Warning Signs
of Workers Compensation Fraud
of Workers Compensation Fraud
- There is no witnesses of the accident or it happened outside normal working hours.
- It is difficult or impossible to reach the employee.
- The accident wasn’t reported until days after it happened.
- The employee changes his or her story about the accident.
- The employee shows no interest in returning to work even when accommodations to the injury are made.
- The employee frequently changes physicians.
- The employee has a past history of workers compensation claims.
Preparation Prior to the Layoff
- Be familiar with state unemployment insurance laws, including the levels and durations of benefits.
- Investigate state programs available to employees that may offset workers compensation costs.
- Meet with your insurance broker to review pending claims and identify those that might become problems.
- Backup employee records and store them in secure locations. Claim records should be updated with the latest available information.
- Create a video record of conditions in the building prior to the layoff to easily demonstrate to a court what the work environment was like.
- Use exit interviews to document employees’ physical condition at the time of termination.
When layoffs occur, the company should handle them as sensitively as possible. Losing a job is a traumatic experience for anyone. Reduce the chances that a worker will seek retribution by helping affected employees:
- Offer resume preparation or outplacement services.
- Offer employee assistance programs for those who need emotional support.
- If the company can afford the expense, offer severance payments to the employees in return for their written agreement to forego any future claims against the company.
- Make sure contingency plans are in place should any of the employees become violent at the time of the layoff or later
- Ask the broker and the insurance company to coordinate claims handling through one office and one senior claims adjuster.
- Request that the insurer assign the defense of all cases to one law firm.
- Relevant records should be made easily accessible to the attorneys and any medical specialists the firm may hire. Relevant records include videos, employee files, job descriptions, and exit questionnaires.
- Identify key personnel who may be available to testify regarding job requirements and conditions. Have a list of their names and contact information available for the attorneys.