the two exempted deputy chiefs
shall be fixed by the Director of Industrial Relations, subject to
the approval of the Director of Finance.
All duties, powers, and jurisdiction relating to the
administration of the State Compensation Insurance Fund shall be
vested in the Board of Directors of the State Compensation Insurance
Fund.
The department shall have possession and control of all
records, books, papers, offices, equipment, supplies, moneys, funds,
appropriations, land, and other property, real or personal, held for
the benefit or use of all commissions, divisions, and offices of the
department and the title to all such property held for the use and
benefit of the State is hereby transferred to the State.
The department through its appropriate officers shall
administer and enforce all laws imposing any duty, power, or function
upon the offices or officers of the department.
Except as otherwise provided, the provisions of Divisions 4 and
4.5 of this code shall be administered and enforced by the Division
of Workers' Compensation.
(a) The provisions of Part 1 of Division 5 of this code shall
be administered and enforced by the department through the Division
of Occupational Safety and Health, subject to the direction of the
director pursuant to Section 50.7.
(b) The Division of Occupational Safety and Health succeeds to,
and is vested with, all of the powers, duties, purposes,
responsibilities, and jurisdiction of the Division of Industrial
Safety, which is hereby abolished, and any other jurisdiction
conferred by law.
(c) All powers, duties, and responsibilities of the Chief of the
Division of Industrial Safety are hereby transferred to the Chief of
the Division of Occupational Safety and Health.
(d) Any regulation or other action made, prescribed, issued,
granted, or performed by the abolished Division of Industrial Safety
in the administration of a function transferred pursuant to
subdivision (b) shall remain in effect and shall be deemed to be a
regulation or action of the Division of Occupational Safety and
Health unless and until repealed, modified, or rescinded by such
division.
(e) Whenever any reference is made in any law to the abolished
Division of Industrial Safety, it shall be deemed to be a reference
to, and to mean, the Division of Occupational Safety and Health.
All persons serving in the state civil service in the
Division of Industrial Safety or in the Occupational Health Branch of
the State Department of Health Services, and engaged in the
performance of a function transferred to the Division of Occupational
Safety and Health shall, in accordance with Section 19370 of the
Government Code, remain in the state civil service and are hereby
transferred to the Department of Industrial Relations. The status,
positions, and rights of such persons shall not be affected by their
transfer and shall continue to be retained by them pursuant to the
State Civil Service Act, except as to positions the duties of which
are vested in a position that is exempt from civil service.
The Division of Occupational Safety and Health shall have
possession and control of all records, books, papers, offices,
equipment, supplies, moneys, funds, appropriations, land, licenses,
permits, agreements, contracts, claims, judgments, and other
property, real or personal, held for the benefit or use of the
Division of Industrial Safety and the Occupational Health Branch of
the State Department of Health Services with respect to the functions
of those organizations that are transferred to the Division of
Occupational Safety and Health.
The Division of Occupational Safety and Health may expend
money appropriated for the administration of the laws the enforcement
of which is committed to the division. Such expenditures by the
division shall be made in accordance with law in carrying out the
purposes for which the appropriations were made.
There is within the Division of Occupational Safety and
Health an occupational health unit and an occupational safety unit,
which shall assist in the performance of occupational health
functions and occupational safety functions, respectively, assigned
to the division by law. There is also within the occupational health
unit an occupational carcinogen control unit responsible for
implementing the division's obligations pursuant to the Occupational
Carcinogens Control Act of 1976 (Part 10 (commencing with Sec.
9000)). The division, in performing its responsibilities under this
code, shall provide for laboratory services and service personnel
with respect to occupational health matters by interagency agreement
with the State Department of Health Services or another public
entity, by contract with a private sector laboratory, or by
establishment of a laboratory within the division, or by a
combination thereof. In the event that the division contracts with
the private sector for laboratory services, the division shall enter
into an interagency agreement with the State Department of Health
Services for quality control and performance evaluation of the
contract laboratory as well as analysis of nonroutine laboratory
samples.
The provisions of Chapter 1 (commencing with Section 1171) of
Part 4 of Division 2 shall be administered and enforced by the
department through the Division of Labor Standards Enforcement.
The department may expend money appropriated for the
administration of the provisions of the laws, the enforcement of
which is committed to the department. The department may expend such
money for the use, support, or maintenance of any commission or
office of the department. Such expenditures by the department shall
be made in accordance with law in carrying on the work for which such
appropriations were made.
(a) (1) The Workers' Compensation Administration Revolving
Fund is hereby created as a special account in the State Treasury.
Money in the fund may be expended by the department, upon
appropriation by the Legislature, for all of the following purposes,
and may not be used or borrowed for any other purpose:
(A) For the administration of the workers' compensation program
set forth in this division and Division 4 (commencing with Section
3200), other than the activities financed pursuant to paragraph (2)
of subdivision (a) of Section 3702.5.
