The Division of Workers’ Compensation revealed that its audit and enforcement unit conducted three civil penalty audits in 2023 based on credible complaints filed against the audited claims adjusters. The Division’s 2023 audit report showed the number of violations found at each of these locations, but it did not include details about the nature of …
Proposed legislation would target rampant workers’ comp fraud in the state’s temporary staffing industry by creating a registration system that requires proof of coverage to register or renew. The proposal by Sen. Eloise Gomez Reyes (D-San Bernardino) also would bar employers from using unregistered staffing agencies and create new legal exposure for violators. Reyes introduced …
The Ventura District Attorney did not criminally prosecute a Ventura County temporary staffing company that prosecutors say operated for years without workers’ comp coverage, used forged certificates of insurance, backdated …
Federal officials filed an eight-count federal indictment naming seven staffing industry executives as defendants. The case alleges a scheme to pocket payroll taxes from client employers and workers, and to cheat workers’ comp carriers out of premium. Proceeds from the $90 million scheme allegedly went toward buying real estate, luxury cars, expensive vacations, and other …
The former head of BaronHR appeared virtually in Orange County Superior Court last week and pleaded guilty to state charges of workers’ compensation fraud and employment tax fraud. Under an agreement, certain felony counts against Luis Perez were reduced to misdemeanors. He also agreed to pay full restitution and was sentenced to a year in …
The package sale of a managing general agency (MGA) and a third-party administrator (TPA) by Sunz Holdings to Acrisure LLC in 2021 is now spawning litigation between the parties. The deal, according to court documents, was valued at hundreds of millions of dollars. In the deal, Acrisure acquired Next Level Administrators, a third-party administrator, a …
A Florida-based staffing company with extensive operations in California’s light industrial and factory settings is asking a federal district court in California’s Central District to block a $51 million demand for collateral on its workers’ comp policy. Full Steam Staffing filed the complaint earlier this month, alleging that Chubb Limited retaliated against it for ending …
The California Labor Commissioner and the Division of Labor Standards Enforcement recently designated a decision as a precedent, upholding two citations against an employer for operating without workers’ comp coverage. …