New state workers comp fraud law
A new state law will require the names of individuals and companies that have been convicted of workers compensation fraud to be posted on the Web.
This week, Gov. Arnold Schwarzenegger signed into law a piece of legislation by Assembly majority Leader Dario Frommer (D-Glendale) to crack down on workers’ compensation fraud.
“California is sending a clear message to anyone caught seeking workers’ compensation fraudulently or any employer who falsifies business records to evade providing necessary workers’ compensation insurance,” Frommer said. “If you’re convicted of workers compensation fraud in California, you’re going to find yourself on the Web where everyone will know.”
Assembly Bill 2866 instructs the California Department of Insurance to post on its Web site a detailed listing of individuals and companies that have been convicted of committing workers compensation fraud.
The listing will include the name of the perpetrator, the amount of money that was defrauded and what punishment was given, including amount of fines and length of incarceration.
Workers compensation fraud costs the state up to $3 billion each year.
The legislation is patterned after a similar Web site administered by the New York State Insurance Department, which posts monthly lists of arrests and convictions made through the cooperation of the New York State Frauds Bureau, law enforcement, the insurance industry and the general public. The postings serve as an added punishment and deterrent for criminals who commit workers compensation fraud and as a tool for employers and employees who will now know who they might be hiring or working for.
