California AB1398 amends workers' compensation law to prohibit certain referrals and financial interests in service providers.

California AB1398 amends the Labor Code to prohibit interested parties from making referrals or using services from entities in which they have a financial interest. This includes prohibiting compensation based on the volume or value of referrals. The bill defines "interested party" to include injured employees, employers, insurers, claims administrators, and network service providers. Violations are misdemeanors, with additional civil penalties and disciplinary actions for attorneys. The bill also mandates disclosure of financial interests in entities providing services.

California AB1398 amends workers' compensation law to prohibit certain referrals and financial interests in service providers.

California AB1398 amends the Labor Code to prohibit interested parties from making referrals or using services from entities in which they have a financial interest. This includes prohibiting compensation based on the volume or value of referrals. The bill defines "interested party" to include injured employees, employers, insurers, claims administrators, and network service providers. Violations are misdemeanors, with additional civil penalties and disciplinary actions for attorneys. The bill also mandates disclosure of financial interests in entities providing services.