The Employer Standing Act Exposed

The Employer Standing Act was adopted by ALEC's Commerce, Insurance and Economic Development Task Force on November 13, 1999, approved by the ALEC Board of Directors in December, 1999. According to ALEC.org, the Act was re-approved by the Board of Directors on January 28, 2013. (Accessed on 7/16/2015).

CMD's Bill Summary

This bill gives rights to corporations and employers at the expense of workers. In particular, it gives employers legal standing before Worker's Compensation boards and commissions, allowing the employer to argue that the employee's claim is fraudulent.

ALEC Bill Text

Summary

The Employer Standing Act gives employers legal standing before the appropriate board or commission to dispose of a workers’ compensation claim fraudulently filed by an employee.

Model Legislation

Section 1. {Short Title}

The Employer Standing Act

Section 2. {Legislative Declarations}

The state finds and declares that

A. Workers’ compensation fraud is the largest source of fraud within the property/casualty industry accounting for more than one-third of all property/casualty insurance fraud; and

B. The cost of workers’ compensation insurance fraud is passed on to employers in the form of higher premium costs; and

C. Employers should have the right to dispose of claims filed by employees convicted of workers’ compensation insurance fraud.

Section 3. {Definitions}

“Commission” means the state industrial commission or other board granted the authority to dispose of fraudulent workers’ compensation claims.

Section 4. {Employer Standing}

After an employee has been convicted of an offense involving a fraudulent workers’ compensation claim an employer has standing before the commission for the sole purpose of filing and seeking disposal of the claim.

Section 5. {Severability}

Section 6. {Effective Date}

Adopted by the CIED Task Force November 13, 1999.

Approved by the ALEC Board of Directors December 1999.