State Compensation Ins. Fund v. Urgent Nursing Resources CA2/1

Filed 12/17/15 State Compensation Ins. Fund v. Urgent Nursing Resources CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

STATE COMPENSATION INSURANCE B258423 FUND, (Los Angeles County Plaintiff and Appellant, Super. Ct. No. VC061989)

v.

URGENT NURSING RESOURCES, INC.,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County. Raul A. Shogun, Judge. Affirmed. Betty R. Quarles and Isabel C. Lallana for Plaintiff and Appellant. Law Offices of Bennett A. Spector and Bennett A. Spector for Defendant and Respondent.

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State Compensation Insurance Fund (State Fund) appeals from the trial court’s judgment that Urgent Nursing Resources, Inc. (Urgent) does not owe it workers’ compensation premiums for some of Urgent’s nurses because the nurses were independent contractors, not employees. State Fund argues the nurses were Urgent’s employees and Urgent is therefore statutorily liable for the premiums. We affirm. BACKGROUND Urgent is a nursing registry. It provides hospitals with temporary nurses at hospitals’ requests. After Urgent receives a hospital’s request for a temporary nurse, it offers certain nurses in its registry, who have been preapproved by the hospital, the requested assignment. The nurses are free to reject the assignment without explanation or penalty. Once a nurse accepts an assignment, Urgent reviews with the nurse a checklist provided by the hospital of the assignment’s duties. If the nurse can perform the duties, the nurse reports to the hospital. The nurse provides his or her own uniform, shoes, stethoscope, watch, and occasionally other small supplies (such as pens and pen lights) for the assignment, but does not provide any other equipment. After the hospital provides orientation, the nurse completes the assignment, usually a shift, under the supervision of hospital. Once the nurse completes the assignment, the hospital pays Urgent for the nurse’s and Urgent’s services. Urgent later distributes the nurse’s portion of the payment to the nurse. Urgent allows nurses in its registry to choose whether to be designated as an employee or independent contractor. To be classified as an independent contractor, Urgent requires, in part, that the nurses sign an independent contractor agreement and provide their own liability insurance. These nurses receive Internal Revenue Service forms 1099 (1099 Nurses). Of Urgent’s nurses, 126 were 1099 Nurses. The remaining 18 signed contracts as employees and received Internal Revenue Service forms W-2 (W2 Nurses). Urgent and the hospitals contracted for the 1099 and W2 Nurses’ services without distinction. Under these contracts, Urgent agreed to provide workers’ compensation insurance for its nurses. Urgent obtained workers’ compensation insurance for the W2