Posted On: May 15, 2010 by Steven J. Malman

Employer Ordered to Pay $1.3 Million for Underpaying Workers’ Compensation Coverage

A man who underpayed workers compensation coverage after underreporting how many employees worked for him at his nurse staffing agency has been ordered to pay $1.3 million in restitution to the state. The superior court judge also sentenced Joseph Baiden to five years supervised probation.

An investigation was instigated into Baiden’s company, Nurse Connection Inc. in 2008 after an anonymous tipster suggested that suggested that over a six-year period the nursing company owner had been falsifying payroll records and California and federal tax filings. Baiden was accused of trying to hide the actual risk to the insurance carrier by misrepresenting $20 million in payroll. This lowered his workers’ compensation premiums by nearly $1.3 million.

Baiden must also pay the state $110,000 for its investigative expenses. He also will have to turn in his yearly corporate tax returns to the district attorney’s office and insurance regulators. When he goes back to court in November for a progress report, he will have to provide proof of current workers’ compensation insurance.

Illinois Workers’ Compensation
Employers must provide workers with Illinois workers’ compensation coverage so that in the event of work-related injury, illness, or death, the employee can avail of these benefits. If your company’s insurer decides to deny your work injury benefits, there are steps that you can take to dispute their decision to deprive you of the compensation that you are owed. Unfortunately, many workers don’t understand that they have rights and don’t file Illinois workers’ compensation claims or settle for far less than they should be getting.

Calif. man to pay $1.3 million for underpaying workers’ comp. premiums, Insurance and Financial Advisor, May 11, 2010

Diamond Bar man suspected of fraud, properties seized, SGVTribune, August 19, 2009

Related Web Resource:
Illinois Workers' Compensation Act (PDF)

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