Workers Compensation Fraud in California: Legal Consequences and Reporting

January 4, 2024

Workers compensation fraud is a serious crime in California. Committing the fraud can lead to imprisonment, fines, and restitution. These frauds can impact the well-being of workers as they directly affect their financial matters. The California Department of Industrial Relations (DIR) suggests that workers compensation fraud costs between $1 billion and $3 billion annually. Seeking help from a personal injury lawyer in Santa Ana may benefit you in preparing your case for rightful compensation.

To help you better understand the types and legal consequences of workers compensation fraud, we have covered the most important details below.

Types of Workers Compensation Fraud

Based on the cases recorded in history, workers compensation frauds may be of various types. We have covered the most common types below.

  • Falsely Claiming an Injury
  • Exaggerating an Injury
  • Claiming an Injury That Occurred Outside of Work

Legal Consequences You Should Know

In the case of conviction, the legal consequences of workers compensation fraud include the following. 


In most cases, the convicted party may face up to five years of imprisonment in the state’s prison facility. The duration may vary for each case based on the provided evidence and the circumstances leading to the fraud.


In some cases, the court imposes hefty fines on the convicted party to compensate the victim. The fines may be up to $150,000, depending on the nature of the fraud and the circumstances leading to it.


When convicted, the court may order the guilty party to pay restitution to the victim. The restitution amount may vary based on the case’s details and circumstances.

How to Receive the Rightful Compensation for a Work Injury 

In order to receive the rightful compensation for injuries at work, you can take a few steps. We have covered them below.

Early Reporting of Injuries 

If you were injured at work and want to receive the rightful compensation for it, you should report your injuries right away. Delaying it can increase the risk of workers compensation fraud. Reporting the incident in a timely manner can help you get fair compensation.

Provide Accurate and Prompt Information 

When reporting injuries at the workplace, you should provide accurate details of the incident leading to injuries. Maintaining the accuracy of information can help workers receive the rightful compensation without falling under the fraud umbrella. 

Filing Claims Correctly

Some workers fail to receive the rightful compensation due to a lack of knowledge about reporting injuries at the workplace. Collect documentation, proof, and other necessary data to prepare for your claim. This way, you can avoid workers compensation fraud and receive the financial assistance they deserve.

Contact Krolikowski Law for Legal Representation!

The above information provides all the details you need to know about workers compensation fraud in California. If you need legal representation to seek rightful compensation, Krolikowski Law can help. Get in touch with our legal team today to explore your options.

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