Jones

This case arises from a dispute over a year-end audit by respondent State Compensation Insurance Fund (SCIF) of appellant ReadyLink Healthcare, Inc.’s (ReadyLink) payroll to determine its 2005 *1169 premium for its workers’ compensation insurance policy. 1 The SCIF assessed an additional premium of $555,327.53 based on its determination that ReadyLink’s per diem payments to traveling nurses counted as payroll. The Insurance Commissioner upheld the assessment, finding that ReadyLink’s per diem payments were not “reasonable” and therefore not exempt from payroll because they could not be substantiated and were designed to camouflage the assignment of income. ReadyLink petitioned the trial court for a peremptory writ of administrative mandamus, which the court denied.

On appeal, ReadyLink contends (1) the trial court incorrectly applied the substantial evidence standard of review rather than its independent judgment; (2) the commissioner’s decision is preempted by federal tax law; (3) the commissioner’s decision improperly created a new regulation without public hearing, comment and notice; and (4) equity dictates that the commissioner’s decision should not apply…