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Employment Development Department
Employment Development Department

Report Fraud

State Disability Insurance (SDI) defines insurance fraud as any claim for SDI benefits (Disability Insurance or Paid Family Leave) where a person, alone or in cooperation with another person, makes a false statement, provides wrong information, or withholds facts for the purpose of collecting SDI benefits. For example, filing a claim with Disability Insurance for an injury or illness that does not exist or helping another person file a false claim is insurance fraud.

It is a violation if you purposely make a false statement or knowingly conceal facts in order to obtain the payment of any SDI benefits. A violation is punishable by prison time, a fine of not more than $20,000 or both. To detect and prevent fraud, SDI continually monitors claim payments, actively investigates suspicious activity, and will seek repayment and conviction through prosecution.

If SDI finds that anyone has falsely certified the medical condition of any person in order to obtain Disability Insurance or Paid Family Leave benefits with the intent to defraud, whether for yourself or for any other person, the Employment Development Department shall assess a penalty against you in the amount of 25 percent of the benefits paid as a result of the false certification.

To read the full text of the code regarding fraud, please see the California Unemployment Insurance Code (CUIC), sections 2101, 2116, 2122, and 1143.

To report Disability Insurance or Paid Family Leave fraud:

Note to Business Owners/Employers:

To prevent fraud, please respond immediately if you are not the employer shown on the DE 2503 or DE 2503F, or if the claimant:

Note to Physician/Practitioner:

To prevent fraud, please respond immediately if you are not the physician/practitioner of the claimant or care recipient shown on correspondence that you receive from SDI or if the patient:

You may be asked to verify that you submitted medical data, to answer some brief medical questions, or submit copies of medical records.