One of the crucial changes introduced by AB 1260 is the increase in penalties for violations of these advertising regulations. Previously, those found guilty of making false or misleading advertisements could be fined up to $10,000 or face jail time up to a year. The bill increases the maximum fine to $15,000, thus enhancing the repercussions for non-compliance. This change signals a stronger stance on protecting workers from exploitation and deceptive advertising in the context of workers' compensation claims and benefits.
Assembly Bill 1260, introduced by Assembly Member Medina, amends Section 139.43 of the Labor Code pertaining to workers' compensation in California. The bill aims to strengthen the provisions regarding the advertising of services to injured workers. Specifically, it prohibits entities, except for physicians and attorneys, from making false or misleading statements about services or benefits related to workers' compensation. This prohibition aims to protect injured workers from deceptive advertising by ensuring that they receive accurate and truthful information about their benefits and services.
Notably, the bill exempts physicians and attorneys from these regulations, an exemption that may lead to discussions on whether the provisions adequately encompass all parties involved in advertising related to workers' compensation. While supporters argue that the bill's provisions are necessary to safeguard vulnerable injured workers, opponents may raise concerns regarding the adequacy of oversight and whether exemptions could inadvertently allow misleading advertising by professionals who are also integral to workers' compensation.