Amy Cornell, Public Information Officer   CONTACT PERSON:
Scott Tsui, Supervising Deputy District Attorney
Economic Crimes Unit
(408) 792-2804   For release on April 15, 2009   14 SANTA CLARA COUNTY BUSINESSES CITED FOR WORKERS’ COMPENSATION FRAUD   Investigators from the Santa Clara County District Attorney’s Office cited 14 business owners throughout Santa Clara County earlier this month for knowingly failing to maintain workers’ compensation insurance.  Weeks before these citations were issued, DA investigators had advised these owners, who were among the approximately 180 randomly selected businesses visited by the investigators, to obtain and maintain workers’ compensation insurance coverage for their employees.  This insurance coverage is mandated by California Labor Code Section 3700.5.  Business owners were informed that, if they failed to obtain workers’ compensation coverage after the warning, they would be cited.  The 14 violators were issued misdemeanor citations and will be required to appear in court and show proof of obtaining insurance coverage.  The court may impose additional fines and penalties.   This is a part of the District Attorney’s Office’s ongoing effort to ensure that businesses comply with the law to provide workers’ compensation insurance for their employees.  Without workers’ compensation insurance coverage, employees who are injured on the job face the dim prospect of being unable to work and losing income.  Moreover, uninsured workplace injuries add a substantial financial burden to public and private hospitals due to the staggering costs of medical care.  Finally, businesses which fail to maintain workers’ compensation insurance coverage in order to reduce operating costs create an illegal competitive advantage over businesses which comply with this legal mandate.    ###  

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