Workers' Compensation

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Workers' Compensation Fraud Is A Crime

Although the vast majority of workers’ compensation claims are legitimately work-related injuries, 20% to 25% are estimated to be inappropriate. Based on estimates by the National Insurance Crime Bureau (NICB), workers' compensation fraud is a $30 billion problem in the United States. In California, it is estimated that workers' compensation fraud costs the state between $1 billion to $3 billion per year.

Any person who makes or causes to be made any knowingly false or fraudulent material statement or material representation for the purpose of obtaining or denying workers' compensation benefits or payments is guilty of a felony punishable by up to 5 years in prison and/or up to $150,000 in fines. It is a crime to knowingly assist, conspire with, or solicit any person in an unlawful act of workers' compensation insurance fraud. Please see the State of California's Workers' Compensation Fraud Warning [PDF].

If you have knowledge, information or evidence of fraud, please contact the Human Resources Management department at 310-243-3771.