Two restaurant owners may be facing possible prison time for their role in trying to defraud the government and avoid protecting their employees. The California Labor Commissioner responded to an anonymous complaint concerning the lack of workers' compensation insurance for employees at the restaurant. By law, the owners must provide the protection for all of their employees or face heavy fines and penalties.
A California attorney's office is charging a local contractor with several charges of workers' compensation fraud. The contractor who runs several construction companies, including a pool company, is facing most of the charges and has pleaded not guilty. He purportedly failed to report his pool construction employees on his workers' compensation policies so that he can lower his insurance premiums.