Injured workers rely on the workers’ compensation system to provide fair settlements, but some employers and insurance companies manipulate the process to push inadequate deals. The Vazquez case exposed how Employers Outsourcing attempted to rush a settlement without providing the required medical records or meeting legal requirements. This follows a pattern seen in Camacho v. Target Corp., where the WCAB emphasized the need for strict judicial review by compensation boards to prevent unfair settlements.

How Employers Outsourcing Attempted to Rush an Unfair Settlement 

The Vazquez case highlighted how Employers Outsourcing tried to fast-track an incomplete settlement through the system. The company attempted to resolve the claim without submitting key medical records, making it impossible for the court to assess whether the settlement was fair.

• No Supporting Medical Evidence – Employers Outsourcing failed to provide adequate documentation explaining the basis for the settlement amount, leaving the injured worker without the medical treatment needed for recovery. 

• Attempted Avoidance of Liability – The company structured the settlement to sidestep responsibility, despite evidence suggesting the worker was entitled to more compensation benefits. 

• Regulatory Non-Compliance – The settlement did not meet legal standards outlined in California Labor Code 5001, which requires judicial oversight by compensation boards to prevent unfair agreements.

The WCAB refused to approve the settlement and flagged the employer’s conduct as a serious attempt to deprive the injured worker of a fair resolution. 

Reinforcing the Need for Fair Settlements 

The Camacho v. Target Corp. decision reinforced why workers’ compensation settlements must undergo judicial review. In this case, Target Corp. attempted to settle a claim without proper medical evidence or clear justification for the settlement terms.

The WCAB ruled that all settlements must be reviewed to ensure they are in the injured worker’s best interest. The board emphasized that: 

• Judges have the authority to reject settlements that lack medical support, including the proper impairment rating. 

• Employers and comp insurance adjusters cannot pressure workers into settlements that undervalue their claims. 

• A settlement must be based on factual evidence, not employer-driven financial motives that aim to reduce compensation costs.

• This ruling set a precedent, confirming that courts must actively protect workers from manipulative settlement tactics and compensation fraud.

Common Settlement Scams and How to Spot Them

Companies looking to minimize payouts often employ deceptive tactics. Injured workers should watch for these red flags: 

• Pressure to Settle Quickly – Employers push for fast settlements before medical conditions fully develop, especially in cases involving minor injury. 

• Lack of Medical Documentation – If no supporting medical records are provided, the settlement amount is likely arbitrary and unfair. 

• Misrepresentation of Benefits – Employers and health insurers may falsely claim that compensation benefits will expire if a settlement isn’t accepted. 

• Waivers Hidden in Fine Print – Some agreements include clauses that strip workers of their right to future benefits, even for conditions that worsen. 

Workers have the right to legal counsel before agreeing to any settlement. If something seems off, demand full medical documentation and consult a compensation lawyer.

Compensation Surveillance

Compensation Surveillance and Investigations To avoid paying legitimate claims, some insurance companies and comp insurance adjusters hire workers comp investigators to monitor claimants for signs of fraudulent activity. While investigating bogus injuries is necessary to prevent compensation fraud, excessive compensation surveillance can be used to intimidate workers into accepting unfair settlements.

Health Policy and Medical Bills Medical bills continue to be a significant concern for injured workers. A fair settlement should account for current and future provider bills related to medical treatment. Health insurance should complement workers’ compensation insurance to cover long-term care needs. However, some health insurers may attempt to shift costs back onto the worker, increasing auto premiums and other expenses. Understanding your health policy can help you avoid hidden costs and secure the compensation you deserve.

Workers must stay vigilant against unfair settlements and exercise their rights to full compensation benefits. Report scams, consult a compensation lawyer, and demand full transparency to ensure a just resolution.

How to Protect Against Fraudulent Settlements 

• Request Complete Medical Records – A fair settlement must be based on independent medical evaluations, not employer-provided estimates or comp surveillance reports. 

• Consult an Attorney – Workers should never sign a settlement without review by a legal expert who understands workers’ compensation law and can assess provider bills. 

• Verify Insurance Coverage – If a settlement seems suspicious, it’s worth checking whether the employer actually has valid workers' compensation insurance. 

• Watch for Bogus Injuries – Some employers attempt to downplay injuries to avoid providing fair medical treatment and compensation benefits. 

If you believe you’ve been pressured into an unfair settlement, report scams to the California Department of Industrial Relations. Suspect fraudulent insurance coverage? Submit questionable workers’ comp certificates at CheckMyCert.org.