Will Alabama Lawmakers Address Workers' Comp Fraud?

Date: April 18, 2017

A bill moving its way through the Alabama Legislature could help lower workers’ compensation costs for small business owners.

The measure, Senate Bill 196, sponsored by NFIB member Sen. Arthur Orr, would address fraud in the workers’ compensation system with four different tactics. SB196 would:

  • Expand the type of activity related to workers’ compensation fraud that is subject to criminal penalties
  • Authorize civil damages for fraudulent claims
  • Allow the Department of Labor to terminate compensation payments upon a determination of fraud
  • Provide for repayment of fraudulently obtained workers’ compensation benefits

SB 196 has already passed the Senate and if it passes the House as well and is signed into law, it could go a long way toward deterring fraud. Small business owners, in turn, would benefit because their workers’ compensation costs would be driven down.

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