San Rafael California Insurance Law Firm

A California security company owner has come under scrutiny for underreporting his payroll expenses in an attempt to lower workers compensation costs. Accused of cheating his insurer of $3.2 million, a San Jose business owner will face workers compensation insurance fraud charges.

His idea to operate two businesses as one entity for the sake of lowering insurance premium costs with their insurance carriers landed him in hot water. Noticeable reporting irregularities in the number of workplace injuries triggered an investigation. During an extensive investigation, it was found that workplace injuries were being underreported. Employees were being instructed to not report work-related injuries stemming from accidents occurring onsite.

California business owners often turn to an accountant to help manage their finances. Hiring such a professional can reduce the odds of paying too much in tax or being accused of breaking the law. However, it is possible that an accountant will engage in malpractice that could leave a company vulnerable to criminal or civil penalties. To prevent this from happening, accountants should follow either Generally Accepted Auditing Standards or Generally Accepted Accounting Principles.

If an accounting professional deviates from these guidelines, it could be a breach of contract. This is because most efforts to deviate from GAAP or GAAS are intentional, and that could be considered negligence depending on the facts of the case. As a general rule, an accountant must have had a duty of care toward a client that was not maintained. Furthermore, that breach of duty must be the proximate or direct cause of harm to the client.

Unfortunately, unfair competitions can hurt many consumers and businesses in California. Practices that are deemed to be unfair include trademark infringement, false advertising and misappropriation of trade secrets. Both state and federal laws aim to protect consumers and businesses from being hurt by such illegal acts. Consumer protection laws are generally distinct from those that protect companies from such activities.

Congress has the power to regulate commerce through the Commerce Clause in the Constitution. The federal government also derives such power through legislation like the Langham Act. The Uniform Trade Secrets Act further protects companies from having trade secrets or other sensitive information used against them by the competition. If a company believes that its rights have been infringed upon, it could seek both an injunction against the infringing party as well as monetary damages.

Restaurants are a unique kind of business. Manufacturing, sales and consumption all happen simultaneously. As a result, restaurant owners have to juggle several different responsibilities while managing the risks of the food service industry.

In this busy role, insurance coverage is extremely important. If an accident happens, California restaurant owners should be able to rely on their policy to help them return to business as usual. There are a few types of coverage that commonly save a restaurant’s bacon, so to speak.