Business owners in California are required to follow many regulations regarding their employees. Some of these laws, designed to protect both employers and employees, address workers' compensation issues. For example, every company in California with one or more employees is required by law to have workers' compensation insurance. Recently, it was discovered that a company in the southern part of the state had not provided this coverage for its employees.
Good Neighbor Services, based in Irvine, is a cleaning company that services luxury hotels in Southern California. The company has been charged with failing to report the existence of 800 employees over the past 10 years. It is claimed that the company's owners did this to avoid paying workers' compensation insurance and payroll taxes for those employees.
The owners, a husband and wife, have pleaded guilty in this insurance and tax scam of nearly $7 million. The man was charged with fraud and employment tax evasion and was sentenced to eight years in jail. His wife was sentenced to more than six years in jail for similar charges. However, she is currently on probation for part of that term. Others were also charged in the scam.
Workers' compensation benefits is available for California workers when workplace injuries have occurred. Companies, though required to have these policies in place, may still choose to contest an employee's eligibility to receive benefits. When someone is injured on the job, it is advisable to seek the guidance of a skilled workers' compensation attorney. A knowledgeable lawyer can help clients understand the claims process and work toward maximizing the amount of benefits received.
Source: insurancejournal.com, "Owners of California Hotel Cleaning Firm Plead Guilty to Workers' Comp Fraud", April 11, 2017