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Think back a few years.

Many in the press and public believed that California workers’ comp was rife with worker fraud. The vision was fed by the occasional arrest shown on the 10 o’clock news. Or the story that doctor and attorney mills were feeding on each other, treating workers up the yin yang, ordering every expensive test possible. Billboards plastered over some major metropolitan areas didn’t help the perception.

But the perception has changed.

Now there’s still focus on employee fraud, but increasing concern about employer fraud.

Marc Lifsher’s recent piece in the Los Angeles Times is a good summary of recent efforts to focus on employer fraud. Lifsher’s piece is viewable here:
http://www.latimes.com/business/la-fi-c … 3850.story

My earlier blog piece on the issue was “Its the Employer Fraud, Stupid”.
That post is viewable here:
http://workerscompzone.com/index.php?en … 818-110358

Employer comp fraud is costing honest California employers and insurers huge amounts of money.

There’s a good chance your local car wash, dry cleaner and your favorite ethnic restaurant aren’t covering their employees. It’s that bad.

Until the legislature increases penalties for failing to maintain insurance,
enforcement raids seem to be key. But given the how endemic this problem appears to be (along with widespread other labor law violations), the state has a monumental task in educating employers, many of whom are ethnic minorities.

Stay tuned.

Julius Young
www.boxerlaw.com

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Category: Understanding the CA WC system

Julius Young

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