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Reducing & Preventing Work Compensation Fraud Reducing & Preventing Work Compensation Fraud

Reducing & Preventing Work Compensation Fraud

Workers' compensation fraud costs employers billions of dollars each year. Claimant fraud can occur in a variety of ways including faking an injury, alleging a non-work related injury occurred on the job, exaggerating the degree of injury and/or length of disability and collecting disability benefits while secretly continuing to work or engage in activity inconsistent with medical restrictions. There are many steps employers can take to help reduce and prevent claimant fraud.
  • Follow Sound Hiring Practices: Conduct background checks for new hires and be sure to check references.
  • Promote a Fraud-Free Workplace: Educate your employees on the workers' compensation system and your zero tolerance stance on fraud. Let your employees know how they can report fraud anonymously. To help prevent any off-the-job accidents from being filed as workers' compensation claims, explain to employees how short-term disability works if you offer that type of benefit. 
  • Investigate All Accidents: Review any video surveillance, conduct interviews of witnesses and preserve any workplace evidence as soon as possible following an accident. 
  • Perform Exit Interviews: To help discourage claims when an employee is terminated, exit interviews should include a signed statement from the employee as to whether or not he or she sustained any unreported injury at work.
  • Have a Safety Program: Be sure to make workplace safety a priority. Hold regular meetings and conduct periodic safety checks. Fix any hazards immediately and document all inspections and repairs. Such data could later be used as evidence. 
  • Have a Return to Work Program: Having a transitional duty program available for employees who are injured can help make committing fraud less tempting.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.
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