State Compensation Ins. Fund v. Industrial Acc. Com

In State Compensation Ins. Fund v. Industrial Acc. Com. (1924) 194 Cal. 28, a maid employed by the Fairmont Hotel was injured when she exited the hotel premises through the servants' entrance the employees were required to use and slipped on a public sidewalk outside the hotel premises. She was not on duty at the time and was leaving the hotel on her day off to run a personal errand. She was not required to live at the hotel, but was given the option to do so, in exchange for which her wages were reduced. (Id. at pp. 29-31.) According to the court, it "seemed clear" the injury arose out of the maid's employment, since she was compelled to use the entrance that exited into the hazardous condition, and there was thus "a direct causal connection between the injury received by the employee and her employment by the hotel." (State Compensation Ins. Fund v. Industrial Acc. Com., supra, 194 Cal. at p. 31.) The more difficult question was whether the injury occurred in the course of employment, a question the court ultimately answered in the affirmative. (State Compensation Ins. Fund v. Industrial Acc. Com., supra, 194 Cal. at pp. 31-32, 36.) The court reasoned that, although the employee was given a choice regarding her lodging, once she made her choice, her employment contract required her to live on the hotel premises and have her meals there, which meals and lodging were part of her compensation for her services. (Id. at pp. 34-35.) Doing so, the court quoted Associated Oil Co. v. Industrial Acc. Com., supra, 191 Cal. at page 559, for the proposition that 1 "'when the contract of employment contemplates that the employees shall sleep upon the premises of the employer, the employee, under such circumstances, is considered to be performing services growing out of and incidental to such employment during the time he is on the premises of the employer.'" (State Compensation Ins. Fund, at p. 35.)