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Many California employers face workers' compensation fraud

Whether a business owner has a small payroll or employs large numbers of workers, profitability may be at risk when employees attempt to defraud the system. Workers' compensation fraud is an ongoing problem in many California areas, including Los Angeles. Facing the legal challenges presented by such situations is often made easier through experienced legal guidance.

One of the most common forms of fraud in the workplace occurs when a worker files a false injury claim. It may be that the severity of an injury is exaggerated, or that documentation suggests an injury took place on the job when, in fact, it happened elsewhere. These types of fraudulent claims can cost business owners to suffer increased premiums and may bilk various other entities out of thousands of dollars in the meantime.

Although most workers are honest, the negative effects caused by the few who attempt to defraud an employer for personal gain are often serious and long-lasting. Committing fraud against an employer is a criminal offense. Those who stand accused of such crimes may face potential termination of employment, as well as possible time in prison and other significant consequences for their actions.

There are immediate actions a California business owner can take if an employee is suspected of workers' compensation fraud. A first logical step would be to retain experienced legal representation from an attorney in the area. Every situation is different and making informed decisions according to the law and available options is often crucial toward obtaining a positive outcome.

Source: insurancefraud.org, "Workers compensation scams", Accessed on May 10, 2016

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