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June 2014 Archives

Work comp fraud indictment snares 15 medical workers

More than a dozen health care workers were indicted by an Orange County grand jury in connection with criminal charges stemming from an alleged workers’ compensation fraud scheme. Prosecutors believe that 15 people, including pharmacists, physicians and the head of a workers’ compensation claim management firm all played a part in orchestrating a scheme of bribes and kickbacks.

Are your employees properly covered?

In order to save money, a number of new businesses are resorting to using independent contractors and temporary employees to handle many of the operations the business needs in order to function. While workers’ compensation insurance can be pricey, it is a necessary expense for many businesses.

OSHA to probe Amazon after worker deaths

Online retailer Amazon has enjoyed quite a bit of media hype stemming from the impending release of its phone, which will enable consumers to, among many things, identify a product and compare it to what Amazon has in stock. It has also flirted with the possibility of using drones to deliver packages to a consumer’s front door.

Why insuring volunteers is a good thing for employers

Volunteering is not only a good way to give back to the community, it is a way for employees to make charitable contributions when they may not have the income to do so. It is an essential win-win for companies, whether they are multi-national corporations or small startups.

Samsung apologies to sickened chip workers

Samsung Electronics took the rare step of issuing a public apology to the families of those whose loved ones were workers in its semiconductor chip factories who had developed cancers. The apology was unprecedented with regard to the growing issue of cancer cases that workers have developed during their time with the company.

Aging workforce may change work comp plans

 While a number of our posts have focused on the potential for workers’ compensation fraud, it is possible that the number of fraudulent claims have risen because the number of benefits claims as a whole continue to rise. This is likely because the workforce is steadily aging. According to the U.S. Bureau of Labor Statistics, the average age of American workers has grown to 42.3 years old in 2012 from 34.2 years old in 1980.

Why a dancing hamster is accused of workers comp fraud

When you see commercial advertising Kia’s Rio, you may be attracted by the high-energy music, the vibrant colors, and even the car’s features. But the overwhelming draw of the commercials are the dancing hamsters, who are often shown in stylish outfits; including designer suits and sweatpants.

Employers must conduct basic investigations into fraud

Workers compensation fraud is the scourge of the industry. It costs billions per year in money essentially wasted on people who are not legally entitled to benefits. It never ceases to amaze us how may people attempt to circumvent  the system, but they still do. We have written a number of posts on how employees are caught by detectives from the California Department of Insurance and prosecuted for fraud, and the latest cases suggest that people will continue to hijack the system until they are caught.

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