Most California employers are mandated by law to carry workers' compensation insurance. This insurance is to provide benefits to employees who are injured on the job or who develop work-related illnesses. In addition to being required to carry appropriate insurance coverage, employers are supposed to report employee status and injury per regulations. These laws help to keep the system working fairly for all employers.
Three people in California today are facing a multitude of criminal charges for allegedly trying to artifically keep one business' workers' compensation insurance premiums low. One of the defendants owns a company that purchased workers' compensation insurance and the other two defendants were consultants in the industry. Together the group is said to have failed to report nearly 50 workplace accidents or injuries over the span of roughly four years.
In addition, the group is accused of not accurately reporting the status of some employees. Multiple entities have been involved in investigating this case including the Franchise Tax Board and the California Department of Insurance. Two insurance companies are said to have lost as much as $550,000 in premiums due to the alleged illegal and dishonest practices of the three defendants.
When companies or their representatives are concerned about the inappropriate actions of their employees or even leadership when it comes to workers' compensation and potential fraud, talking with an attorney may help to provide insight on what to do in order to ensure justice is served.
Source: The Press Enterprise, "Inland workers comp insurance scam busted, 3 arrested," March 30, 2017