Michael P. Georgariou II, Attorney at Law

05/11/2026

California’s workers’ compensation system returned more than $1 million in administrative penalties through audits in 2024, according to a newly released annual report from the California Division of Workers’ Compensation’s Audit & Enforcement Unit. The report details the results of 40 audits conducted on insurers, self-insured employers, and third-party administrators, covering nearly 2,700 claim files statewide. Auditors identified 4,531 violations and assessed more than $1.35 million in penalties, with approximately $1.01 million ultimately subject to collection.

These findings offer another window into ongoing compliance problems within the workers’ compensation system. Among the most concerning statistics in the report was that auditors found unpaid indemnity benefits in more than 10% of reviewed claims. As a result, the Audit Unit issued 275 notices of compensation due totaling more than $442,000, including unpaid temporary and permanent disability benefits owed to injured workers. The report also found that eight audit subjects failed initial performance reviews and were moved into more extensive compliance audits, with five ultimately failing the second-stage review entirely, receiving penalties for all violations found.

The findings of this audit show the limits of the current enforcement structure. Although thousands of violations were identified, 32 of the 40 audited entities avoided financial penalties because they met or exceeded minimum performance standards under California law. Even where violations were found, many employers and carriers were only required to pay benefits that should have been issued in the first place. Separately, the Audit & Enforcement Unit reported handling 560 complaints in 2024, recovering an additional $1.18 million in payments to injured workers and providers through complaint-driven investigations.

This report reinforces concerns that delays, underpayments, and claims handling violations remain persistent features of the system rather than isolated incidents. It also emphasizes the critical role applicants’ attorneys continue to play in identifying compliance failures and ensuring injured workers receive the benefits they are legally entitled to. As enforcement challenges and audit findings continue to undermine injured workers, the need for strong advocacy and accountability within the system remains as important as ever.

01/13/2026

Interesting article about SIBTF funding, cases, and law:

THE GREAT SIBTF CON: How One Bogus Study Set Up a Taxpayer Bailout


Huntington Beach, CA— Tax Freedom California is calling for a legislative audit and public review of the state‑commissioned 2024 report on the Subsequent Injuries Benefits Trust Fund (SIBTF) after a new investigation by The Jacobi Journalfound that a taxpayer funded studyby The RAND Corporation overstated the fund’s liabilities by $6.75 billion—a 632% error.
Tax Freedom Californiadescribes the scandal as The Great SIBTF Con:a setup that relied on inflated numbers to manufacture a false fiscal emergency and pave the way for employers to transfer their long‑term disability costs onto taxpayers. The exaggerated data became a key talking point behind proposals like AB 1329, which sought to reduce benefits for severely disabled workers while pushing private obligations into the state’s general fund.

How the Great SIBTF Con Works
The SIBTF is a self‑contained, employer‑funded program that provides lifetime compensation to California’s most seriously disabled workers. It prevents these workers from having to rely on Medi‑Cal, SSI, or other taxpayer‑funded programs.

According to The Jacobi Journal, the 2024 study distorted this role by painting the fund as “insolvent.” That narrative made a stable employer‑based program look like a failing taxpayer burden, creating the illusion of a crisis to justify policy changes. If the fund is weakened or dismantled, private liabilities don’t disappear—they simply land on the public.

The Numbers That Built the Con

The Jacobi Journalidentified two major distortions in the state‑funded study:

An inflated payout rate.The analysis assumed 91% of open cases would result in benefits based on a small sample of only 42 files, ignoring decades of data showing fewer than half lead to an award.
Exaggerated award values. The model relied on assumptions that maximized liability: a 3% discount rate instead of 7%, a 3.9% cost‑of‑living adjustment double historical norms, and no adjustment for shorter life expectancy among fully disabled individuals.

When appropriate actuarial standards are applied, the fund’s liability drops to $1.25 billion—a figure that is fully manageable under existing employer contributions.

Holding the Line for Taxpayers

Tax Freedom California is urging state officials to:

Require independent reviewof every publicly funded study before its findings influence legislation.

Apply statutory assumptions, including California’s 7% discount rate, in all official modeling.

Keep employer obligationsinside the workers’ compensation system and out of the general fund.

For complete findings and ongoing updates, visit

January 13, 2026 — An explosive investigation by The Jacobi Journal has exposed the RAND Corporation’s 2024 report on California’s Subsequent Injuries Benefits Trust Fund (SIBTF) as a financial and political controversy. By overstating the fund’s liability by an estimated $6.75 billion—a 6...

10/06/2025

A recent federal court ruling against Grimmway Farms, the world’s largest carrot grower out of Bakersfield, has shed light on how employers can misuse the interactive process to sideline workers rather than support them. U.S. District Judge Dale A. Drozd found that Grimmway Farms engaged in systemic disability discrimination by forcing hundreds of injured or disabled workers onto unpaid leave, instead of exploring accommodations that would have allowed them to remain in their jobs. The California Civil Rights Department (CRD), which brought the case, hailed the ruling as a major victory for farmworkers and disability rights.

