S.C. reforms workers’ comp fraud, injury reporting laws
Legislation gets tougher with cheaters and closes state’s Second Injury Fund
Employers who lie about what their workers do to save money on workers’ compensation premiums would face fines and prison time under an agreement reached by South Carolina legislators.
In addition to toughening fraud penalties, the legislation calls for new standards on how injuries are reported and what is covered.
The agreement reached on June 7, which needs approval from the House and Senate when they return for a special session June 19, also requires workers and their physicians to provide more specific information about their injuries.
“I think this is a fair bill that takes a first step toward improving our business climate in South Carolina,” said Cam Crawford, executive director of the South Carolina Civil Justice Coalition, a business owner group.
The legislation can be particularly harsh on employers and insurers who lie and commit fraud. For example, if an employer lies about employees’ work and saves more than $10,000 on premiums, the employer could be fined up to $50,000 and face five years in prison. Insurers that don’t provide accurate information are subject to similar penalties.
Employers who don’t buy workers’ compensation would face fines of $1 for each worker, each day instead of the 10 cents under the current law. The fine would be capped daily at $100.
The measure also defines repetitive trauma as an injury; clarifies how much can be paid for shoulder or hip injuries; and allows employers more broadly to challenge back injury claims.
The legislation also phases out the South Carolina Second Injury Fund that was set up to help injured workers rejoin the work force. But changes in the law during the past few years caused its losses to balloon, and employers and insurers this year faced assessments of nearly $200 million.
The fund will be phased out by 2013 and won’t consider claims from injuries that happen after next June.
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