• Menu
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Search
  • About
  • Contact
  • Privacy
 
CHOOSE BROADSPIRE

Amaxx Workers Comp Blog

Reduce Workers Compensation Costs By 20-50%

Header Right

  • Home
    • Training Center
  • Get Started
    • Newcomers Class for WC Professionals
    • Subscribe to Free Newsletter
    • Free Training Center Account
    • Return to Work Resources
    • WC Claims Mgmt. Resources
    • Insurance Advisor Resources
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login

Mobile Menu

Choose Broadspire

CHOOSE BROADSPIREBroadspire Delivers Meaningful Results to Our Clients and Their Claimants
  • Home
    • Training Center
  • Get Started
    • Newcomers Class for WC Professionals
    • Subscribe to Free Newsletter
    • Free Training Center Account
    • Return to Work Resources
    • WC Claims Mgmt. Resources
    • Insurance Advisor Resources
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login
  • Search
  • About
  • Contact
  • Privacy
You are here: Home / California Workers Comp / Operation Underground Stings CA Contractors for Workers Comp Fraud

Operation Underground Stings CA Contractors for Workers Comp Fraud

August 6, 2012 By //  by Michael B. Stack Leave a Comment

Contractors Under-reporting to Avoid Work Comp Insurance

California officials report dozens of workers have been hit with citations in a statewide sweep targeting contractors for allegedly under-reporting payrolls in order to avoid paying higher workers compensation insurance and taxes, according to state officials.

The Contractors State License Board, Department of Insurance and Employment Development Department (CSLB) jointly conducted “Operation Underground” last month to check for potential “off the books” activity by 133 contractors, resulting in 104 citations and stop orders, according to the CSLB.

A CSLB spokeswoman said it may take up to a year to complete investigations arising from the two-day sweep. 

 

Misdemeanor or Felony Charges

Misdemeanor or felony charges could be filed, depending on the level of wrongdoing uncovered, she said, adding that, in the meantime, none of the contractors can be identified.

 

Contractors in 11 counties were cited during Operation Underground.

 

“Participants in the state’s underground economy are harmful to everyone,” said CSLB Registrar Steve Sands. “Anyone who neglects their responsibility to comply with state contracting, insurance, and payroll requirements drives up premiums. At the same time, legitimate licensed contractors struggle because illegal operators underbid them.”

 

Tips for Hiring Contractors

Officials reminded people planning to hire a contractor for residential or commercial work to keep the following in mind:

– any contracting job valued at more than $500 requires a license;
– unlicensed contractors can perform work that’s less than $500, but they must disclose that they’re not licensed in ads, according to state law;
– before anyone hires a contractor, they should verify the person’s license via the CSLB’s website, www.checkthelicensefirst.com;
– obtain at least three bids; and
– never pay more than 10 percent of the total estimated cost of a job, or $1,000, whichever is less.

 

Author Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher.  www.reduceyourworkerscomp.com.  Contact:  mstack@reduceyourworkerscomp.com.

 

WORKERS COMP MANAGEMENT MANUAL:  www.WCManual.com

 

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.

 

©2012 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact us at: Info@ReduceYourWorkersComp.com.

 

Filed Under: California Workers Comp, Fight Workers Comp Fraud & Abuse Tagged With: California, California Workers Comp Issues, Combating Fraud, WC Fraud, Workers Comp Fraud

Related Articles

workers' comp Investigation

Best in Class Claims Investigation

Best in Class Claims Investigation

Complete A Better Accident Investigation

Complete A Better Accident Investigation

One Critical Step To Start Any Injured Worker Investigation

One Critical Step To Start Any Injured Worker Investigation

Can You Spot the Workers Comp Fraud Red Flags?

Can You Spot the Workers Comp Fraud Red Flags?

Pro-Actively Stop Workers’ Comp Fraud Before It Starts

Pro-Actively Stop Workers’ Comp Fraud Before It Starts
workers compensation red flags of fraud

The RED FLAGS of Workers Comp Fraud

The RED FLAGS of Workers Comp Fraud

Surveillance in Workers’ Compensation

Surveillance in Workers’ Compensation

Responsibilities of a Workers’ Comp Claims Investigation Leader

Responsibilities of a Workers’ Comp Claims Investigation Leader
TEN Steps Every Adjuster Should Perform In a Workers Comp Claim Investigation

10 Steps Every Adjuster Should Perform In a Workers Comp Claim Investigation

10 Steps Every Adjuster Should Perform In a Workers Comp Claim Investigation

Detecting Workers’ Compensation Fraud

Detecting Workers’ Compensation Fraud

Surveillance is Often Used Incorrectly

Surveillance is Often Used Incorrectly
Five Clues an Injured Employee is Dragging Out a Workers Compensation Claim

Five Clues an Injured Employee is Dragging Out Their Workers Compensation Claim

Five Clues an Injured Employee is Dragging Out Their Workers Compensation Claim

Free Download

9-Element Blueprint To Create Your Workers' Comp Employee Brochure - FREE Download Click Here Now!

Train to Succeed

BECOME CERTIFIED IN WORKERS’ COMPENSATION

Proven Course Catalog & WC Toolbox Give You The Power To Achieve Lower Costs and Better Injured Worker Outcomes

VISIT WORKERS' COMP TRAINING CENTER

Free Download

The 5 Cs For Taking A Bulletproof Injured Worker Recorded Statement - FREE Download Click Here Now!

Train to Succeed

BECOME CERTIFIED IN WORKERS’ COMPENSATION

Proven Course Catalog & WC Toolbox Give You The Power To Achieve Lower Costs and Better Injured Worker Outcomes

VISIT WORKERS' COMP TRAINING CENTER

Previous Post: « New Opioids Being Developed to Decrease Abuse, Save Work Comp Costs
Next Post: 21 Farm Workers Killed, Significant Improvement in Health and Safety Needed »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

FREE DOWNLOAD

9-Element Blueprint To Create Your Workers' Comp Employee Brochure - FREE Download Click Here Now!

FREE DOWNLOAD

The 5 Cs For Taking A Bulletproof Injured Worker Recorded Statement - FREE Download Click Here Now!

Our Sponsors

Broadspire

Workers’ Comp 3rd-Party Administrator
 

Catastrophic Care Management, Complex Care, and Specialty Networks
 

Ametros

Post-Settlement Administration
 

Medicare Secondary Payer Services
 

Medcor

Injury Triage, Onsite Clinics

Read Our Award-Winning Blog

Blog Categories

Search Our Archive

Subscribe to Our FREE Newsletter

Footer

Search Our Archive

Search our continually growing archive of over 2500 articles about Workers' Comp issues.

Quiclinks

  • Calculators
  • Terms & Abbreviations
  • Glossary of WC Premium Terms
  • WC Resources
  • Best Practices
  • Industries

RSS Recent Blog Posts

  • What to Do AFTER a Workers’ Comp Claim Audit
  • Select the Right Claims for a Workers’ Comp Claim Audit
  • Stop Wasting Time Doing Workers’ Comp Claim Audits
SUBSCRIBE TO OUR FEE NEWSLETTER
Let Us Help You Stomp Down the High Cost of Workers' Comp!
Top of Page ↑
  • Home
  • Training Center
  • Get Started
  • Membership
  • Products
  • Blog
  • About
  • Contact
  • Subscribe
  • Login
Copyright © 2021 Amaxx, LLC. All Rights Reserved. · Privacy Policy / Legal Notice