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California's State Compensation Insurance Fund (SCIF), the state's largest workers' compensation insurers, has filed a lawsuit against a staffing company for a staggering $50 million.

The suit was lodged against Select Staffing Co. Inc. after a jury found the firm guilty of fraud. Santa Barbara-based Select Staffing was charged with avoiding workers' comp premiums through a "piggy-backing" scam where Select Staffing illegal used another (and now defunct) staffing firm's workers' comp policy. By doing so the temporary staffing agency was able to reduce its experience modification and pay much lower premiums.

Experience modifications are used to determine a business’s premium calculation. The lower the experience-modification, the lower the premiums. Select Staffing's ex mod was 300; and the other firm, Onvoi, had an ex mod of 70. The lower the experience modification figure, the lower the business' premiums.