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Fraud in workers' compensation claims is costly to all

When a person takes a full-time job, there are certain benefits that go along with it. One benefit that most employers are required to provide is workers' compensation insurance. Workers' compensation in California provides benefits to the employee in the event of an injury that occurs on the job.

In a recent case in California, a company has come under investigation for fraud in connection with workers' compensation benefits. The company is accused of under reporting the number of employees in order to reduce the amount of their premiums. There are also allegations against the company for dissuading employees from reporting injuries they received while working. Information in the report indicated that a complex scheme was in place as a result of increased reports of injuries, which, in turn, caused an increase in premiums.

This case poses potential harm to the people not receiving the benefits they are entitled to if they are injured. It also has the potential to cause harm to other businesses in the state in the form of increased premiums caused by the fraud. Honesty in business works to everyone's benefit.

If an employee in California suffers an injury at work, he or she must immediately report it through the proper channels. If the employee is then denied access to his or her workers' compensation benefits, he or she may want to obtain the advice of an experienced workers' compensation attorney. A knowledgeable workers' compensation attorney would be able to intercede on the employee's behalf to help resolve the situation.

Source: insurancejournal.com, "California Security Company Busted for $3.2M Workers' Comp Premium Fraud", May 11, 2018

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