Does Your Company Have a Workers’ Compensation Fraud Reporting Policy?

Does Your Company Have a Workers’ Compensation Fraud Reporting Policy?
Does Your Company Have a Workers Comp Fraud Reporting Policy?

Companies in Connecticut waste thousands, perhaps millions, on false workers’ compensation claims every year. Employees think that, if they’re slick enough, can get away with filing a false claim. And, for larger employers, the costs of these claims can be absorbed. For smaller businesses, these costs can have a significant impact on their bottom line. This is why it’s important that businesses have policies in place to not only prevent, but also detect workers’ comp fraud. They need to know what to look out for. They also need to know what to do after someone’s gone out on workers’ comp. This way, they can catch people who are collecting fraudulent benefits. They can also make sure they discourage other employees from engaging in the same type of behavior.

If you don’t already have these policies and procedures in place, you could be at risk. You should meet with an experienced business attorney in Connecticut. They can review any procedures you have in place. They can also let you know what your rights are as an employer.

What are the Different Types of Workers’ Comp Fraud in Connecticut?

There are several different types of workers’ comp fraud. They all center around the same thing. An employee claims they were injured at work, even though their injuries had nothing to do with their jobs. In some situations, they weren’t even injured at all.

Here are some of the types of fraud to look out for:

  • False claims – These include claims for injuries that never happened. Employees may position themselves to make it look like they had fallen. When in reality, nothing happened to them at all.
  • Exaggerated Claims – These tend to be the most common types of cases. People injure themselves but, in order to receive extended benefits, pretend that they’re worse off than they really are.
  • Accidents that took place outside of work – These are cases where someone gets hurt over the weekend and then blame it on their jobs. They know that they probably won’t be able to work, so they may as well try to get workers’ comp to pay for it.
  • Work and collect benefits at the same time – These are employees who collect workers benefits through your company and work off the books somewhere else. They are essentially double dipping. This is against the rules.

You need to make sure your Human Resources department is trained to be able to spot these situations. Otherwise, your employees will notice that their coworkers are collecting benefits they don’t deserve. This can lead to a domino effect. It can also cause otherwise good employees to become disgruntled.

Business Lawyers in Connecticut Can Show You the Signs to Look Out For

When you meet with your business lawyers in Connecticut, they can go over some of the red flags. You need to be mindful of these indicators in order to spot false workers’ comp claims.

Some of the things you need to look out for to spot false claims include the following:

  • Employees who have a history of changing jobs, being laid off, etc.
  • Anyone who has a history of filing workers’ compensation claims
  • Employees who can’t be reached once they go out on workers’ comp
  • Stories that don’t make sense – details change, dates and times don’t match up
  • Claims that don’t involve any witnesses
  • Employees who report an injury late on Friday or early on Monday
  • Workers who refuse to report for light or modified duty
  • Situations where the employee is found to be fine when they don’t realize they’re being watched

Of course, there are lots of times when fraudulent workers’ compensation claims seem completely legitimate. This is especially true if you don’t have any way to prove otherwise. This is why it’s important to have a procedure in place for employees to report known fraud.

A lot of companies are afraid that, if they have a reporting policy, people will take advantage of it. This is rare. Employees would rather have a mechanism to report known fraud than to see it continue around them.

Speak with an Experienced Business Lawyer in Connecticut

If your company is experiencing workers’ comp fraud claims, you need help. No matter how hard you try, if you don’t have a prevention plan, you will continue to lose money.

Your business lawyer in Connecticut can review your current policies and procedures. They can also give you advice on what to do if you believe an employee has filed a fraudulent claim. Call Aeton Law Partners today and schedule an initial consultation.

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