Lawmakers hear support for database and QR-coded certificates to curb workers'compensation premium fraud

Representative LeBauch and construction-trade witnesses urged the committee to advance H.4061, legislation to combat workers'compensation premium fraud by creating a public database of certificates of insurance, QR-coded certificates, and insurer reporting of suspected fraud.

Representative LeBauch told the committee that fraudulent employers use labor brokers and shell companies to underreport payroll, misclassify workers, and avoid premiums, citing national and state-level cost estimates for premium fraud. "When these fraudulent employers skip workers compensation coverage, the consequences don't just stop at the job site," she said, noting uncompensated care and increased premiums for honest businesses.

Union leaders including Joe O'Brien (North Atlantic States Regional Council of Carpenters) and Matthew Capecci (United Brotherhood of Carpenters) described injured workers with no coverage and advocated for the bill to create an accessible record of coverage and seller/reporting requirements to deter fraud. Capecci emphasized that the bill mirrors recommendations from the Coalition Against Insurance Fraud.

Why it matters: Witnesses said premium fraud raises costs for taxpayers and honest contractors; it leaves injured workers without coverage and contributes to wage theft and unsafe practices.

Policy details: H.4061 would require insurers to submit certificates issued, include the name of the insured, insurer, expiration date, and a QR code on the certificate to allow instant verification. The bill would also require insurers to report suspected fraud to the Division of Insurance.

Process: Witnesses asked for a favorable report. No committee vote on H.4061 is recorded in the hearing transcript.

Ending: Proponents framed the bill as an enforcement and transparency measure that would level the playing field for honest employers and protect injured workers.