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Employee fraud problematic in many California businesses

False workplace injury claims continue to cause many employers problems in California and throughout the nation. According to the National Insurance Crime Bureau as many as $7 billion worth of workplace injury claims turn out to be false each year. This type of employee fraud is a significant concern for many employers who are obligated to carry workers' compensation insurance to provide benefits to help pay medical bills and replace lost wages for employees injured on the job.

Some say that at least one out of every four workers' comp insurance claims filed in the United States are fraudulent. This type of illegal activity in the workplace can adversely affect bottom line interests, especially for small business owners who may be unequipped to properly investigate a situation. Repeated workplace injury claims may cost an employer when he or she is made to bear the burden of increased premiums further down the line.

There are certain red flags of which all employers will want to be aware for spotting potential employee fraud in the workplace. For instance, if a worker who is typically surrounded by other employees claims to have been injured on the job, but an employer is  having difficulty finding witnesses to confirm the worker's claim, the claim may be suspicious. Also, many employers have found that injuries reportedly said to have occurred on Mondays often have actually taken place over the weekend when workers were not working.

Basically, if a California employer doubts a worker's account of an alleged injury that has taken place, an experienced workers' compensation attorney can help investigate the situation. This can help in determining whether evidence exists to suggest employee fraud. If so, employers have every right to protect their interests and challenge any claim that results.

Source:, "Workers' Compensation: 5 Warning Signs of Fraud", Stephanie Faris, Accessed on Aug. 3, 2016

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