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Fighting employee fraud in California workplaces

The costs incurred by California business owners and taxpayers when employees misrepresent injuries or exaggerate compensation claims are often substantial. An employer has every right to protect business interests by aggressively investigating suspected employee fraud and pursuing justice when a situation warrants legal action. Some say that one of the best means of defending oneself against frivolous workers' comp claims is to take steps to prevent them altogether.

Many employers have found that installing monitoring equipment in the workplace is a successful way to deter fraud. Discussing employee fraud with workers can also help prevent potential trouble further down the line. Letting workers know that fraud will not be tolerated, as well as encouraging integrity in the workplace aids employers in building a strong and positive morale between employees and business owners.

Another way employers can protect themselves against those attempting to defraud the system is to raise awareness regarding potential signs that may help identify a worker who poses a fraud risk. Someone who often exaggerates symptoms of an injury or illness, or jumps from job to job, as well as a worker who seems to evoke skepticism among fellow employees might give an employer pause for concern. Any employer who is concerned about suspected workplace fraud can retain the help of an experienced workers' compensation lawyer to further investigate the situation.

Often, one of the first ways a frivolous claim is brought to light for a California employer is by word-of-mouth in the workplace. Paying attention to such conversations can help alert a business owner of employee fraud. An experienced attorney can assess the validity of a claim and offer guidance to an employer regarding the swiftest and most economical way to resolve a claims issue.

Source:, "10 Ways Employers Can Prevent Fraud", Accessed on March 1, 2016

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