In Joint Committee on Labor and Workforce Development: Heard. Eligible for Executive Session.

Bill H.B. 532

This bill, entitled “An Act to Provide Incentives for Productive Workers’ Compensation Audits,” would provide that any employer who knowingly submits an application for workers’ compensation coverage that contains false misleading or incomplete information provided for the purpose of avoiding or reducing the insurance premium shall be punished by imprisonment in the state prison for not more than 5 years or by imprisonment in jail for not less than 6 months nor more than 2 1/2 years or by a fine of not less than $ 1,000 nor more than $ 10,000 or both.

The bill also mandates that audits performed by carriers and employers be adequate to ensure all sources of payment to employees, subcontractors, and independent contractors are reviewed and the accuracy of employee classification verified.