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.
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.
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.
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.
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.
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.
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.
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.