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Employers can be proactive in stopping employee fraud

The cost of workers' compensation insurance has been an increasingly prevalent concern for many employers as of late. Due to rising premiums, employers in California are looking to do whatever they can to control costs. This includes employers being more vigilant when it comes to detecting employee fraud.

One way to help reduce the chances of employee fraud is to make sure that employees understand their employer's policy surrounding workers' compensation. Workers should have a strong grasp on available benefits, as well as obligations, related to obtaining those benefits. Company policy should clearly state that suspicions of employee fraud will be investigated. The policy should also state that the employer will take legal action against employee fraud when required.

Comprehensive investigation of claims for workers' compensation benefits will also help in stopping potential employee fraud. Employers should investigate claims to ensure accuracy. Many times employees may overstate their injuries for one reason or another. Also, investigating a workplace accident can help to ensure that changes are made to reduce the chances of the same accident occurring again. Additionally, employers may want to remind employees that workers' compensation fraud is considered a crime that can result in significant punishment.

However, if employee fraud is discovered, the employer should be ready to take the necessary legal action in California. By efficiently navigating through the proper legal channels, an employer can prevent significant financial damage caused by fraudulent workers' compensation claims. Therefore, comprehensive research of the correct legal procedure, as well as relevant laws, is essential.

Source:, "9 steps to reduce workers' comp fraud", May 13, 2015

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