Sep. 29, 2017
Revised Labor Code section will be tested next week
A hearing on Thursday to address a controversial anti-fraud statute relating to workers’ compensation was upended by a state law passed this week that may weaken the plaintiffs’ central complaint. Gov. Jerry Brown signed Assembly Bill 1422 on Tuesday, amending two sections of California’s Labor Code that penalized medical service providers charged with fraud by imposing an automatic stay on all liens owed to them.
A group of medical service providers were ready to argue Thursday that a section of the California Labor Code violated due process because it allowed for their assets to be frozen indefinitely based solely on unproven accusations.
But on Tuesday, Gov. Jerry Brown signed a new law clarifying the Workers’ Compensation Appeals Board’s ability to resolve disputes about applying liens against medical service providers.
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