California Will Take Workers’ Compensation Fraud Seriously

May 10, 2019
Sacks & Zolonz, LLP
Workers’ Compensation Fraud

If you are a business owner or operator, we know that your priority is ensuring that you are successful and profitable. If you are not, your entire livelihood and that of your workers could be in jeopardy. However, we know that there are times when you may be questioned about your cost-saving measure and you may need a Los Angeles workers compensation fraud attorney.

At Sacks & Zolonz, LLP, you can count on us being by your side, fighting to ensure you are treated fairly. We will investigate what happened and defend you against these allegations.

What Is Workers’ Compensation Fraud?

The last thing that any business owner wants to hear is that they are under investigation for or being charged with workers’ compensation fraud n California. Today, we want to discuss a recent article that discussed workers’ compensation fraud and how employers can face these charges.

Deputy Attorney Michael Chiriatti, Jr. is the lead prosecutor for his office’s Workers’ Compensation Fraud Unit, and he loves his job. He does not like seeing anyone cheat the system.

  • We bring this to your attention because we want you to know that these cases are serious.

Chiriatti, in a recent presentation, discusses different types of workers’ compensation fraud. Most people only think of workers who fake injuries in order to collect compensation, also known as claimant fraud. Yes, this is certainly a fraud, but they are not the only offenders.

He says that some companies “will attempt to lower their premium by underreporting payroll or classifying their regular employees as independent contractors.”

  • Workers’ comp premiums are partly based on payroll data. Underreporting can lower employer costs.
  • Employers often avoid paying taxes, benefits, and insurance by misclassifying employees. Please know that the state recently cracked down on this practice.

We also know that employers can misrepresent the risks that their employees face in order to lower their premiums. For example, if an employer says that their worker is a receptionist when they are really a member of the maintenance team, this is a fraud.

Workers’ compensation fraud is a big deal because it causes the cost of insurance to rise for every employer in the state. In California, these charges are taken very seriously. Violators can face fines and jail time if found guilty.

What Happens Now?

If you are facing accusations of workers’ compensation fraud by authorities in California, please seek legal assistance as soon as possible. Do not take any allegations or charges lightly. There are real consequences involved, including jail time, fines, and the loss of your business.

At Sacks & Zolonz, LLP, you can count on having a qualified and experienced team by your side. We understand these cases and have a successful defense track record. When you call us, we will work to build your defense from the ground up. If you need a Los Angeles workers’ compensation fraud attorney, you can contact us for a consultation by clicking here or calling 310-216-7778.

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