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Gov. Gregoire, Judy Schurke announce programs to help Washington business owners

For Immediate Release: August 10, 2010

OLYMPIA � Gov. Chris Gregoire today, along with Department of Labor and Industries Director Judy Schurke announced stepped up efforts and new programs that deliver a double boost to employers by getting tough on workers� compensation fraud � while giving a hand up to businesses that need help paying their premiums during the recession.

�Labor and Industries is saying to employers, �If you need help, talk to us,�� said Gregoire. �And if you�re working under the table, we�re after you and your competitors are helping us.�

Gregoire noted that L&I is moving forward with several actions, including the addition of a small team of investigators to sweep construction jobs on nights and weekends, the use of a new audit system and a strengthened partnership with the Attorney General�s Office to crack down on employers who don�t pay their workers� compensation premiums, medical providers who overbill and injured workers who file fraudulent claims.

Since 2004, L&I has increased collections by 46 percent, collecting nearly $770 million. The agency plans to build on its fraud fighting success this fall when it begins implementation of the Detecting Unregistered Employers (DUE) program. DUE will take advantage of new technologies to identify businesses that have failed to register with the state and pay into the workers� compensation system.

�For every dollar Labor and Industries spends to combat fraud, we�ve seen an eight dollar return,� Gregoire said. �By preventing and punishing fraud, we protect workers and honest businesses from unfair competition. Fraud in the workers� compensation system hurts our economy � honest businesses are undercut by those that don�t fairly participate in the system and workers pay more than they should when others claim more benefits than they deserve.�

At the same time, L&I is promoting a program to help business owners struggling during the national recession. L&I created the Employer Assistance Program to help employers with overdue workers� compensation premiums. The program allows business owners to extend payment of their balances over time, helping them to manage precious cash flow while adjusting to the down economy.

Jim Linder, owner of J. Linder Painting, LLC in Olympia took advantage of the program and said his company wouldn�t be where it is today without L&I�s help. �It�s nice to work with people who will give you a hand up instead of just playing hard ball with you,� said Linder.

Schurke also noted a transformation of L&I to help save valuable taxpayer dollars. Like private-sector businesses, L&I has adopted �lean� principles to reduce mailing costs, process medical payments and streamline benefit applications. L&I has already adopted 8 �lean� projects, and plans to have 40 underway in the next two years that will save taxpayers at least $2.5 million over the next two years.