|Newsline No. 42-12|
|October 1, 2012|
Annual workers’ compensation fraud warning notices being sent to all California employers, claims adjusters, third party administrators, physicians, and attorneys
The Division of Workers’ Compensation (DWC) is preparing to send fraud warning notices to all system participants. This notice is designed to promote awareness and to eliminate fraud in the workers’ compensation system. Labor Code section 3822 requires that the DWC administrative director provide every employer, claims adjuster, third party administrator, physician and attorney who participates in the workers' compensation system an annual notice warning against committing workers' compensation fraud, and advising of the penalties for such fraud.
Workers’ compensation fraud is a drain on California’s economy and harms employers by contributing to the high cost of workers’ compensation insurance and self-insurance. It also harms employees by undermining the perceived legitimacy of all workers’ compensation claims. Workers’ compensation fraud is not limited to claimant fraud because the workers’ compensation program is also victimized by fraudulent medical providers, employers, claims adjusters and attorneys.