August 9, 2007

Christine Baker

CHSWC Approves the Release of the Study on Misrepresentation and Under-Classification of Workers' Compensation Premium

OAKLAND –- The Commission on Health and Safety and Workers' Compensation (CHSWC) has approved the release of the draft report "Fraud in Workers' Compensation Payroll Reporting: How Much Employer Fraud Exists; and What is the Impact on Honest Employers?" for distribution and feedback. The study focuses on the amount of fraudulent under-reporting and misreporting of premium by employers in California and the impact that under-reporting and misreporting has on premiums and competitiveness for employers who report honestly. Key findings of the study include that an estimated $19-$106 billion in payroll is under-reported for premium calculations and that under-reporting and misreporting of payroll result in premium rates in highest-risk class codes that are several times the rate that employers would experience under full reporting.

CHSWC is charged with examining the health and safety and workers' compensation systems in California and recommending administrative or legislative modifications to improve their operation. CHSWC was established to conduct a continuing examination of the workers' compensation system and of the state's activities to prevent industrial injuries and occupational diseases and to examine those programs in other states.

Information about CHSWC and the study on fraud in workers' compensation payroll reporting are available: on the CHSWC web site, by contacting CHSWC by writing to 1515 Clay Street, Room 901, Oakland, 94612; by phone at (510) 622-3959: by fax at (510) 622-3265; or by email