Chapter 1. Payment and Assignment - California Labor Code Section 4903.8
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California Laws > Labor Code > Chapter 1. Payment and Assignment - California Labor Code Section 4903.8
4903.8. (a) (1) Any order or award for payment of a lien filed
pursuant to subdivision (b) of Section 4903 shall be made for payment
only to the person who was entitled to payment for the expenses as
provided in subdivision (b) of Section 4903 at the time the expenses
were incurred, and not to an assignee unless the person has ceased
doing business in the capacity held at the time the expenses were
incurred and has assigned all right, title, and interest in the
remaining accounts receivable to the assignee.
(2) Paragraph (1) does not apply to an assignment that was
completed prior to January 1, 2013, or that was required by a
contract that became enforceable and irrevocable prior to January 1,
2013. This paragraph is declarative of existing law.
(b) If there has been an assignment of a lien, either as an
assignment of all right, title, and interest in the accounts
receivable or as an assignment for collection, a true and correct
copy of the assignment shall be filed and served.
(1) If the lien is filed on or after January 1, 2013, and the
assignment occurs before the filing of the lien, the copy of the
assignment shall be served at the time the lien is filed.
(2) If the lien is filed on or after January 1, 2013, and the
assignment occurs after the filing of the lien, the copy of the
assignment shall be served within 20 days of the date of the
(3) If the lien is filed before January 1, 2013, the copy of the
assignment shall be served by January 1, 2014, or with the filing of
a declaration of readiness or at the time of a lien hearing,
whichever is earliest.
(c) If there has been more than one assignment of the same
receivable or bill, the appeals board may set the matter for hearing
on whether the multiple assignments constitute bad-faith actions or
tactics that are frivolous, harassing, or intended to cause
unnecessary delay or expense. If so found by the appeals board,
appropriate sanctions, including costs and attorney's fees, may be
awarded against the assignor, assignee, and their respective
(d) At the time of filing of a lien on or after January 1, 2013,
or in the case of a lien filed before January 1, 2013, at the
earliest of the filing of a declaration of readiness, a lien hearing,
or January 1, 2014, supporting documentation shall be filed
including one or more declarations under penalty of perjury by a
natural person or persons competent to testify to the facts stated,
declaring both of the following:
(1) The services or products described in the bill for services or
products were actually provided to the injured employee.
(2) The billing statement attached to the lien truly and
accurately describes the services or products that were provided to
the injured employee.
(e) A lien submitted for filing on or after January 1, 2013, for
expenses provided in subdivision (b) of Section 4903, that does not
comply with the requirements of this section shall be deemed to be
invalid, whether or not accepted for filing by the appeals board, and
shall not operate to preserve or extend any time limit for filing of
(f) This section shall take effect without regulatory action. The
appeals board and the administrative director may promulgate
regulations and forms for the implementation of this section.
Last modified: February 16, 2015