Draft
Employer Standing Act
Model Policy
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}
Approved by ALEC Board of Directors on December 1999.
Reapproved by ALEC Board of Directors on January 28, 2013.
Reapproved by ALEC Board of Directors on November 16, 2017.