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Many employers worry about employee fraud, yet remain unprepared

Business owners in California should always be looking to reduce wasteful and unnecessary spending. Although many business owners and managers know how to make their daily operations more efficient, few know how to detect fraudulent workers' compensation claims. This can be important in keeping a business profitable, since employee fraud can cause workers' compensation premiums to increase, which ultimately costs businesses more money.

A recent survey illustrates this situation by polling small business owners regarding workers' compensation fraud. The report showed that one out of every five business owners feels ill-equipped to detect fraudulent workers' compensation claims. Approximately 13 percent of small business owners surveyed admitted they were concerned that one of their workers would commit workers' compensation fraud. Over 20 percent of small business owners stated they were unsure about their ability to spot a fraudulent claim.

Some small business owners have taken it upon themselves to install surveillance cameras to monitor workers while on the job. The survey revealed that 24 percent of small business owners have taken this step toward combating fraud. However, there are other ways in which business owners can detect fraudulent claims. For example, workers who have histories of filing claims with no witnesses or reporting injuries in an untimely manner may pose a risk.

However, when a small business owner in California does discover a case of employee fraud, it is important that the business owner knows what to do. It may be necessary to take legal action in order to defend the company's business interests against a fraudulent workers' compensation claim. Therefore, it is important to carefully examine and analyze the evidence with the aim of utilizing it in a legal strategy in order to prove an instance of employee fraud.

Source: businessinsurance.com, "Small-business owners struggle with workers comp fraud", Stephanie Goldberg, July 17, 2015

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