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Los Angeles Employer Workers' Compensation Law Blog

Fighting against employee fraud in California

Many plans and strategies help employers keep operating costs low and maximize productivity and profitability in the workplace. However, some things work against an employer, often hurting the bottom line and causing legal challenges for a business owner. Employee fraud ranks high in California as a detriment to business success, and employers are constantly trying to prevent such incidents from occurring on the job.

The attorneys at Sacks & Zolon, LLP, understand how damaging employee fraud can be to a business, and we also know that feigning a work injury in order to defraud the system and seek financial gain is against the law. Our experienced team of attorneys has successfully represented many employers against workers who have falsified workers' compensation documents. Many fraudulent employees end up in jail when employers take legal action against their unlawful behavior.

California employer defense needed when workers lie about injury

California employers often suffer many business and legal complications when workers are not forthcoming about supposed on-the-job injuries. Many incidents include workers filing claims, later to be discovered as having falsified documents in order seek personal financial gain. A strong employer defense is often crucial toward fighting against such fraud in the workplace.

The more evidence an employer can provide regarding a suspected fake work injury, the better chances may be that a claim will be denied. Although, an employer cannot force an insurance agency to deny an allegedly falsified claim, there is legal recourse available to fight against such fraud in the workplace. In most situations, employers will want to do all they can to avoid increased premiums and financial losses further down the line.

Workers' compensation fraud defense in California

It is unlawful for a California employee to collect wage replacement benefits after a workplace accident while earning an income at another job. Unfortunately for many employers, this is a common form of workers' compensation fraud. In another state, two employees in unrelated situations are facing charges for attempting to defraud the system.

One of the workers was employed as a baker when she claimed to have been injured on the job while escaping a robber. Apparently, she filed a claim stating that she had injured her back so severely that she was unable to return to her workplace duties. The problem seems to be that during the same time period, she was discovered to be earning more than $3,000 as a full-time nanny, as well as having been employed as a housekeeper for more than a month.

Employee fraud problematic for some California businesses

California employers are obligated to purchase workers' compensation insurance so injured workers can file benefit claims to help cover the cost of their medical bills and replace lost wages in the aftermaths of workplace accidents. However, because fault is not a factor in workers' compensation, employee fraud remains problematic for many businesses. No employer should have to suffer the financial repercussions and other business complications caused by fraudulent claims.

Often, the type of fraud an injured employee attempts to commit involves misrepresentation of an injury. For instance, a former deputy, age 45, was arrested on a recent Tuesday for supposedly lying about an injury he claimed happened on the job. Apparently, the officer filed a workers' compensation claim after he reached into the trunk of a patrol car and injured his back.

Many California employers face workers' compensation fraud

Whether a business owner has a small payroll or employs large numbers of workers, profitability may be at risk when employees attempt to defraud the system. Workers' compensation fraud is an ongoing problem in many California areas, including Los Angeles. Facing the legal challenges presented by such situations is often made easier through experienced legal guidance.

One of the most common forms of fraud in the workplace occurs when a worker files a false injury claim. It may be that the severity of an injury is exaggerated, or that documentation suggests an injury took place on the job when, in fact, it happened elsewhere. These types of fraudulent claims can cost business owners to suffer increased premiums and may bilk various other entities out of thousands of dollars in the meantime.

Legal challenges sometimes faced by uninsured employers

California law requires employers to purchase workers' compensation insurance to provide benefits for employees who suffer injuries on the job. Uninsured employers may find themselves facing serious legal challenges that might include criminal prosecution or substantial monetary fines. Navigating the legal system in such circumstances can be both complicated and stressful.

At Sacks & Zolonz, LLP,  we provide guidance and support to employers accused of lacking the required insurance. Our clear understanding of the law and experience in the courtroom allows us to offer advice as to how to minimize the consequences of not having required insurance in place. We are prepared to help you resolve any related workers' compensation problems.

Former postman admits attempt to defraud employers

In California and all other states, employee/employer relations fluctuate, ranging from benign and civil to highly contentious and legally challenging. When a worker attempts to defraud employers, the latter scenario is more likely the case. Every employer, however, is able to fight against such fraud in the workplace and is entitled to take formal legal action against any worker who has filed an unlawful injury claim or otherwise defrauded the system.

In an eastern state, a man formerly employed by the United States Postal Service is now schedule to serve 13 months in prison. Some time ago, he filed a workers' compensation claim saying he had injured his shoulder on the job. The 58-year-old collected compensation benefits and is said to have filed additional travel claims, seeking to be reimbursed for ongoing medical expenses.

Facing a false injured worker claim as a California employer

Taking care of one's employees through appropriate training, well-documented contracts and various other means of good management is par for the course for employers throughout California. In addition, employers typically understand the need for workers' compensation insurance that provides benefits to injured employees to help cover medical costs and lost wages in the aftermath of workplace accidents. However, an employer may also face significant legal difficulty when a false injured worker claim is filed.

Although most employers would like to think the best of their workers, more than one has been deceived by fraudulent injury claims. Fraud is committed when a worker claims to have been injured on the job, when the injury actually occurred outside the workplace. Others have attempted to take unlawful advantage of the system by exaggerating the severity of their work accident injuries.

California employer defense may involve video evidence

The running of a California business is comprised of many aspects related to finances, management and a myriad of other issues, including productivity and profitability. Any number of things can throw a wrench into the success of a business. Workers committing fraud by filing false compensation claims is definitely one of them. In such situations, several options may be available to build a strong employer defense. Often, this involves capturing video evidence of fraud in action.

There have been many reported incidents in which employees who have claimed to be unable to work due to injuries that happened on the job are seen in video surveillance films performing actions they supposedly are unable to do. For instance, a worker who claims to be unable to use his arm may then be seen on video using that arm to pitch at a softball game. Videos taken in similar situations have allowed employers to pursue justice against those who have unlawfully claimed compensation benefits for personal gain.

Workers' compensation fraud ongoing problem in California

Employers must keep close eyes on their companies in order to prevent employee schemes that may cause them to suffer substantial financial losses. Workers' compensation fraud is problematic in many areas, including various workplaces in California. Fortunately, an employer has the right to take legal action when employee fraud is suspected.

An experienced workers' compensation defense attorney is able to prepare aggressive representation on behalf of any employer who suspects that a worker has filed a fraudulent claim. Often, such situations include the exaggeration of a work-related injury or a claim that an injury occurred on the job, when, in fact, it happened outside the workplace. Repeated incidents of employee fraud can ultimately lead to increased insurance premiums for which employers will have to bear the cost.

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