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California man pleads guilty to workers’ comp fraud

Employers have many things to take into consideration when it comes to their business, from the hiring process to turning a profit. However, workers’ compensation is extremely important and can lead to problems when not addressed properly. In San Francisco and the rest of California, there have been numerous examples of workers’ comp stories in the news. While some of them pertain to changes in state law, others discuss cases of fraud.

According to the Department of Insurance, a contractor in Hanford was dishonest when dealing with the State Compensation Insurance Fund, which allowed him to receive a reduction in rates and an improper edge against other businesses. His premiums were lowered because he repetitively changed the name of his company and attempted to present his business as new.

The 47-year-old farm labor contractor plead guilty and was sentenced to prison and ordered to pay over $4 million in restitution. This incident was investigated by The San Joaquin Valley Premium Task Force, which consists of local and state authorities who work together to battle fraudulent workers’ comp cases.

Whether an employee has been injured on the job, a business owner tries to understand the changes in state law or someone is convicted of a violation, there are many legal issues that can arise with workers’ comp and it is important for business owners to comply with the law. Furthermore, employees may sometimes have questions or problems with their coverage as well. If you are dealing with any workers’ comp issues, you could benefit from talking with an attorney.

Workers' Compensation

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