Sweeps net 104 enforcement actions against uninsured employers

Construction companies that evade the workers' comp system have been the subject of a statewide joint task force effort in California. A two-day sweep led to violations and enforcement actions against 104.

"Operation Underground took aim at the off-the-books activity of unscrupulous contractors allegedly operating illegally or without proper coverage for their workers," said Insurance Commissioner Dave Jones. "In doing so, they not only failed to protect their employees, but they create unfair competition in California."

The sweeps in June focused on the so-called underground economy -- uninsured, untaxed, unlicensed, and unregulated activity.

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"Participants in the state's underground economy are harmful to everyone," said Steve Sands, registrar of the California Contractors State License Board. "Legitimate licensed contractors are being underbid and struggle because of these illegal businesses practices."

In addition to the CSLB, the joint task force is comprised of detectives from the state Department of Insurance, Employment Development Department, and County District Attorneys' offices. They used information from the State Compensation Insurance Fund and other sources for the sweeps.

Some of the violators received stop orders for the workers' comp violations, meaning they are not allowed to use employee labor until they obtain a policy for their workers and submit proof of that coverage to CSLB.

Read more at the WorkersComp Forum homepage.

August 9, 2012

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