Employers may face substantial financial losses when employees file false workers' compensation claims. Employee fraud can not only damage a company's economic standing, but can also harm a business's reputation. There are several things California employers can do to fight against negative employee activity in the workplace.
One publication stated that businesses, in total, may lose as much as $4 billion because of employee fraud and embezzlement crimes in the workplace each year. Many businesses are not able to withstand such grave financial losses. In addition, a fraud scheme might continue for as long as two years before an employer becomes aware of the situation. Small business owners suffer greatly with median losses of at least $200,000 in each fraud case.
Knowing what leads employees to commit fraud in the workplace is one means of fighting against it. Though no business owner wants to believe that employees are acting unlawfully on the job, it is within a company's best interests to request legal assistance to investigate any matter that raises concern. If an employer suspects that a worker has misrepresented an injury or has otherwise falsified a workers' compensation claim, it is appropriate to seek guidance from an experienced attorney who can act on behalf of the employer to resolve the situation.
Employee fraud in California will likely not be eradicated any time soon. However, employers can take immediate steps to protect themselves from further loss by contacting a workers' compensation attorney to conduct an investigation into a questionable claim. Should the attorney determine that there is evidence of fraud, guidance can be provided as to how best to proceed to legally address the issue.
Source: peelholland.com, "Employee Fraud in the Workplace", Accessed on April 6, 2016