CA AB686

Expands prohibition on using runners, cappers, and steerers to include acting directly as these individuals to procure clients or patients for workers' compensation or insurance claims.

Establishes civil penalties of $5,000 to $10,000 per violation plus up to three times the claim amount, with authority for district attorneys, Insurance Commissioner, and interested persons to bring civil actions.

Authorizes private parties to bring qui tam-style civil actions on behalf of the state, with recoveries split between the private party (30-50%), governmental agencies, and the General Fund for fraud prevention efforts.

Provides whistleblower protections for employees who participate in fraud actions, including reinstatement, back pay, and attorney's fees if they face retaliation.

Removes original provision that would have prohibited referring injured workers to lawyers, narrowing the bill's scope to insurance fraud prevention only.