Los Angeles Employer Workers' Compensation Law Blog

California Investigating How to Combat Workers' Compensation Fraud

On behalf of Sacks & Zolonz, LLP posted in Workers' Compensation Defense on Wednesday, April 12, 2017.

Fraud is a costly and prevalent problem in the California workers' compensation system. So much so that California legislators, the Department of Industrial Relations (DIR), the Department of Insurance, and the Workers' Compensation Division have taken aim at this issue repeatedly with legislation and reform efforts. The most recent sweeping legislation was SB 863, passed in 2012 and enacted in 2013.

SB 863 has been delivering well on its goals of keeping employer costs down and providing more benefits to injured workers. But with fraud an increasing issue, governing agencies in the industry are pursuing collaborative efforts to recognize and fight fraudulent workers' compensation activity. Earlier this year, these agencies provided a Report on Anti-Fraud Efforts in the California Workers' Compensation System.

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"Every Employer's Nightmare: Uninsured for Workers' Compensation" is the Book Every Employer Needs to Read

On behalf of Sacks & Zolonz, LLP posted in Workers' Compensation Defense on Tuesday, January 17, 2017.

Business owners face several known challenges, sufficient operating capital being among them. This often compels owners to cut corners and neglect expenses that are far more important than they realize. What many entrepreneurs aren't aware of is the looming danger of financial ruin if they fail to carry workers' compensation insurance.

Now, attorney Zachary H. Sacks has written a book that details the potential business hazards of workers' compensation. Financial ruin is not the only possible threat. Legal issues and criminal charges must be considered as well. Attorney Sacks offers practical solutions to forestall this nightmare.

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Red flags of employee fraud

On behalf of Sacks & Zolonz, LLP posted in Employee Fraud on Saturday, December 24, 2016.

When it comes to workers' compensation, there are several different ways an employee could be committing fraud. The California Department of Insurance states that some of the most common examples include lying about the ability to work, extent of the injury or place where the injury occurred. Medical professionals can also join an employee in fraudulent activities by billing for service that was not provided or giving more treatment than is necessary. There are several red flags that employers can watch for to indicate that dishonest activity may be occurring.

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The real cost of uninsured employers

On behalf of Sacks & Zolonz, LLP posted in Uninsured Employers on Thursday, December 22, 2016.

When it comes to ensuring the health of employees, the government has sought to protect workers by requiring businesses to maintain a workers' compensation insurance policy. Some businesses try to avoid paying premiums by neglecting this type of insurance, but the real cost of this illegal action may be surprising.

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Fighting Back as a Small Business Against Workers' Comp Fraud

On behalf of Sacks & Zolonz, LLP posted in Workers' Compensation Defense on Friday, December 16, 2016.

Most employers are required to carry workers' compensation insurance in order to support and protect their employees in case of injury or illness that occurs on the job. Some do this with an official policy or as part of their regular business insurance. Others set aside an account in order to self insure against whatever might happen. In most cases, employees don't file a claim unless they are actually hurt on the job, but there are exceptions. Some employees get hurt, but the injury isn't a result of what they do at work. Others might take a very minor injury and attempt to make it look as if it causes them more pain and suffering than it actually does in order to get a worker's compensation settlement, which is more than what they deserve. Like other forms of insurance, the more it is utilized, the more premiums rise. For a small business that operates on a tight budget, this can seriously impact their ability to expand. In many cases it can mean the difference between staying in operation or not.

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Alternate worker's compensation insurance options

On behalf of Sacks & Zolonz, LLP posted in Work Injury on Friday, December 16, 2016.

The success of a company often depends on the business owner's ability to make good decisions. When it comes to worker's compensation, many employers may feel like they do not have a choice in the matter because of state regulations and laws. The State of California Department of Industrial Relations says that any company that hires employees must carry a worker's compensation insurance policy with a premium rate determined by the specific industry, number of employees and past injuries of the business.

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Types of workers' compensation fraud

On behalf of Sacks & Zolonz, LLP posted in Employee Fraud on Wednesday, December 14, 2016.

When it comes to jobsite injuries, worker's compensation can allow employees to heal without suffering financially. It can also give scammers the opportunity to make money by fraud rather than legitimate injury. The Coalition Against Insurance Fraud reports that there are several different ways for criminals to take advantage of the system.

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How much can I be fined for not having workers' comp insurance?

On behalf of Sacks & Zolonz, LLP posted in Uninsured Employers on Sunday, December 4, 2016.

As an employer, you may have a number of obligations related to your business. For example, you may need to hire staff for an upcoming season or you could be dealing with an employee's lawsuit. However, you could find yourself in a particularly difficult situation if you are uninsured. In Los Angeles, and across the entire state of California, employers are required to provide workers' compensation coverage, even if they only have one employee. If your business does not have workers' comp, you could face various consequences, including stiff fines.

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Injured workers and Social Security disability

On behalf of Sacks & Zolonz, LLP posted in Work Injury on Friday, December 2, 2016.

In California, employees are hurt in the workplace on a daily basis. For some injured workers, different challenges may arise. For example, people may struggle with daily tasks because they have an inability to walk or drive. In Los Angeles, and other parts of the state, injured employees may also experience financial hardships due to missing work. However, some people claim they are in this position solely to take advantage of Social Security disability benefits.

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Particularly In California, Workers' Comp Claims Are A Threat

On behalf of Sacks & Zolonz, LLP posted in workers' compensation defense on Wednesday, November 30, 2016.

As the recent election proved and as others have proven in the past, states are entities with minds of their own. So when there is a seemingly national trend, there are still those states that stand out as different and notable in regards to certain matters. California tends to stand out for various reasons.

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