The vast majority of employers across the state of California are required to provide their employees with workers’ compensation insurance coverage. Not only is this designed to protect your employees in the event of an on-the-job injury or illness, but it is designed to protect your business as well.
Unfortunately, workers’ compensation fraud is not uncommon. It is not unusual for employees to attempt to take advantage of their employer’s workers’ compensation insurance coverage. This can often lead to various fraudulent claims, increased insurance costs, and put your business at risk.
To recognize the signs, here are a few of the more common types of workers compensation fraud that you might see as a business owner in California. You can also learn more about the steps you should take if you suspect an employee of yours has committed workers’ compensation fraud.
According to EMPLOYERS, workers’ compensation fraud generally Falls into one of two categories: premium fraud and claimant fraud. Premium fraud is workers’ compensation fraud that is committed by businesses.
This might include a misrepresentation of payroll numbers, falsely changing important workers’ compensation documents in order to obtain lower premium costs, and misclassification of employees, for example.
Claimant fraud involves fraudulent claims committed by workers in order to receive benefits that they may not be entitled to. Some other examples of applicant/claimant fraud could include:
Other types of workers compensation fraud that you may find yourself dealing with as a business owner include:
If you suspect an employee of yours is engaging in workers’ compensation fraud, it is important that you take steps to report it. Here is how:
If you are a business owner who suspects an employee of engaging in workers’ compensation fraud, it is critical that you take action to protect yourself and your business.
Reach out to our experienced employers workers comp defense attorneys at Sacks Law Group, APC to find out more about what your next steps should be. You can complete our online contact form or give our office a call at 310-216-7778 when you are ready to take action.