SB 536CALIFORNIASession 20252026

California SB 536 requires insurers to report premium fraud to the EDD and authorizes payroll data sharing

Original title: Workers' compensation insurance fraud reporting.

August 13, 2026

Workers' Compensation Insurance Fraud Employment Law Data Privacy Workers'compensationinsurancefraudreporting

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The Frame

What this does

This change creates a new mechanism for insurers to verify employer payroll data against state records to detect , while requiring insurers to reimburse the EDD for the costs of processing these data requests.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Insurers

Insurers gain the ability to request payroll data from the EDD and are required to report suspected premium fraud to the department.

Employers in California

Employers are deemed to have designated their insurer as an agent to access their payroll data held by the EDD upon purchasing a policy.

Employment Development Department

The department is required to process data requests, identify payroll discrepancies, and report findings to insurers.

What changed

Last recorded activity August 13, 2026.

What's next

Introduced.

Summary

This bill requires insurance companies to notify the Employment Development Department (EDD) of suspected workers' compensation and authorizes the EDD to share detailed payroll information with insurers to help identify discrepancies. By purchasing a workers' compensation policy, employers will now automatically designate their insurer as an agent authorized to request this payroll data from the state.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Why It Matters

Frequently Asked Questions

Will my employer's payroll information be shared with my insurance company?

Yes, under this bill, by purchasing a workers' compensation policy, an employer consents to the insurer acting as their agent to request payroll information from the EDD to verify records.

Who pays for the cost of the EDD providing this payroll data?

The requesting insurer is required to reimburse the EDD for the actual, direct costs of releasing or providing the information.

News Coverage

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Connected Entities

organizationEmployment Development Department“State department responsible for unemployment compensation and payroll records.”Map →

organizationFraud Division of the Department of Insurance“State agency involved in insurance fraud investigations.”Map →

organizationDepartment of Insurance“State department overseeing insurance regulation and fraud investigation.”Map →

otherWorkers' Compensation Insurance Fraud Reporting Act“Existing law governing fraud reporting requirements.”Map →

Sources

Open source document

openstates.org

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy40
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz20
Current news / social attention level

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