Assembly Bill 1244

​Assembly Bill (AB) 1244 introduced new changes to the workers’ compensation system that take effect January 1, 2017.
As a major step to combat fraud in the workers’ compensation system, AB 1244 added Section 139.21 to the Labor Code, which requires the Division of Workers’ Compensation to suspend certain medical providers from participating in the workers’ compensation system, including those who are convicted of a felony or misdemeanor involving fraud or abuse of any patient, the Medi-Cal or Medicare programs, or the workers’ compensation system itself. Labor Code section 139.21 provides for a hearing process regarding the suspension and a special lien adjudication procedure to address pending liens of those providers who are suspended based upon a criminal conviction.
AB 1244 also made changes to Labor Code section 4906 related to the Attorney Fee Disclosure Statement, including requirements to ensure that the injured worker is informed of the specific district office location at which the injured worker’s case will be filed.