(B) For the Return-to-Work Program set forth in Section 139.48.
(C) For the enforcement of the insurance coverage program
established and maintained by the Labor Commissioner pursuant to
Section 90.3.
(2) The fund shall consist of surcharges made pursuant to
paragraph (1) of subdivision (f).
(b) (1) The Uninsured Employers Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the payment of nonadministrative expenses of the workers'
compensation program for workers injured while employed by uninsured
employers in accordance with Article 2 (commencing with Section 3710)
of Chapter 4 of Part 1 of Division 4, and shall not be used for any
other purpose. All moneys collected shall be retained in the trust
fund until paid as benefits to workers injured while employed by
uninsured employers. Nonadministrative expenses include audits and
reports of services prepared pursuant to subdivision (b) of Section
3716.1. The surcharge amount for this fund shall be stated
separately.
(2) Notwithstanding any other provision of law, all references to
the Uninsured Employers Fund shall mean the Uninsured Employers
Benefits Trust Fund.
(3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Uninsured Employers
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Uninsured Employers Benefits
Trust Fund upon enactment of the annual Budget Act.
(4) Any moneys from penalties collected pursuant to Section 3722
as a result of the insurance coverage program established under
Section 90.3 shall be deposited in the State Treasury to the credit
of the Workers' Compensation Administration Revolving Fund created
under this section, to cover expenses incurred by the director under
the insurance coverage program. The amount of any penalties in excess
of payment of administrative expenses incurred by the director for
the insurance coverage program established under Section 90.3 shall
be deposited in the State Treasury to the credit of the Uninsured
Employers Benefits Trust Fund for nonadministrative expenses, as
prescribed in paragraph (1), and notwithstanding paragraph (1), shall
only be available upon appropriation by the Legislature.
(c) (1) The Subsequent Injuries Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the nonadministrative expenses of the workers' compensation
program for workers who have suffered serious injury and who are
suffering from previous and serious permanent disabilities or
physical impairments, in accordance with Article 5 (commencing with
Section 4751) of Chapter 2 of Part 2 of Division 4, and Section 4 of
Article XIV of the California Constitution, and shall not be used for
any other purpose. All moneys collected shall be retained in the
trust fund until paid as benefits to workers who have suffered
serious injury and who are suffering from previous and serious
permanent disabilities or physical impairments. Nonadministrative
expenses include audits and reports of services pursuant to
subdivision (c) of Section 4755. The surcharge amount for this fund
shall be stated separately.
(2) Notwithstanding any other law, all references to the
Subsequent Injuries Fund shall mean the Subsequent Injuries Benefits
Trust Fund.
(3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Subsequent Injuries
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Subsequent Injuries Benefits
Trust Fund upon enactment of the annual Budget Act.
(d) (1) The Occupational Safety and Health Fund is hereby created
as a special account in the State Treasury. Moneys in the account may
be expended by the department, upon appropriation by the
Legislature, for support of the Division of Occupational Safety and
Health, the Occupational Safety and Health Standards Board, and the
Occupational Safety and Health Appeals Board, and the activities
these entities perform as set forth in this division, and Division 5
(commencing with Section 6300).
(2) On and after the effective date of the act amending this
section to add this paragraph in the 2013-14 Regular Session of the
Legislature, any moneys in the Cal-OSHA Targeted Inspection and
Consultation Fund and any assets, liabilities, revenues,
expenditures, and encumbrances of that fund, less five million
dollars ($5,000,000), shall be transferred to the Occupational Safety
and Health Fund. On June 30, 2014, the remaining five million
dollars ($5,000,000) in the Cal-OSHA Targeted Inspection and
Consultation Fund, or any remaining balance in that fund, shall be
transferred to, and become part of, the Occupational Safety and
Health Fund.
(e) The Labor Enforcement and Compliance Fund is hereby created as
a special account in the State Treasury. Moneys in the fund may be
expended by the department, upon appropriation by the Legislature,
for the support of the activities that the Division of Labor
Standards Enforcement performs pursuant to this division and Division
2 (commencing with Section 200), Division 3 (commencing with Section
2700), and Division 4 (commencing with Section 3200). The fund shall
consist of surcharges imposed pursuant to paragraph (3) of
subdivision (f).
