Wisconsin Assembly Bill AB475

Wisconsin 2023-2024 Regular Session

• Introduced: 10/11/23
• Refer: 10/11/23
• Failed: 4/15/24

Caption

Worker misclassification and providing a penalty.

Impact

By implementing AB475, Wisconsin seeks to tighten regulations surrounding worker’s compensation claims and insurance coverage, potentially deterring fraudulent behavior among employers. The bill extends existing requirements for reporting fraud to include insurers who suspect that employers are misrepresenting employee classifications. This change reflects an effort to enhance the integrity of the worker's compensation system and protect both employees and legitimate businesses from the financial impacts of insurance fraud.

Summary

Assembly Bill 475 aims to amend current worker's compensation laws to address issues of insurance fraud, particularly concerning the misclassification of employees. It mandates that insurers report fraudulent claims and misclassifications to the Department of Workforce Development (DWD) and provides a framework for investigations and subsequent legal actions against violators. The bill emphasizes penalties for employers who knowingly misclassify employees to reduce their premiums, thereby creating a new crime related to application and premium fraud.

Contention

While supporters of AB475 argue that it is necessary to combat fraudulent practices that undermine the worker's compensation system, there may be concerns about the administrative burden it places on insurers and employers. Critics may also point out potential unintended consequences, such as discouraging legitimate claims or causing increased scrutiny that could lead to false accusations against employers trying to comply with regulations. The bill’s passage could lead to contentious debates concerning its implementation and the balance between oversight and excessive regulation.