SB91 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2018

Title

Workers' compensation, additional penalties for fraud, restitution, termination of benefits, repayment, Dept. of Labor to preserve certain information under certain conditions, Sec. 13A-11-124 am'd.

Summary

SB 91 would tighten penalties for workers’ compensation fraud, let victims seek civil damages, require the Labor Department to preserve fraud-related records and hand them to prosecutors, and require repayment with interest of fraudulently obtained benefits.

What This Bill Does

It expands the types of fraud related to workers’ compensation that can lead to criminal penalties, making several fraudulent acts a Class C felony. It also allows civil damages to be awarded to people injured by fraudulent claims and requires the repayment of fraudulently obtained benefits with interest to employers or carriers. The bill requires the Department of Labor to preserve relevant documentation when fraud is suspected and to provide it to prosecutors for review, and it allows the department to adopt rules to implement these provisions. Additionally, it sets rules about who pays medical expenses when an employer refers an injured employee to a doctor, and notes that the bill is treated as not requiring local-funds votes under certain constitutional provisions.

Who It Affects

• Individuals who file for workers’ compensation or otherwise participate in fraudulent activity related to a claim; they would face expanded criminal penalties and potential civil damages and repayment obligations.
• Employers and workers’ compensation carriers, who could recover fraudulently obtained benefits with interest, and who would be supported by the Labor Department’s record preservation and sharing with prosecutors.

Key Provisions

• Expands Section 13A-11-124 to include four fraudulent actions as Class C felonies: false or misleading statements, coercing others to provide false statements, presenting multiple claims for the same loss, and fabricating or destroying documents related to the claim.
• Allows civil damages to be awarded to persons injured by fraudulent workers’ compensation claims, including compensatory damages, court costs, and reasonable attorney’s fees.
• Requires the Department of Labor to preserve all documentation relevant to a suspected fraud and to provide this information to the district attorney or Attorney General for review; requires repayment of fraudulently obtained benefits with simple interest to the employer or carrier, with potential deduction from future benefits.
• Clarifies medical cost liability: when an employer refers an injured employee to a medical provider, the employer pays reasonable medical fees; if benefits have been terminated, the employer is only liable for services prior to termination.
• The Department of Labor may adopt rules to implement and administer these provisions.
• The act becomes effective on the first day of the third month after approval by the Governor.
• The bill is excluded from certain local-funds expenditure requirements under Amendment 621 because it defines a new crime or amends the definition of an existing crime.

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