Workers Compensation Fraud - California Father and Daughter Charged

California workers compensation laws are there for a reason! I'm starting to sound like a broken record but it seems fraud in the workers compensation system is on the loose!

Here's another short story of fraud recently addressed in the California workers compensation system.

It seems a father and daughter operating a business located in California were recently arrested for workers compensation premium fraud. Charged with a total of 11 felony counts these folks are accused of under reporting their workers comp payroll in an effort to minimize their workers compensation premiums to the tune of over $1,000,000. Wow! This activity occurred between 2003 and 2008, over a five year period. They are accused of misrepresenting the activities and even the existence of staff, superintendents, job foremen, subcontractors and others and failure to report accurate employee payroll information. They evidently were tripped up when various insurance carriers were presented with a total of 4 injured worker claims over the five year period of time while all along the father and daughter team denied they even had employees.

Think about it. That's a MILLION DOLLARS taken out of the workers compensation system. Money that would have gone to statistically help support other employers in the state. When this type of activity occurs it really does effect all others who step up to the plate and shoulder the responsibility of providing workers compensation coverage for their employees.

Thanks!

California Workers Compensation Fraud - Janitorial Service

Wow! Workers Comp fraud must be the hot thing in the news this week! Check out this page for California Workers Compensation Rules and Laws.

So here's another story about fraud in the workers compensation system. This time it happens to be based in California.

Two executives with a California janitorial service were arrested and charged with fraudulent misrepresentation in reporting the number of employees working in their business. They showed only a husband and wife with no employees. A state investigation found they actually had hundreds of janitors employed. The state indicates this company did not pay $4.4 million in workers compensation premium and another $1.9 million in unemployment and state disability taxes.

So, here's a question....did the owners of this company really think all those performing work for them were independent subcontractors? Is this a mistake they made or was it organized fraud? Well the jury is still out on this one. We'll just have to keep watching and see how this turns out.