At the center of the case was Grimmway Farm’s “interactive process”. Rather than meaningfully considering accommodations such as modified-duties or assistive technology, the company used the process as a funnel to remove injured workers from the workforce all together. Court records show that the scope of the practice was widespread. Between 2016 and 2024, about 600 workers entered the process and at least 96% were placed on unpaid leave, even when workers had successfully performed light-duty jobs. For many injured workers, this meant a devastating loss of income and a choice between returning to work without accommodations or leaving their jobs altogether.

Out of 199 employees referred from Grimmway’s workers’ compensation department, 197 ended up on unpaid leave. This case illustrates a broader problem where employers use the interactive process as a mechanism to push out injured workers rather than a tool to keep these workers employed.

08/18/2025

California Extends Workplace Safety Protections to Domestic Service Workers

California is extending workplace safety and health protections to domestic workers (housecleaners, caregivers, gardeners, etc.) employed by businesses for the first time. The expansion of these protections was enacted through Senate Bill 1350 which was signed into law in 2024 and took effect on July 1, 2025. The law requires employers to comply with the California Occupational Safety and Health Act and the related regulations in Title 8 of the California Code of Regulations.

Under SB 1350, an entity that hires household domestic service workers on a temporary or permanent basis will be treated as an employer subject to the State’s workplace safety rules. These rules mandate that employers establish and maintain injury and illness prevention programs, inspect workplaces for hazards, provide personal protective equipment when required by law, and report serious workplace injuries or fatalities to Cal/OSHA immediately. Domestic workers will also have the right to access their employer’s safety plan, receive hazard training, and request corrections to unsafe conditions without fear of retaliation.

The law will also apply in certain circumstances to private homeowners who hire domestic workers. While individuals employing workers for “ordinary household domestic tasks” like cleaning, cooking, and caregiving are exempt, homeowners who hire for higher-risk work like mold remediation, fire cleanup, or home construction are not exempt. SB 1350 also contains anti-retaliation provisions. Employers are prohibited from threatening, firing, demoting, or suspending workers for reporting hazards, filing complaints, refusing unsafe work, or participating in an investigation.

Send a message to learn more

08/11/2025

In California, a cumulative trauma claim in workers' compensation refers to injuries resulting from repetitive work activities over time, rather than a single event. This contrasts with "specific injuries" which are caused by a single, identifiable incident. To be eligible for workers' compensation, the employee must demonstrate the injury arose out of and in the course of employment. Furthermore, the claim must be filed within one year of the date the employee knew or should have known the injury was work-related.

Understanding Cumulative Trauma Injuries:

Repetitive Activities:
Cumulative trauma injuries develop gradually due to repeated physical or mental stressors on the body.

Examples:
Common examples include carpal tunnel syndrome from typing, tendonitis from repetitive motions, and back or neck pain from poor ergonomics.

Distinction from Specific Injuries:
Specific injuries occur due to a single incident (e.g., a fall, a sudden impact), while cumulative trauma develops over time from repeated exposure to work-related stressors.

Time Sensitivity:
Employees must be aware of the one-year statute of limitations for filing a claim. The clock starts when the employee knows or should have known the injury is work-related, even if the injury develops years later.
Causation:

Employees must prove the injury is work-related, meaning it was caused by their job duties.

Seek advice from legal counsel: Obtain a free consultation with a workers' compensation attorney to understand your rights and navigate the complex claims process.

04/21/2025

Fraud in the CA Workers' Compensation System

Two recent criminal cases out of Southern California spotlight the ongoing problem of employer workers’ compensation premium fraud and the harm it causes to both injured workers and law-abiding businesses. In San Diego County, the owner of GPS Plumbing pleaded guilty to underreporting millions in payroll, leading to over $1 million in restitution owed for unpaid workers' compensation premiums. In Los Angeles, two business owners were sentenced after investigators uncovered a $21 million underreporting scheme across their delivery companies. In both cases, employers fraudulently cut corners to avoid paying for the insurance coverage their workers were legally entitled to.

Misclassifying employees, underreporting payroll, or failing to obtain workers’ compensation coverage exposes workers to significant risks while giving dishonest employers an illegal competitive advantage. These criminal practices drive down overhead, enabling fraudulent companies to submit lower bids to undercut their law-abiding competitors. According to the California Department of Insurance, insurance fraud, including employer premium fraud, costs the state about $15 billion annually. It’s the second-largest economic crime in California, behind tax evasion. Unfortunately, while the system sees massive losses due to employer schemes, public focus too often remains fixated on the myth of rampant worker fraud, despite studies and audits showing it accounts for less than 3% of claims in California.

