Workers' compensation fraud is a crime in California and can have serious consequences for an employer who is the target of the fraud. A business owner may suffer unnecessary financial losses if a fraudulent claim goes unnoticed. One vigilant business avoided losses when it became suspicious of one man's claims. He has since been charged with workers' compensation fraud.
Workers' compensation fraud can cause damage to a business and place the owner in a difficult position, both financially and professionally. Some people may question what led their current or former employee to abuse available benefits for personal gain. The decision for an employee to commit workers' compensation fraud in California may stem from being disgruntled at the company or from someone trying to take advantage of a particular situation.
When an employee commits workers' compensation fraud, it can place a business in a financially difficult situation. A company may lose money over time through the potentially rising cost of insurance premiums that reflect excessive amounts of benefits paid out. A California business owner may choose to take legal action if he or she suspects that an employee took advantage through workers' compensation fraud.
When a large group of employees is accidentally exposed to a dangerous chemical, an employer defense may be established to help prevent detrimental financial damage. A total of three California schools were recently closed after asbestos fibers and dust were said to have been found inside some of the buildings. The decision came after a heated discussion and vote among the school board that addressed the potential closing of 11 schools that had been under construction during the summer months. The school district may consider an employer defense in the event that the faculty and other workers fall ill.
Working as a police officer or firefighter in Los Angeles can place a person at a higher risk for work related injury. The generous benefits provided when a person is placed on leave may contribute to an overwhelming number of potential workers' compensation fraud that may exist among public servants. An employer that suspects workers' compensation fraud may question the validity of an injury and begin an investigation.
An employer defense may have the potential to ease consequences in the event an employer is accused of dishonest practices. A recent report revealed the high number of businesses in California and across the nation that have intentionally labeled employees as independent contractors to intentionally avoid higher costs. Lawmakers in Washington have announced their plan to expose companies that mislabel the classification of their employees in an attempt to financially benefit. A business owner may prepare an employer defense if they suspect they may be investigated.
Workers' compensation defense may be necessary for some California companies that foresee a future risk of serious health related problems among multiple employees. The medical costs of multiple workers that suffer health damage from chemical exposure may be extensive for an employer, making a strong workers' compensation defense valuable. The National Institute for Occupational Health and Safety recently completed a study that found high levels of Benzene exposure in specific oil and gas industry positions.
A business owner may find themselves in a difficult situation if they are accused of workers' compensation fraud by the government or an insurance company. A California chiropractor was recently prosecuted for his potential involvement in one of the state's largest ever workers' compensation fraud cases to date. The man is accused of being the ringleader of a group responsible for funneling $50 million dollars worth of insurance benefits from insurance providers and the state.
Experts agree that the rate of workers' compensation fraud continues to increase in California. The rise is seen in both contended claims and the amount of injuries that are filed. An employer that suspects an accident or injury has been claimed in an attempt to commit workers' compensation fraud may research the best possible method for investigating the situation.
When an employer is taken advantage of through workers' compensation fraud, both the company and its insurer can suffer financial damages. Some professionals may choose to begin the process to reveal the theft and attempt to regain the monetary loss. A woman formerly employed at a local California bank has been accused of workers' compensation fraud after being involved in the robbery that purportedly caused the false mental injury.