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Santa Maria, CA (WorkersCompensation.com) – Workers or their survivors may be able to sue a company for negligence, circumventing the exclusivity rule of workers’ compensation, if they can prove that the company fraudulently concealed their injury.
A case in which a company bus driver was crammed into a hotel with his colleagues at the height of the Covid-19 pandemic shows what measures may be necessary for an employer to incur liability under this exception.
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In June 2020, the employee lived in close quarters with colleagues in a hotel where the company accommodated employees. During his stay there, he became infected with the virus and died shortly afterwards.
The employee’s widow sued the company for negligence. The company moved to dismiss the case because the widow was entitled only to workers’ compensation benefits under the exclusive remedy provision.
In her lawsuit, the widow claimed:
- The company knew that accommodation in the hotel would lead to the spread of the virus there.
- The company became aware of a COVID-19 outbreak at the hotel before the employee was exposed to the virus there.
- The employee was unaware of the outbreak at the hotel and the company had failed to inform its employees of the situation or take safety measures.
- The employee showed symptoms of COVID-19 disease in the hotel and informed his superiors about the symptoms.
- When the company learned of the employee’s symptoms, it did not inform him of the outbreak or that his symptoms were consistent with COVID-19.
- The employee tested positive one week after reporting his symptoms and died a few days later.
Generally, employees who are injured in the course of their employment are limited to the compensation they are entitled to under the Workers’ Compensation Act. Therefore, the employee or survivor cannot sue the company for negligence.
An exception exists if the employee’s injury was aggravated by the employer’s fraudulent concealment of the existence of the injury and its connection with the employment relationship. An employee or his or her survivor will qualify for this exception if he or she proves that:
- The employer knew that the employee had suffered an accident at work;
- The employer concealed this knowledge from the employee.
- This concealment made the injury worse.
Could the widow sue the company for negligence?
A. No. The employee should have left the hotel immediately when his symptoms appeared.
B. Yes. The company’s decision not to inform him about the virus and the significance of his symptoms caused his illness to worsen.
If you selected B, you agree with the court in Chavez v. Alco Harvesting, LLC, No. B329282, Cal. Ct. App. 06/17/24), which ruled that the widow made a valid claim that the company acted fraudulently.
The court noted that the widow claimed that her husband died as a result of COVID-19 after contracting the disease while working for the employer. She alleged that the company intentionally concealed the outbreak as well as the nature of her husband’s illness. This concealment, she claimed, led to the aggravation of his illness, his inability to recover, and his subsequent death.
The widow plausibly argued that the fraudulent concealment exception applied to her claim, the court ruled, and reversed the trial court’s dismissal of the case.
