Workers' comp law targets fraud (Schwarzenegger -- CA)

Sacramento Bee ^ | May 27, 2006 | Gilbert Chan

[FairOpinion]

Answering frequent complaints by contractors, Gov. Arnold Schwarzenegger on Friday signed legislation to crack down on workers' compensation insurance fraud plaguing the roofing industry.

The measure, Assembly Bill 881 by Assemblyman Bill Emmerson, R-Redlands, calls for insurers to conduct annual audits of roofing company payrolls and empowers the Contractors State License Board to strip roofing licenses from contractors who fail to carry state-mandated workers' compensation insurance.

Insurers and contractors are counting on the law to lower premiums for employers in the long run. Unscrupulous contractors will underreport the number of roofers on their payroll. Some won't carry coverage at all, while others may wait until a worker suffers an injury before claiming the employee as a new hire whose paperwork was delayed.

For years, contractors have complained about rampant payroll fraud, with competitors skirting the insurance law and gaining a competitive edge when bidding for roofing jobs.

"It's been a major problem. You have contractors who are claiming they have no employees when in fact they do," said Ward Connerly, administrator for the Roofing Contractors Association of California. "The governor's signature ensures contractors will be protecting their employees."

[FairOpinion]

This will help reduce the premium for everyone.

Also see another article:

Workers' comp is working (CA -- Schwarzenegger)

Getting the Workers' comp bill passed was a major accomplishment and it helped CA businesses. Now Arnold just helped made it better, by cracking down on fraud.

In the meantime the Dems want to overturn Arnold's workers comp reforms.

[Hildy]

I have a friend who owns a business in San Diego and he told us that the new WC is better, but he told us stories that made our hair stand on end!!!

[FairOpinion]

Workers' comp requirements were indeed driving people out of business. But the reform made a significant difference.

[ex-Texan]

The media is hyperventilating over Bush's NSA policy of identifying potential terrorists and targeting their telephone calls. Needless to say the MSM would go apoplectic over workers comp insurers targeting injured workers' telephones for illegal wire tapping. How do you think they get those great videos of injured workers playing golf or partying at the beach? Nobody has the manpower to sit outside with a camera for weeks on end. Today wiretapping is computerized. I heard a rumor the truth is about to come out.