California Crack Down on Worker's Comp

Posted on February 27, 2009 by LCT Magazine

WATCH OUT: California ex-governor turned mayor of Oakland turned attorney general Jerry Brown is cracking the whip on worker's comp. His latest lawsuit filing goes after what he considers to be a fake employee-owned company business model being used to avoid worker's comp payments. It's all part of an underground economy where business owners are avoiding worker's comp and payroll taxes funding disability and unemployment insurance programs, according to the LA Times article. In this suit, the state is asking for civil penalties of at least $300,000 from Contractors Asset Protection Assn. Inc. of Rancho Santa Fe. This is serious business requiring staying current on state regs, and watching out for affiliate work and joint ventures with companies not staying legit.  -- J.L.

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