Smith v. Workers' Compensation Appeals Board

The Workers’ Compensation Appeals Board (WCAB) determined that respondent Byung Hoon Yoon, doing business as Universal Painting Company (Universal), was a licensed contractor despite his failure to obtain workers’ compensation insurance covering respondent Sung Mi Lee, and thus respondent Alma Piston Company, doing business as Tomadur Engine Company (Tomadur), which had hired Yoon, was not liable for workers’ compensation benefits paid to Lee. Stephen J. Smith, Director of the Department of Industrial Relations, acting in his capacity as administrator of the Uninsured Employers Fund (UEF), filed a petition for writ of review of the WCAB’s decision. We deny the petition.

Relevant Factual and Procedural Background

In May 1994, Yoon applied to the Contractors’ State License Board (CSLB) for a painting contractor’s license. Yoon’s application indicated that he would do business as an individual and that he was the sole owner. In support of his application, Yoon submitted a declaration that he had no employees, and was thus exempt from the requirement under Business and Professions Code section 7125 to secure a certificate of workers’ compensation insurance. On May 13, 1995,…