California Judge Admits to Workers’ Comp Fraud Scheme
- Orange County Superior Court Judge Israel Claustro agreed to plead guilty to federal charges alleging he defrauded California’s workers’ compensation system.
- Prosecutors say he targeted the Subsequent Injuries Benefits Trust Fund by operating a medical group that submitted med‑legal reports for injured‑worker claimsWorkers’ Comp Executive.
- Claustro employed a physician previously suspended from the workers’ comp system to prepare evaluations tied to these filings.
- He is scheduled to appear in court on January 12 to face a mail‑fraud charge.
Mississippi Bill Seeks Major Increase in Workers’ Comp Benefits
- Mississippi House Bill 80, introduced on January 8, 2026, proposes increasing workers’ compensation benefits for disability and death cases to 100 percent of the state’s average weekly wage.
- The bill also raises the maximum total recovery by applying the higher weekly rate across 450 weeks.
- It updates disability provisions so permanent, temporary, and partial disability payments reflect the new benefit level.
- The legislation further revises eligibility rules for receiving death benefits to align with the updated compensation structure.
Oklahoma Ruling Ends Indemnity Clauses in Subcontractor‑Injury Cases
- An Oklahoma Supreme Court ruling ended the use of indemnity clauses that once shifted costs away from companies when subcontractor employees were injured.
- Those clauses required subcontractors to cover legal expenses even when the injured worker was already receiving workers’ compensation benefits.
- Without them, upstream companies now face greater financial exposure when subcontractor employees are hurt on the job.
- The decision is reshaping how businesses manage risk and handle worker‑injury claims.