A Federal Court Upholds the Legality of California Workers' Compensation Anti-fraud Legislation With Additional Procedural Due Process Warranties

• Jurisdiction: United States,Federal,California
• Citation: Vol. 24 No. 2
• Publication year: 2018
• Author: By David R. Ruiz
• topic: Administrative Law,Insurance Law,Labor Law,Health Law,Civil Procedure,Workers Compensation

A Federal Court Upholds the Legality of California Workers' Compensation Anti-Fraud Legislation With Additional Procedural Due Process Warranties

By David R. Ruiz

David R. Ruiz practices in the Strategy, Writs, and Appeals Team and in the Special Investigations Unit/ Insurance Fraud Litigation Team at Manning & Kass, Ellrod, Ramirez, Trester, LLP. Mr. Ruiz is also an associate Professor of Law at Glendale University College of Law.

Starting January 1, 2017, two Workers' Compensation anti-fraud provisions came into effect that affect the ability of medical providers charged or convicted of fraud-related offenses to collect on their liens. Shortly thereafter, the provisions were challenged by a medical provider alleging in federal court that the provisions failed to guarantee due process. In an effort to prevent an injunction curtailing the application of the anti-fraud provisions, the California Legislature soon thereafter enacted AB 1422 clarifying the anti-fraud provisions. The federal...