(f) (1) Separate surcharges shall be levied by the director upon
all employers, as defined in Section 3300, for purposes of deposit in
the Workers' Compensation Administration Revolving Fund, the
Uninsured Employers Benefits Trust Fund, the Subsequent Injuries
Benefits Trust Fund, and the Occupational Safety and Health Fund. The
total amount of the surcharges shall be allocated between
self-insured employers and insured employers in proportion to payroll
respectively paid in the most recent year for which payroll
information is available. The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. The
regulations shall require the surcharges to be paid by self-insurers
to be expressed as a percentage of indemnity paid during the most
recent year for which information is available, and the surcharges to
be paid by insured employers to be expressed as a percentage of
premium. In no event shall the surcharges paid by insured employers
be considered a premium for computation of a gross premium tax or
agents' commission. In no event shall the total amount of the
surcharges paid by insured and self-insured employers exceed the
amounts reasonably necessary to carry out the purposes of this
section.
(2) The surcharge levied by the director for the Occupational
Safety and Health Fund, pursuant to paragraph (1), shall not generate
revenues in excess of fifty-seven million dollars ($57,000,000) on
and after the 2013-14 fiscal year, adjusted for each fiscal year as
appropriate to fund any increases in the appropriation as approved by
the Legislature, and to reconcile any over/under assessments from
previous fiscal years pursuant to Sections 15606 and 15609 of Title 8
of the California Code of Regulations. For the 2013-14 fiscal year
only, the revenue cap established in this paragraph shall be reduced
by an amount equivalent to the balance transferred from the Cal-OSHA
Targeted Inspection and Consultation Fund established in Section
62.7, less any amount of that balance loaned to the State Public
Works Enforcement Fund, to the Occupational Safety and Health Fund
pursuant to subdivision (d).
(3) A separate surcharge shall be levied by the director upon all
employers, as defined in Section 3300, for purposes of deposit in the
Labor Enforcement and Compliance Fund. The total amount of the
surcharges shall be allocated between employers in proportion to
payroll respectively paid in the most recent year for which payroll
information is available. The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. In
no event shall the total amount of the surcharges paid by employers
exceed the amounts reasonably necessary to carry out the purposes of
this section.
(4) The surcharge levied by the director for the Labor Enforcement
and Compliance Fund shall not exceed forty-six million dollars
($46,000,000) in the 2013-14 fiscal year, adjusted as appropriate to
fund any increases in the appropriation as approved by the
Legislature, and to reconcile any over/under assessments from
previous fiscal years pursuant to Sections 15606 and 15609 of Title 8
of the California Code of Regulations.
(5) The regulations adopted pursuant to paragraph (1) to (4),
inclusive, shall be exempt from the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(a) The director shall levy and collect assessments from
employers in accordance with subdivision (b), as necessary, to
collect the aggregate amount determined by the Fraud Assessment
Commission pursuant to Section 1872.83 of the Insurance Code.
Revenues derived from the assessments shall be deposited in the
Workers' Compensation Fraud Account in the Insurance Fund and shall
only be expended, upon appropriation by the Legislature, for the
investigation and prosecution of workers' compensation fraud and the
willful failure to secure payment of workers' compensation, as
prescribed by Section 1872.83 of the Insurance Code.
(b) Assessments shall be levied by the director upon all employers
as defined in Section 3300. The total amount of the assessment shall
be allocated between self-insured employers and insured employers in
proportion to payroll respectively paid in the most recent year for
which payroll information is available. The director shall promulgate
reasonable rules and regulations governing the manner of collection
of the assessment. The rules and regulations shall require the
assessment to be paid by self-insurers to be expressed as a
percentage of indemnity paid during the most recent year for which
information is available, and the assessment to be paid by insured
employers to be expressed as a percentage of premium. In no event
shall the assessment paid by insured employers be considered a
premium for computation of a gross premium tax or agents' commission.
Five million dollars ($5,000,000) is hereby appropriated for
transfer by the State Controller upon order of the Director of
Finance from the Cal-OSHA Targeted Inspection and Consultation Fund
as a loan to the State Public Works Enforcement Fund. This loan shall
be repaid to the Occupational Safety and Health Fund by June 30,
2015. This loan shall be repaid with interest calculated at the rate
earned by the Pooled Money Investment Account at the time of the
transfer.
The Director may authorize the refund of moneys received or
collected by the department in payment of license fees or for other
services in cases where the license can not lawfully be issued or the
service rendered to the applicant.
The Labor Commissioner may enter into reciprocal agreements
with the labor department or corresponding agency of any other state
or with the person, board, officer, or commission authorized to act
for and on behalf of that department or agency, for the collection in
that other state of claims or judgments for wages and other demands
based upon claims previously assigned to the Division of Labor
Standards Enforcement.
When requested by the State Board of Equalization, the
department may permit any duly authorized representative of that
agency to transmit to the State Board of Equalization information
available in the department's records that indicates a retail
establishment is operating without a seller's permit required by the
State Board of Equalization, to assist the State Board of
Equalization in determining compliance with the Sales and Use Tax Law
(Part 1 (commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code).