Bill > H1774

This bill proposes to amend Chapter 152 of the General Laws by adding a new section, 25V, to establish requirements and penalties related to workers' compensation audits. Specifically, it mandates that employers not in the construction industry be audited at least every two years, with more frequent audits possible based on factors like premium amount or business type. Employers in the construction industry who generate a significant amount of premium must be audited annually, and these audits may include physical on-site inspections. The bill also requires employers to provide necessary records and access for payroll verification audits, and failure to do so will result in a penalty of three times the most recent estimated annual premium. Furthermore, it clarifies that intentionally understating payroll, misrepresenting employee duties to avoid proper classification, or concealing information for experience rating modifications will be considered a violation of Chapter 93A of the general laws, enforceable by the attorney general. This new section will not apply to certain self-insurers or members of workers' compensation self-insurance groups.