Contractor Appeals Audit Claiming Independent Contractors

A small Southern California construction company that claims to be a sole proprietorship with no employees is asking the California Department of Insurance to intervene in a nearly $400,000 premium dispute with its workers’ comp carrier. The home remodeling company says it used independent contractors to complete its projects, but the carrier says the contractor … Read More »

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Fraud Assessment Increase

California employers will be charged more to fight workers’ comp fraud next year.  The Fraud Assessment Commission voted 4-2 to boost funding by 10% to $85.7 million. The increase amounts to less than a tenth of a penny per $100 of payroll, and total fraud assessments will still be less than a cent per $100 … Read More »

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Employer’s Classification Challenge Under Review

A non-profit foundation that operates a senior assisted living center is challenging the workers’ comp classification assignment for three part-time clerical staff to class 9007 instead of the standard clerical classification in 8810. Class 9007 covers “all other employees” at senior homes and carries a rate of $3.20 per $100 of payroll compared to just … Read More »

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Employer’s Appeal Lacked Evidence

A California employer who appealed its workers’ comp classification assignments faces a high bar to prove its case. The appeal went to an evidentiary hearing before a California Department of Insurance administrative law judge. At the hearing, the employer’s representative – Guido Dito of D&M Risk Management Services – who is not a lawyer – … Read More »

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Will There Be Future CIGA Assessments?

The California Insurance Guarantee Association (CIGA) has good news. It is going another year without assessing California employers or other insureds to support its operations. Recent operational changes make future assessments even less likely. Association officials note that CIGA has nearly $2.7 billion in surplus across all of its lines of responsibility – workers’ compensation, … Read More »

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Trial Date Finally Set In MEWA Case

Federal prosecutors are finally ready and going to trial against Marcus Asay and Antonio Gastelum. They are accused of committing fraud as part of running the “MEWA” known as American … Read More »