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Employee fraud continues to be problematic in California

It is unlawful to collect benefits through a workers' compensation claim if one is not entitled to them. Such employee fraud continues to plague many California employers. Schemes often involve false injury reports or exaggeration of the severity of injuries suffered in on-the-job accidents. 

There have also been situations where recovered injured workers have returned to their workplace duties while continuing to collect unemployment benefits without first reporting their incoming wages. If such fraud is determined, severe penalties may be incurred that include denial of benefits. A worker who has committed fraud may also face mandated restitution in the form of paying back any amount considered an overpayment due to non-entitlement.

There are various means for helping to prevent and detect fraudulent workers' compensation claims. Maintaining the highest levels of accepted safety standards and appropriate training of employees often lowers the risk of accidents occurring in the workplace.  However, in spite of employers' efforts to help workers avoid injuries, many continue to face problems because of fraudulent claims. Aggressively pursuing such matters in court may help employers protect their bottom lines and avoid increased premiums further down the road.

Any California employer who suspects employee fraud may take immediate action to investigate the matter by contacting a business attorney. Motives behind such acts often include a desire to seek personal financial gain by defrauding the system. If evidence suggests unlawful activity, an attorney can guide an employer through the process of obtaining a swift and fair solution to the problem.

Source: edd.ca.gov, "Fraud and Penalties: What You Need to Know", Accessed on Aug. 16, 2016

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