What Are Fraudulent Workers’ Compensation Claims?

 Claims for workers’ compensation that are filed with the goal to deceive or defraud the workers’ compensation system are fraudulent. These claims may be filed by non-injured personnel or businesses attempting to avoid paying benefits. Every fraudulent workers’ compensation claims cost businesses and insurers millions of dollars. This expense is ultimately passed on to companies and employees in the form of increased premiums.

The Consequences of Filing Fraudulent Workers’ Compensation Claims as An Employee

The employee who files a fake workers’ compensation claim may suffer severe consequences. If you are accused of fraud, an investigation may be conducted. This research can be costly and time-consuming, as well as potentially damaging to your reputation. If you are found guilty of fraud, you may be obliged to repay the benefits you got in addition to being fined or sent to prison.

In addition to legal repercussions, submitting a fake workers’ compensation claim can harm your career. Your employer may perceive you as untrustworthy, and it may be difficult for you to obtain alternative employment.

The Consequences of Filing Fraudulent Workers’ Compensation Claims as An Employer

Claiming workers’ compensation benefits fraudulently can have severe ramifications for the business. If you are detected filing a fake claim, you may be penalized or incarcerated. In addition, your firm may be obliged to repay the provided benefits, and your insurance premiums may increase.

Also, fraudulent workers’ compensation claims can harm your company’s reputation. Workers may regard you as untrustworthy, making it difficult to recruit new workers. In addition, the Workers’ Compensation Board may investigate, which can be costly and time-consuming.

Examples Of Fraudulent Workers’ Compensation Claims

Workers’ compensation claim fraud can be committed in several ways.

  1. When an employee exaggerates their ailments to receive benefits, it is a typical kind of fraud. When an employee files a claim for an injury they did not sustain on the job, this is another sort of fraud.
  2. Employers may also commit workers’ compensation claim fraud by intentionally underreporting their payroll to avoid paying higher premiums.
  3. Finally, some businesses will attempt to categorize their workers as independent contractors to avoid paying workers’ compensation claims.

What To Do If You Have Been Accused of Workers’ Compensation Fraud?

It is imperative that you seek legal representation as soon as possible if you have been accused of defrauding the workers’ compensation system. An expert attorney can help you understand the allegations that have been brought against you and assist you in developing a solid Défense strategy.

Conclusion

Claiming workers’ compensation benefits fraudulently is a serious offense that can result in severe penalties. These penalties include monetary fines, restitution payments, and jail time. If you have been accused of filing a fraudulent workers’ compensation claim, you should contact an experienced attorney who can guide you through the legal procedure and defend your legal rights. Pistiolas Law Firm is available to assist. To book a consultation, please call us at (844) 414-1768.

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