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LRB-6199/1
MIM:emw
2021 - 2022 LEGISLATURE
March 9, 2022 - Introduced by Senators Wirch, Agard, Bewley, Carpenter,
Erpenbach, Johnson, Larson, Ringhand and Roys, cosponsored by
Representatives Sinicki, Andraca, Baldeh, Bowen, Cabrera, Conley, Drake,
Doyle, Emerson, Haywood, Hebl, Hong, Milroy, Neubauer, Ohnstad, Pope,
Shankland, Shelton, Snodgrass, Stubbs, Subeck, Vruwink and Spreitzer.
Referred to Committee on Labor and Regulatory Reform.
SB1052,1,3 1An Act to amend 102.125 (2) and 102.125 (3); and to create 102.125 (1m) and
2943.395 (1) (e) of the statutes; relating to: worker misclassification and
3providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, if an insurer or self-insured employer has evidence that a
worker's compensation claim is false or fraudulent, the insurer or self-insured
employer must generally report the claim to the Department of Workforce
Development. If, based on the investigation, DWD has a reasonable basis to believe
that criminal insurance fraud has occurred, DWD must refer the matter to the
district attorney for prosecution. Also under current law, DWD may request
assistance from the Department of Justice to investigate false or fraudulent activity
related to a worker's compensation claim. If, based on that investigation, DWD has
a reasonable basis to believe that theft, forgery, fraud, or any other criminal violation
has occurred, DWD must refer the matter to the district attorney or DOJ for
prosecution. The bill extends these requirements to insurers who have evidence that
an application for worker's compensation insurance coverage is fraudulent or that
an employer has committed fraud by misclassifying employees to lower the
employer's worker's compensation insurance premiums.

Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB1052,1 1Section 1. 102.125 (1m) of the statutes is created to read:
SB1052,2,102 102.125 (1m) Application and premium fraud. If an insurer has evidence that
3an application for worker's compensation insurance coverage is fraudulent or that
4an employer has committed fraud by misclassifying employees to lower the
5employer's worker's compensation insurance premiums in violation of s. 943.395, the
6insurer shall report the claim to the department. The department may require an
7insurer to investigate an allegedly fraudulent application or alleged fraud by
8misclassification of employees and may provide the insurer with any records of the
9department relating to that alleged fraud. An insurer that investigates alleged fraud
10under this subsection shall report the results of that investigation to the department.
SB1052,2 11Section 2. 102.125 (2) of the statutes is amended to read:
SB1052,2,1712 102.125 (2) Assistance by department of justice. The department of workforce
13development may request the department of justice to assist the department of
14workforce development in an investigation under sub. (1) or (1m) or in the
15investigation of any other suspected fraudulent activity on the part of an employer,
16employee, insurer, health care provider, or other person related to worker's
17compensation.
SB1052,3 18Section 3. 102.125 (3) of the statutes is amended to read:
SB1052,3,419 102.125 (3) Prosecution. If based on an investigation under sub. (1), (1m), or
20(2) the department has a reasonable basis to believe that a violation of s. 943.20,

1943.38, 943.39, 943.392, 943.395, 943.40, or any other criminal law has occurred, the
2department shall refer the results of the investigation to the department of justice
3or to the district attorney of the county in which the alleged violation occurred for
4prosecution.
SB1052,4 5Section 4. 943.395 (1) (e) of the statutes is created to read:
SB1052,3,86 943.395 (1) (e) Presents an application for worker's compensation insurance
7coverage that is false or fraudulent or that falsely or fraudulently misclassifies
8employees to lower worker's compensation insurance premiums.
SB1052,3,99 (End)
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