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.
Though employers in California and other states must purchase insurance that protects employees who are injured or become ill on the job, they should not have to bear the burden of increased premiums and financial losses caused by workers who attempt to misuse the system. Workers' compensation fraud remains problematic for many business owners. Employers who suspect that a fraudulent claim has been filed within their companies will want to be aware of the legal options available to fight against illicit claims.
California employers often face legal challenges pertaining to workers' compensation. Though an employer may understand that it is only right for an injured worker to receive benefits to help pay medical bills and other related expenses, that same employer may have to battle to protect business interests when a fraudulent claim is filed. In such situations, it is typically crucial to build a strong employer defense, which is often best accomplished through sound legal counsel.
Falsified compensation claims in the workplace can greatly impede production and success in businesses, large or small. Employers often face complicated legal challenges when trying to protect their business interests and seek justice against workers' compensation fraud. In California and beyond, an experienced employment attorney would be able to help determine the best course of action to take under such circumstances.
The finances of California businesses can be adversely affected by workers' compensation claims that lead to increased insurance premiums. In some cases, workers can challenge the benefits they receive, and employers may find the need for legal assistance to handle workers' compensation defense. A company in another state is appealing a court ruling to reinstate payment to a worker who was injured in August of 1993.
Unfortunately, there are often reports of cases in which employees in California and elsewhere take advantage of the system by filing fraudulent claims. Sometimes the validity of the claims are difficult to challenge, and experienced employer defense may be required to protect the business owner from unnecessary increases in insurance premiums. A case that went all the way to the special workers' comp branch of the Supreme Court in another state demonstrates just one of the tactics of some workers filing fraudulent claims.
When it comes to workers' compensation, California company owners will likely face legal issues at some time. Not only do they have to work through the insurance-related legal requirements for businesses, but they may also have to deal will fraudulent workers' injury claims from time to time. The insurance system in another state reported that convictions were obtained for nine individuals who committed workers' compensation fraud.
The former owner of a California company that installs drywall was recently sentenced to 120 days behind bars followed by probation for three years. The sentence followed a conviction on payroll and workers' compensation fraud. He will also have to pay the defrauded insurance company more than $262,000 for underpaid premiums. Furthermore, over $160,000 of stolen wages was repaid to workers during the prosecution of the case.
Regardless of how well California employers manage their workers' compensation programs, sooner or later they will likely become involved in litigation over workers' injuries. Unanticipated claims from former employees or being named as one of many defendants in occupational injury exposure claims may require the employer to hire a professional to handle employer defense. The demands of running a profitable company can be taxing on a business owner, and having to deal with complicated workers' compensation claims may be better left to experienced professionals.
"Times are hard", especially if you are a small business person.