The audit subject is liable for all penalty assessments, except that if the audit subject is acting as a third-party administrator, the client of that third-party administrator which secures the payment of compensation is jointly and severally liable with the administrator for all penalty assessments except civil penalties imposed under Labor Code section 129.5(e). Without affecting DWC's rights, a third-party administrator and its client may agree how to allocate the audit penalty expense between them.
Cal. Code Regs. Tit. 8, § 10112
2. Amendment filed 4-20-2009; operative 5-20-2009 (Register 2009, No. 17).
Note: Authority cited: Sections 59, 129.5, 133. 5307.3, Labor Code. Reference: Section 129, 129.5, 3200- 6002, Labor Code.
2. Amendment filed 4-20-2009; operative 5-20-2009 (Register 2009, No. 17).