California Workers’ Comp Agency Dismisses 292,000 Unresolved Liens

The California Division of Workers’ Compensation (DWC) reported that it had dismissed more than 292,000 unresolved liens, belonging to claimants who failed to file the proper forms.

New legislation effective this year, SB 1160, requires all lien claimants that filed a lien during the period of January 1, 2013 through December 31, 2016, and paid a filing fee to file the Supplemental Lien form and 4903.05(c) Declaration forms by July 1, 2017.

According to the agency, Labor Code 4903.05(c) was amended as part of the new legislation’s reform measures to combat workers’ compensation fraud.

According to the state’s Department of Industrial Relations, the bill adds requirements that will assist in verifying a lien is legitimate. In addition, the law requires the lien be filed by the lien holder only and liens owned by providers who have been indicted or charged with crimes be stayed until the disposition of criminal proceedings.

SB 1160 also requires that all lien claimants file an original bill with their lien.

Last month, the DWC reported more than 441,000 supplemental lien declarations had been filed. This represented half of the 882,648 liens filed in California’s workers’ compensation system between January 1, 2013 and December 31, 2016.