Aubry

The premise of the complaint in this case is that ERISA opened a loophole so that employers could avoid buying workers’ compensation insurance. It does not. The obligations of California workers’ compensation insurance cannot be avoided by substituting an ERISA plan’s coverage for work-related injuries. We affirm the district court’s dismissal of the complaint.

Facts

. Employee Staffing sponsors an ERISA plan. The ERISA plan covers work-related injuries and provides medical, health, and life insurance benefits. Stafcor, a subsidiary of Employee Staffing, employs workers covered by the plan. Firms in the California garment industry pay Stafcor to provide workers, instead of employing the workers themselves. The State of California, though, refuses to issue certificates required under California Labor Code § 2675 to the garment manufacturers on the ground that Stafcor has not complied with the California workers’ compensation laws. The State Division of Labor Standards Enforcement has ordered Stafcor to “stop using any employee labor until you have secured Workers’ Compensation Insurance.” Since Stafcor’s business is supplying workers to other companies in various industries, this…