Monterey's Enforcement Operation On Employers For WC Insurance

Monterey, CA (CompNewsNetwork) - Monterey County District Attorney Dean D. Flippo announced that on March 15, 2010, and March 16, 2010, investigators conducted an enforcement operation for workers' compensation insurance on employers in Monterey County. The Monterey County District Attorney investigators from the Workers' Compensation Fraud Unit organized the operation with assistance from investigators from the California Department of Insurance [CDI], Morgan Hill Office and an investigator from the California Department of Employment Development [EDD].

The enforcement operation involved unannounced compliance checks based upon information received from sources indicating that certain employers did not have workers' compensation insurance. Some of the referrals came from the Division of Labor Standards Enforcement [DLSE] and the Information and Assistance Office from the Department of Workers' Compensation, Salinas Office. Employers who were not in compliance were cited for the violations.

During the operation twenty-one locations were checked for compliance. Eleven employers were found to be in violation of the Labor Code for not securing workers' compensation insurance for their employees. Four persons were immediately cited, one was issued a warning and six will be sent for review by the District Attorney's Office. One employer was found to be out of business and the remaining businesses were either in compliance or did not have any employees working for them.

California State law requires that all employers secure workers' compensation insurance for their employees so that there is an assurance of adequate medical coverage and other benefits for any work related injuries that may occur. Failure to secure workers' compensation insurance has a penalty of up to one year in jail and up to double the amount of the premium owed as a fine payable to the California State Treasury for the Uninsured Employers Fund. The Workers' Compensation Unit of the District Attorney's Office investigates and prosecutes cases involving applicant fraud, employer fraud, premium fraud, provider fraud and employers who do not carry workers' compensation insurance.

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