Omar Luna — ADJ8887862

Omar Luna, a tow truck driver, sustained an industrial injury to his cervical and lumbar spine on March 25, 2013, while working for Long Beach Towing and Storage, Inc., an uninsured employer that had contracted with Barrett Business Services, Inc. (BBSI), a Professional Employer Organization (PEO), for payroll and workers' compensation coverage. The WCJ found applicant was employed by Long Beach but not by BBSI, despite Long Beach having an executed Agreement for Employer and Staffing Services with BBSI under which BBSI agreed to employ workers in 'towing' classifications. Applicant, Long Beach/Honarkar, and UEBTF all sought reconsideration, arguing BBSI was a joint (general) employer. The Board granted all three petitions, holding that under Labor Code section 3602(d)(1) and the Kowalski/Riley general-special employment framework, BBSI was a co-employer because there was a valid enforceable staffing agreement and BBSI had confirmed receipt of applicant's onboarding documents and added him to payroll. The Board substituted new findings that applicant was employed by both Long Beach and BBSI and deferred all other issues, including the alleged sections 3550 and 3551 notice violations.