Legallbug's Blog

Workers compensation fraud has become one of the most popular types of fraud in the United States and it is approximated that it costs Americans $5 billion dollars a year. Employees as well as employers can commit workers compensation fraud by giving a false account of the facts to gain personal benefits in which they are not entitled to or by refusing to accept a claim that is legit.

Employees can commit workers compensation fraud by filing a claim for an injury that occurred outside of their place of employment or by exaggerating their injuries to collect more benefits then they are entitled to. Employers can commit workers compensation fraud by denying a claim of an employee, by retaining information to deter employees from filing a claim, and by obtaining compensation on behalf of an employee.

Workers compensation fraud hurts everyone because it increases costs for employers, consumers, and insurers. Although many believe this type of fraud to be victimless and harmless, it costs the insurance industry millions of dollars a year. As insurance companies payout more and more money for this fraud, employer’s workers compensation insurance costs increase and the overall economy of the state is impacted because consumer products increase in price. This fraud has resulted in many private companies filing for bankruptcy and thousands of employee layoffs.

Workers compensation fraud occurs more commonly among employees and employers should be aware of certain circumstances that can detect fraudulent claims. The following list is a way to detect if an employee is being dishonest regarding their injury claim:

• Claim is not reported immediately
• Details are fuzzy and vague
• There are no witnesses
• Discrepancies in details between employee and co-workers
• Dissatisfied employees
• Personal financial hardship

If you believe an employee or an employer is committing workers’ compensation fraud contact an attorney without delay to ensure that your personal rights or company’s rights are protected.