Smith v. Workers' Compensation Appeals Board

In this opinion, we consider the formula for determining when parents should be considered “partial dependents” of their adult children living at home, for purposes of recovering death benefits. We conclude that the deceased must provide a net financial benefit to the household, deducting first those costs attributable solely to the deceased.

*562 When a worker dies with no dependents, the employer is required by Labor Code section 4706.5, subdivision (a) 1 to pay an equivalent death benefit to the Department of Industrial Relations (DIR) for addition to the Subsequent Injuries Fund (SIF) (see subd. (c)). The amount paid to DIR is equal to the death benefit paid when the deceased leaves one person totally dependent and no partial dependents, currently set at $125,000 by section 4702, subdivision (a)(3).

In this case, an unmarried worker living with his parents died from industrial causes. His parents elected not to pursue a claim that they were dependent upon him. However, the employer filed a dependency claim on their behalf. The Workers’ Compensation Appeals Board (Board) agreed with the employer that, by paying Lori and Lawrence Walker $150 per month as rent, Joshua…