Kaiser Foundation Hospitals v. Workers Compensation Appeals Board

This case involves the issue of whether the workers compensation statute of limitations is tolled as to a lien claimant, until the employer with knowledge of the work-related injury notifies the employee of his workers compensation rights. We conclude that when Labor Code section 5405, subdivision (a) (all further statutory references are to this code unless otherwise cited) applies, the limitations period specified therein runs from the date of injury. If the employer breaches its statutory duty to notify an employee unaware of his workers compensation rights of those rights, the limitations period is tolled for the period of time that the employee remains unaware of his rights. No tolling occurs if the employee has actual knowledge of his rights before the employers breach. The employer has the burden of proving when the injured employee gained actual knowledge of his workers compensation rights. The employee must know that he may be entitled to relevant benefits under the workers compensation system. We reach this conclusion after examining the language of the statutes involved, the case law, and the policies underlying the statutes.