Guadalupe Camacho, vs. One Hour Valley Cleaners; Preferred Employers Insurance Company,

In this case, Guadalupe Camacho, an employee of One Hour Valley Cleaners, filed a claim for workers' compensation after suffering an industrial injury to her right elbow, wrist, and left thumb while working for the company. The Workers' Compensation Administrative Law Judge (WCJ) issued a Findings and Award on February 11, 2009, allowing the lien claim of the Employment Development Department (EDD) and issuing an award against the defendant for the amount of the lien. The defendant sought reconsideration of the decision, but the Workers' Compensation Appeals Board denied the request, finding that the defendant was liable for the lien amount and that it would be inequitable to allow the defendant to receive credit for the overpayment because it

ONE HOUR VALLEY CLEANERS; PREFERRED EMPLOYERS INSURANCE COMPANY, GUADALUPE CAMACHO, WORKERS’ COMPENSATION APPEALS BOARDSTATE OF CALIFORNIAGUADALUPE CAMACHO, Applicant,vs.ONE HOUR VALLEY CLEANERS;PREFERRED EMPLOYERS INSURANCE COMPANY, Defendants.Case Nos. ADJ3722191 (GRO 0028583)ADJ916711 (GRO 0033193)OPINION AND ORDER DENYING RECONSIDERATION            Defendant seeks reconsideration of the February 11, 2009 Findings and Award of the Workers’ Compensation Administrative Law Judge (WCJ), as served on the parties on July 29, 2009, wherein the WCJ allowed the lien claim of the Employment Development Department (EDD) and issued an award against defendant for the amount of the lien. Applicant’s claim of industrial injury to her right elbow wrist and left thumb while working for defendant as a laundry worker/clothes presser on September 22, 2002, was earlier addressed on April 8, 2008 by entry of a stipulated award of 47% permanent disability and future medical treatment. At that time, defendant also agreed to adjust or litigate EDD’s lien.            Defendant contends that it should have been given credit for the EDD lien against applicant’s award of permanent disability pursuant to Labor Code section 4909.1            We deny reconsideration. Defendant was aware of EDD’s lien when it paid applicant her permanent disability award but failed to withhold the money for EDD. Under the circumstances of this case, the WCJ properly exercised his discretion under section 4909 to deny defendant credit 1Further statutory references are to the Labor Code. , for the resulting overpayment. Although we do not find that estoppel applies to preclude defendant’s claim for credit as indicated by the WCJ in his Report and Recommendation on Petition for Reconsideration (Report), which is incorporated by this reference, section 4909 authorizes the WCAB to exercise discretion in deciding whether to allow credit for an indemnity benefit overpayment. Here, it would be inequitable to allow defe

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