October 7, 2019

California Work Comp Provider Combats Evolving Work Comp Fraud Schemes

FOLSOM, CALIFORNIA – Samuel Hale, LLC has joined the California-based organization, Employer’s Fraud Task Force to bring anti-fraud tools, solutions and resources to California employers.

Workers’ compensation fraud is a big business, costing our nation $30 billion each year, according to estimates by the National Insurance Crime Bureau (NICB). California work comp fraud is estimated to cost between $1 billion to $3 billion per year. Fraud is perpetuated by anyone who dishonestly gains a benefit to which they are not entitled. This can include medical providers, claimants, attorneys, adjusters, employers and other industry insiders.

Samuel Hale CEO and Founder, Mike DiManno was a speaker at The Big 2019 Fraud Fighting & Employment Law Conference in August. DiManno spoke about the fraud-fighting advantages made possible by Alternative Dispute Resolution (ADR) – a solution many employers don’t realize is available to industries outside of construction.

Founded in 2016, Samuel Hale has combated fraud and helped clients drive down their ex-mod factors by delivering workers’ compensation insurance with ADR through a carve-out agreement approved by the California Department of Workers’ Compensation. This program has been proven to reduce workers’ compensation costs by 50 to 80 percent in the light industrial, manufacturing and staffing industries.

ADR accelerates the claims process and supports an employer’s ability to manage the overall costs of their workers’ compensation program. This process advocates for the employee while expediting medical treatment and mitigating litigation liability. “This program is highly effective for accounts that are struggling with cumulative trauma claims, large reserves, and post-termination litigation,” DiManno explains.

While the State of California has passed by laws to curb medical provider and attorney fraud, new forms of fraud emerge daily. Recent fraud perpetuators include interpreter services and photocopying services. DiManno and his team strive to stay one step ahead with tactics to combat evolving fraud schemes.

“It’s only a matter of time until the California workers’ comp market hardens again,” DiManno explains. “Smart employers will enact fraud-fighting tactics and shore-up their claims experience now, so they are ready for the next market cycle,” DiManno says.

Employers and brokers who would like to take a stronger anti-fraud stance should request a free claims analysis at

About Samuel Hale

SAMUEL HALE, LLC helps protect California businesses from the unpredictable and high cost of employment and workers’ compensation coverage. Created in 2016, the company is dedicated to eliminating fraud and unnecessary litigation in workers’ compensation claims and reducing clients’ workers’ compensation insurance premiums. Visit for more information.

About Employers Fraud Task Force

Chaired by the Walk Disney Company, the Employer’s Fraud Task Force was founded in 1998. The organization studies, develops and communicates methods of combatting workers’ compensation fraud, waste and abuse. Learn more at


Ralph Kai
[email protected]
(855) 726-4253