Fraud of the Week

July 30, 2018

Workers Compensation Fraud — California

Amount: $200,000

Nine Contra Costa restaurants were dealt administrative fines after a joint enforcement strike force discovered that they all failed to provide workers compensation insurance to their employees. Investigations revealed that the restaurants collectively employed 55 workers without providing insurance which would allow coverage for on-the-job injuries. All of the restaurants were sent a warning letter from the District Attorney's office, and all nine failed to provide their workers with the appropriate coverage. Willful failure to provide workers' compensation coverage in the state of California is punishable by substantial fines and misdemeanor criminal prosecution. The state does not take kindly to employers who fail to provide their employees with the necessary protection, particularly in the risky restaurant business. Allowing restaurants to get away without providing workers compensation insurance to their employees, allows them the opportunity to undercut other restaurants who are abiding by all of the applicable laws.