Goni Enterprises v. Dept. of Industrial Relations
In November 2013, the Office of the State Labor Commissioner (Commissioner) within the California Department of Industrial Relations (Department) cited plaintiff Goni Enterprises, Inc. (Goni) for failing to secure workers’ compensation insurance for its employees. The Commissioner issued a stop order requiring Goni to immediately stop using any employee labor until the company secured workers’ compensation insurance. The Commissioner also issued a penalty assessment requiring Goni to pay more than $30,000 for failing to have such insurance. The Commissioner provided Goni instructions explaining its rights to administratively appeal the stop order and the penalty assessment pursuant to the procedures established by the Labor Code. Goni never administratively appealed the stop order or the penalty assessment.
In August 2014, Goni filed a complaint against the Department seeking declaratory relief and withdrawal of the penalty assessment.
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