Reports for the Legislature

Fraud Prevention and Compliance
Annual Reports

Fiscal Year (FY) 2005 was the first year for the realigned Fraud Prevention and Compliance Program at the Department of Labor & Industries (L&I). The program is designed to emphasize fraud and abuse prevention, and support stability in the workers’ compensation system that covers 2.3 million workers and 161,000 employers.

In a workers’ compensation system that collects premiums and pays out over $1.4 billion in injured-worker benefits, the potential for fraud and abuse certainly exists. Detecting and preventing fraud is essential to maintaining the system’s financial integrity.

To continue an emphasis on preventing fraud and abuse in the workers' comp system, L&I:

  • Implemented provisions of ESHB 3188, Concerning liability to the Department of Labor & Industries for premiums, overpayments, and penalties, which the Legislature passed in 2004.
  • L&I designed and implemented Internet access for contractors to easily determine the premium status of their subcontractors. The department also conducts outreach workshops to educate contractors on their premium liability.
  • Made it easier for the public to report fraud online. The links on L&I’s Web site are easier to find and the online reporting forms are shorter and easier to use. A toll-free telephone line continues to be available to report fraud: 1-888-811-5974.

Fraud Prevention and Compliance Program — Return on Investment
Period Operating Costs Cost Avoidance Recovery/collections Return on Investment
FY 2010 $19.5 million $4.8 million $137.0 million 7.3 to 1
FY 2009 $17.1 million $7.9 million $128.2 million 7.9 to 1
FY 2008 $16.6 million $2.7 million $124.5 million 7.6 to 1
FY 2007 $14.7 million $4.9 million $139.2 million 9.8 to 1
FY 2006 $14.9 million $16.6 million $135.3 million 10.2 to 1
FY 2005 $13.6 million $7 million $104.9 million 8.2 to 1
FY 2004 $10.9 million $4 million $93.8 million 9 to 1


End of main content, page footer follows.

Access Washington official state portal

© Washington State Dept. of Labor & Industries. Use of this site is subject to the laws of the state of Washington.