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How to reduce workers' compensation fraud

Since your employees may be tempted to abuse your workers' compensation benefits, you should be proactive about preventing fraudulent claims. You can take this precautionary measure through clear procedures regarding workplace injuries, as well as regular communication with your employees. Here at Sacks and Zolonz, our objective is to protect you from unnecessary and fraudulent claims.

Before an injury occurs, educate your employees on your company's workers' compensation. According to HR Daily Advisor, your employees should know exactly when and how to report a legitimate injury. However, they should understand your position regarding falsified claims, and the potential trouble that could ensue if they attempt to take advantage of the system.

When a claim of workplace injury does occur, one of your jobs is to investigate the situation as thoroughly as possible. This includes finding and interviewing witnesses. If no one saw the alleged injury, there may be a reason for you to suspect fraud. If you are able to find witnesses, determine whether the different accounts of the accident are consistent with each other. Even if an accident takes place, your employee may exaggerate the extent of his or her injury in order to benefit from extended compensation. For all workplace injuries, it may be helpful to work with an assigned medical facility. That way you have an established relationship with your injured employees' doctors, and you will be more likely to know if the injuries being treated are work related. 

In an attempt to prevent future fraud, be very cautious about whom you hire. Investigate potential employees' work history, and contact references in order to determine whether they would be likely to follow your company's safety standards and code of ethics. You may also wish to install security equipment. This is not only for your benefit, but also for your employees' protection on the job. More information about workers' compensation issues is available on our web site.

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