This misinformation has consequences. Irresponsible rhetoric from the insurance industry fuels suspicion toward injured workers, casting doubt on legitimate claims. Applicant attorneys know firsthand that most applicants seek nothing more than the medical care and the temporary income they need to get back on their feet. Employer fraud not only harms workers directly but also undermines public trust in the very system designed to protect them.

12/03/2024

A Southern California truck driver, who was fired by Walmart which falsely accused him of workers compensation fraud, has been awarded $34 million by a jury in California Superior Court in San Bernardino County. The verdict, announced last week, was that Jesus Fonseca should receive $25 million in punitive damages and $9.7 million in actual damages from the retailer. Fonseca, who worked at Walmart's Apple Valley Distribution Center (pictured above) for 14 years, sustained injuries in a 2017 vehicle accident and sought workers’ compensation along with accommodations for his disability. Despite his medical restrictions, Walmart failed to provide modified duties, instead placing him on medical leave.

Walmart then hired an investigator who misinterpreted Fonseca’s personal activities and accused him of fraud. After Fonseca was seen driving a personal car on a trip with family, Walmart fired him for "integrity violations" without engaging in a discussion or addressing his requests for accommodation. After being unable to find work due to the fraud allegations, Fonseca sued Walmart for discrimination, retaliation, and other violations under California’s Fair Employment and Housing Act.

Fonseca’s lawyer David deRubertis hopes the verdict is the beginning of change at Walmart but also thinks what was done to Fonseca was part of something larger, happening against all of the company’s truck drivers. “We believe the evidence at trial showed that Walmart’s defamation of Jesse was part of a broader scheme to use false accusations to force injured truckers back to work prematurely or, if not, terminate them so that Walmart can cut down workers’ compensation costs.”

07/22/2024

Good op-ed from a retiring work comp attorney.

“In the past decade we have seen the cost of living skyrocket in California. The cost of housing, food and fuel have gone up, but so have wages, The minimum wage is now $16 an hour for most w…

06/03/2024

Appeals Board panel revisits Hardesty By Hon. Susan V. Hamilton, Former Assistant Secretary and Deputy Commissioner, California Workers’ Compensation...

06/03/2024

Employer work comp fraud in California’s workers' compensation system continues to be a significant issue, as evidenced by recent high-profile cases involving substantial payroll underreporting. It is estimated that workers' compensation employer fraud costs the state between $1 billion to $3 billion per year. These cases not only underscore the prevalence of such fraudulent activities by employers but also highlight the intricate schemes used by business owners to cheat workers, other employers, and insurance companies.

The proprietors of a janitorial company in Fontana, were recently charged with multiple felony counts of insurance fraud. An investigation by the California Department of Insurance revealed that the owners underreported over $2.4 million in payroll. This underreporting was a calculated move to reduce their workers' compensation insurance premiums and evade payroll taxes.

In a similar case, the former owner of TKJ Trucking in Fresno, is facing charges for underreporting more than $2 million in payroll. TKJ Trucking's fraudulent activities came to light following the death of an employee inside a company-owned truck. Although the death was from natural causes, it was discovered that the deceased, who had been a truck driver for 15 years, was misclassified as a salesperson—a role with significantly lower workers' compensation costs. Between December 2018 and December 2021, TKJ Trucking reported less than $1 million in payroll when the actual amount exceeded $3 million. This discrepancy was identified during an audit by the California Department of Insurance.

These cases are significant as they illustrate the ongoing challenges within California’s workers' compensation system. Fraudulent activities by employers not only undermine the financial integrity of insurance systems but also place employees at risk by depriving them of necessary coverage.

10/30/2023

Last week the DWC convened a virtual stakeholders’ meeting to discuss problems with Medical Provider Networks (“MPNs”) in California’s Workers Compensation system.

Doctors, claims administrators, employer representatives, managed care networks, a workers’ compensation judge, and the California Applicants’ Attorneys Association, among others were there.

Here are some sad truths about MPNs.

• Obtaining authorization to see a treater in the MPN can be delayed by months, when written authorization is required even though the network of doctors is “managed” and chosen by the employer.

• A workers comp judge who spoke at the meeting reported that over 40% of the cases set on his calendar are on “failure to authorize” even though the injury is not disputed.

• Determining the correct MPN from which an injured worker can receive treatment can be impossible. Often an injured worker receives a voluminous amount of correspondence from the carriers without any indication of which MPN is applicable.

• There is no easily accessible database of carriers and their corresponding MPN links available on the DWC website.

• Many MPN lists contain doctors who are deceased, or do not currently treat/have never treated workers compensation patients, or are unavailable for a myriad of reasons. Auditing requirements are not enforced to clean up these non-functioning MPN lists.

And there’s more, but what you need to know is that these treatment delays and MPN mistakes are extremely costly and detrimental to an already broken workers compensation system.