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Facing employee fraud head-on in California

California employers are at risk for increased premiums when workers claim benefits to which they are not entitled. Employee fraud is problematic in many companies. It exists in many forms, and astute employers are sometimes able to stop it in its tracks before too much damage is done.

In this state and elsewhere throughout the nation, many employers have been defrauded when workers make false claims regarding injuries that allegedly occurred on the job. In some situations, an employee may indeed have a legitimate need to file a claim because of an accident resulting in injury. However, if that worker exaggerates the severity of the injury or claims to be unable to return to work, then collects benefits while secretly working somewhere else, it is a problem.

Fraud often has a negative ripple effect throughout the company, which hurts the bottom line. Some employers face increased premiums, thereby soaking up monies that would be best spent elsewhere, such as in hiring new employees or increasing current workers' salaries. By closely monitoring the workplace and investigating each accident report, an employer may be able to minimize negative consequences by making it difficult for defrauders to succeed.

A California employer may not have the slightest idea about where to turn for help when employee fraud is suspected. Something many other employers have done is to immediately contact workers' compensation attorneys who then were able to determine whether evidence of fraud existed. From there, an experienced attorney knows how to assertively address the matter and is prepared to aggressively litigate any situation on behalf of an employer when necessary.

Source: wcb.ny.gov, "The Crime of Workers' Compensation Fraud", Accessed on Sept. 13, 2016

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