Workers' Comp Fraud Charge Filed Against Arlington Man
Summary
The Washington State Department of Labor & Industries (L&I) has uncovered workers' compensation fraud by an Arlington man who allegedly collected over $80,000 in benefits while working for two out-of-state employers. The individual faces a first-degree theft charge, with a pre-trial hearing scheduled for April.
What changed
The Washington State Department of Labor & Industries (L&I) has filed a theft charge against Jon Paul Traff, an Arlington resident, for allegedly defrauding the state's workers' compensation system. Traff is accused of collecting over $80,000 in benefits after claiming to be too injured to work, while simultaneously being employed and paid by two out-of-state companies, Mission Foods and Flowers Baking Co. The investigation was triggered when Traff filed a second claim while already receiving benefits from a previous injury, despite working for the second employer.
This enforcement action highlights the importance of accurate reporting and compliance with workers' compensation laws, even for employees of out-of-state companies operating within Washington. The case underscores L&I's commitment to investigating and prosecuting fraud within the system, which can have significant financial impacts on employers and legitimate claimants. Companies operating in Washington, regardless of their headquarters, must adhere to state labor laws. The Washington State Attorney General's Office is prosecuting the case.
What to do next
- Review internal controls for detecting potential workers' compensation fraud.
- Ensure compliance with state workers' compensation laws for all employees, regardless of employer's headquarters.
- Report suspected workers' compensation fraud to L&I.
Penalties
Faces a first-degree theft charge, with potential penalties including fines and imprisonment.
Archived snapshot
Mar 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
L&I uncovers workers’ comp fraud by local employee of two out-of-state employers
March 25, 2026 #26-04 ARLINGTON — An Arlington man who worked for two out-of-state companies is facing a theft charge in connection with a Washington Department of Labor & Industries (L&I) workers’ compensation fraud investigation.
Jon Paul Traff, 49, is scheduled for a pre-trial hearing in April in Snohomish County Superior Court. He pleaded not guilty to a single count of first-degree theft in February.
According to the charging papers, Traff received more than $80,000 in workers’ compensation benefits after claiming he was too injured to work.
“After getting hurt at one job, and getting time-loss benefits for being too injured to work, Mr. Traff got hurt again at a second job, and tried to claim benefits for that injury, too,” said Randy Littlefield, deputy assistant director of L&I’s Customer Service, Compliance, and Public Safety Division. “This type of fraud hurts the employer, and hurts people with legitimate injuries who need help.”
L&I claims managers and investigators were alerted to the potential for fraud when Traff filed a claim with the second company, even though he shouldn’t have been working at all.
Out-of-state employers
In 2017, Traff worked as a district sales manager for Mission Foods. That May, he filed a claim with L&I for an on-the-job injury involving his back, neck and shoulders. He received workers’ compensation payments and worker retraining benefits.
In July 2024, Traff filed a second claim with L&I while working as an area sales director with a second firm, Flowers Baking Co. In reporting the injury, Traff said he worked at Flowers for a year and eight months.
L&I claims managers and investigators did the math: The second claim overlapped with the first. While Traff was working at Flowers he signed 78 worker-status forms telling L&I he was still too hurt to work from the injury at Mission. While at Flowers, he was paid a salary of more than $68,000.
Mission Food’s parent company is headquartered in Texas. Flowers Baking is headquartered in Oregon. Both have locations in the same Everett facility.
“Even if someone is working in Washington for an out-of-state company, they still need to follow the rule,” Littlefield said. “We’re watching to make sure they do.”
L&I oversees the state’s workers’ compensation system and helps injured workers heal and get back to work. The Washington State Attorney General’s Office filed the charges based on L&I’s investigation. ****
Report workers’ comp fraud If you see or suspect someone is cheating the workers’ compensation system, contact L&I's Fraud division (Lni.wa.gov/Fraud) or call 1-888-811-5974.
For media information: Matt Ross, L&I Public Affairs, 360-706-4857.
Connect with L&I:
Facebook (www.facebook.com/laborandindustries)
X (x.com/lniwa) Communication Services | www.Lni.wa.gov/news-events
Related changes
Get daily alerts for WA LnI News Releases
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from State Labor.
The summary, classification, recommended actions, deadlines, and penalty information are AI-generated from the original text and may contain errors. Always verify against the source document.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when WA LnI News Releases publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.