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EMPLOYEE STAFFING SERVICES, INC. v. AUBRY

No. 93-15482.

20 F.3d 1038 (1994)

EMPLOYEE STAFFING SERVICES, INC., in its capacity as sponsor and plan administrator of the Employee Staffing Services Employee Welfare Benefit Plan; The Employee Staffing Services Employee Welfare Benefit Plan; Human Resource Technology dba Stafcor; and Pro City Apparel, Plaintiffs-Appellants, v. Lloyd W. AUBRY, Jr., as Director of the Department of Industrial Relations for the State of California; Victoria L. Bradshaw, as Labor Commissioner for the State of California, and California State Department of Industrial Relations, Division of Labor Standards Enforcement, Defendants-Appellees, and International Ladies' Garment Workers' Union, AFL-CIO, Intervenor-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided April 5, 1994.

Attorney(s) appearing for the Case

Karen E. Ford and James P. Baker, Littler, Mendelson, Fastiff, Tichy, & Mathiason, San Francisco, CA, for plaintiffs-appellants.

H. Thomas Cadell, Jr., Chief Counsel, Div. of Labor Standards Enforcement, John M. Rea, Chief Counsel, Dept. of Indus. Relations, San Francisco, CA, for defendants-appellees.

Marsha S. Berzon, Michael Rubin, Indira Talwani, Altshuler, Berzon, Nussbaum & Rubin, San Francisco, CA, for intervenor-appellee.

Elizabeth A. Goodman, U.S. Dept. of Labor, Washington DC, David S. Foster, Thelen, Marrin, Johnson & Bridges, Daniel E. Leach, Leach & English, San Francisco, CA, Allan J. Graf, Farmer & Ridley, Los Angeles, CA, Jane Lauer Barker, Asst. Atty. Gen. in Charge of Labor Bureau, New York City, for amici.

Before: POOLE, BEEZER, and KLEINFELD, Circuit Judges.

KLEINFELD, Circuit Judge:

The premise of the complaint in this case is that ERISA opened a loophole so that employers could avoid buying workers' compensation insurance. It does not. The obligations of California workers' compensation insurance cannot be avoided by substituting an ERISA plan's coverage for work-related injuries. We affirm the district court's dismissal of the complaint.

Facts

Employee Staffing sponsors an ERISA plan. The ERISA plan...

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