Michael Newman Quoted in Business Insurance Article on California Law Holding Employers Liable for Subcontractors' Wage or Workers’ Compensation Law Violations
In The News | 1 min read
Oct 2, 2014
Michael A.S. Newman, a partner in the firm's Los Angeles - Downtown office, was quoted in the article "Calif. law makes companies share wage, comp liability with labor contractors," which appears in the October 1, 2014 issue of Business Insurance. The piece focuses on a new California law imposing liability on companies when their labor contractors fail to pay wages or obtain valid workers compensation coverage.
Mr. Newman believes that the new law may negatively affect the labor contracting industry. He explains that "'one of the big selling points' of labor contractors has been that the hiring company 'doesn't need to worry about the headache of paying workers comp for people' or being sure they're adequately paid, because [those matters have] been handled by the labor contracting firm. 'The law changes that.' It says when you have this kind of situation the client business 'also shares the liability' if workers are not paid appropriately under the wage and hour laws, or not provided with workers compensation coverage." Noting a section of the law that appears to allow a client employer to "provide by contract for a situation where the staffing company agrees to indemnify the client company if the client company is found liable because of bad acts on the staffing company's part," Mr. Newman believes that that provision may "encourage companies to work with larger, more financially stable staffing companies."
Mr. Newman is a litigator with a broad practice that includes employment litigation, insurance coverage disputes, bad faith liability actions, insurance regulatory matters, trade secret, and contractual disputes. He advises and defends insurance clients in matters involving the alleged bad faith denial of benefits on life, disability, long-term care, workers' compensation and health insurance policies. Mr. Newman has also worked on behalf of insurance clients in regulatory matters involving the California Department of Insurance. Additionally, he counsels and represents business clients (both in and out of the insurance industry) in actions alleging violation of employment laws and in matters involving alleged misappropriation of trade secrets.
Related Locations
Featured Insights

Event
Mar 3 – 5, 2026
25th Annual Legal Malpractice & Risk Management (LMRM) Conference

Press Release
Feb 13, 2026
Hinshaw Team Wins Appeal in Criminal Indictment of Waukegan City Clerk Janet Kilkelly

Press Release
Feb 10, 2026
Hinshaw Trial Team Secures $0 Defense Verdict in $15 Million Auto Accident Trial

Press Release
Feb 4, 2026
Hinshaw Celebrates 17 Consecutive Years of Being Named an Equality 100 Award Winner

Press Release
Feb 5, 2026
Hinshaw Legal Team Secures Directed Verdict in Florida Equine Fraud Case

Press Release
Feb 2, 2026
Hinshaw Welcomes 16 Attorneys in Seven Offices and Announces Opening of a Cleveland Office

Press Release
Jan 20, 2026
Hinshaw Attorneys Named to the LCLD 2026 Fellowship Class and 2026 Pathfinder Program

Press Release
Jan 15, 2026
Hinshaw Client Secures a Complete Jury Verdict in Fraudulent Misrepresentation Horse Sale Case

Press Release
Jan 6, 2026
Hinshaw Adds Four-Member Consumer Financial Services Team in DC and Florida



