SB196 Alabama 2017 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2017

Title

Workers' compensation, additional penalties for fraud, restitution, termination of benefits, repayment, Sec. 13A-11-124 am'd.

Summary

SB196 expands workers' compensation fraud penalties, adds civil damages for victims, and allows immediate termination and repayment of fraudulent benefits.

What This Bill Does

First, it broadens fraud-related activity to include coercing others to lie, filing multiple claims for the same injury, and manipulating documents. It also covers false treatment claims or injuries not connected to work. Second, it lets victims recover compensatory damages, court costs, and reasonable attorney's fees from the person who committed fraud. Third, it authorizes the Department of Labor to immediately terminate or deny benefits and requires repayment with interest or deduction from future benefits. Fourth, it notes the bill creates a new crime and is exempt from certain local funding requirements.

Who It Affects

• Individuals who commit or attempt to commit workers' compensation fraud would face criminal penalties (Class C felony) and could be ordered to repay benefits with interest, have benefits terminated, and face civil liability.
• Employers and workers' compensation carriers (insurers) and other entities harmed by fraud could recover damages, costs, and attorney's fees from the fraudster, and benefit from immediate termination and recovery mechanisms for fraudulently paid benefits.

Key Provisions

• Expands criminal penalties to include coercing others to make false statements, multiple claims for the same loss, falsifying or destroying documents, and seeking treatment for non-work-related parts.
• Allows civil damages to be awarded to persons injured by fraudulent claims, including compensatory damages, court costs, and attorney's fees.
• Gives the Department of Labor authority to immediately terminate or deny benefits and forfeit compensation rights upon fraud findings; requires repayment with interest or deduction from future benefits.
• Requires repayment of fraudulently obtained benefits, with simple interest, and allows deduction from future benefits if needed.
• Authorizes the Department of Labor to adopt rules for implementing these provisions.
• The act creates a new crime and is excluded from certain local-funding expenditure rules under Amendment 621.
• Effective date: becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Workers' Compensation