Employment Law

Preventing Workers’ Compensation Fraud Part 2

In this two-part article, we are discussing how employers can implement procedures to help prevent fraudulent workers’ compensation claims. In the first section, we discussed how to create a positive work culture, perform background checks of applicants, and establish a zero tolerance policy for fraudulent claims. In this section, we will discuss other actions employers should take if they suspect a worker is filing a fraudulent claim. Remember, if your business needs legal counsel related to workers’ compensation law, contact a workers’ compensation defense attorney in Florida.

Employees Reporting Incidents

It’s critical that employers have a system in place for reporting injuries. If an accident transpires at your workplace, workers need to immediately report the incident to receive treatment. Similarly, workers need to be made aware that they can report fraud anonymously to a supervisor. Because employees in a workforce often have a “pack mentality,” employees need to feel safe when notifying the company of misconduct.

If an employee does report a false claim and you determine this to be accurate, you may want to reward that employee for “doing the right thing.” Although you don’t want to promote these types of rewards too much, as this can raise suspicion in the workplace, this can be done on a case-by-case basis discreetly.

Employers Reporting Fraud

You should never assume that an employee is filing a fraudulent claim; however, if you see the warning signs and determine that an employee did in fact file a fraudulent claim, this needs to be reported to your insurance company immediately. In some cases, law enforcement may also need to be notified. Of course, as this is a serious allegation, employers need to do their due diligence and provide the insurance company with as much information as they can. The insurance company will then begin an investigation into the incident.

Fraud Can Lead to a Criminal Conviction

Employers and their employees both need to understand that committing workers’ compensation fraud is a serious crime that can result in criminal charges, jail time, costly fines, and even losing your business. If convicted, an employee will have a stain on their criminal record for future job applications. If an employer is convicted, the reputation of their business could be ruined. If you are an employer and you detect fraud in your workplace, or you want to implement procedures to help prevent fraudulent claims, consult with a workers’ compensation defense attorney in Florida. We can provide you with the right guidance to ensure your business is protected from false claims.

If you would like to speak with a Florida workers’ compensation defense lawyer, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.