Employee Fraud Can Adversely Affect Company Profits

February 10, 2016
Sacks & Zolonz, LLP
Workers’ Compensation Fraud

While an employer provides employees with the peace of mind that they will receive compensation for medical expenses in the event of workplace accidents, it is not uncommon for some workers to take advantage of the system and file false claims. Whenever a fraudulent workers’ compensation claim is authorized, the insurance premium of the employer increases. This can have an adverse impact on a company’s bottom line. Some California business owners may have little time to evaluate workers’ injury claims before they are filed with the workers’ compensation insurance system, and may unknowingly be the victims of employee fraud.

Even the federal government can be the victim of fraudulent workers compensation claims. A postal worker in another state was recently charged with concealment and falsifying medical information on a claim he filed with the workers’ compensation program of the Labor Department. The 51-year-old letter carrier is accused of making fraudulent statements that contained fictitious and false information related to his medical condition.

Court documents indicate that the postal worker received multiple disability payments from the insurance program. If this worker is convicted, his previous criminal records – if any – may influence the court’s sentence. However, he is entitled to a fair trial, and the burden of proof of guilt beyond a reasonable doubt will be on the government.

California business owners in the private sector may be wise to be on the lookout for fraudulent claims. Fortunately, experienced workers compensation attorneys who focus on protecting employers against employee fraud are available. Such a professional can educate a client about tell-tale signs that may need further investigation before injury claims are authorized for compensation.

Source: workerscompensation.com, “Ohio Letter Carrier Charged with Worker’s Compensation Fraud“, Feb. 9, 2016

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