The California Workers’ Compensation Division fined claims administrators a total of $ 868,318 and ordered them to reimburse $ 332,826 in unpaid claims as a result of audits conducted in 2020, according to latest review report agency profile audit.
The 2020 audits revealed unpaid indemnities on 10.06% of the 2,833 complaints examined. In The 2019 auditors found unpaid claims in 11.82% of the 3,005 claims reviewed, according to the DWC.
The division said its profile audit review and full compliance audit found and cited 5,051 violations last year, with administrative penalties totaling nearly $ 1.2 million. However, not all penalties are subject to recovery.
The offenses for non-payment of temporary disability benefits or late payment resulted in the largest penalties. The 242 violations for non-payment of temporary disability or salary maintenance benefits in lieu of TD resulted in fines of $ 156,285. The 549 violations for late first payment of temporary disability resulted in $ 177,332 in assessed penalties, according to the report.
The division also issued 534 citations for late subsequent payment of compensation and imposed $ 117,409 in penalties for these violations. Audit penalties in 2020 were down from the $ 1.1 million imposed in 2019 and the $ 1.5 million imposed in 2018. The largest fine was imposed in 2014, when the DWC collected 1 , $ 8 million.
The DWC is required to report to the state legislature on its audit findings, including the number and types of violations cited and the amount of unpaid, uncontested compensation.
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