How Can Employers Spot & Prevent Workers Comp Fraud?

How Can Employers Spot & Prevent Workers Comp FraudWorkers compensation is a requirement for both California and Nevada employers, regardless of the number of employees your business has. Although this policy is intended to protect your business and your employees, fraud is still an unfortunate component of workers compensation. In order to safeguard your property, assets, and employees, install a Lake Tahoe Workers Compensation policy. Let us take a closer look at how to identify and prevent such incidences.

Tony Yao, a former California Highway Patrol officer, was charged with falsifying a workers compensation claim in 2011. Although Yao claimed to have hurt his back while pulling a chain to move a target, surveillance footage from the same time frame shows Yao carrying shopping bags, disassembling bikes, walking upright and doing other activities that he claimed were difficult to accomplish in his poor physical state. However, contradictory evidence shows an image of Yao at the doctor’s getting treatment for his alleged back injury. According to The Sacramento Bee, the jury ruled the case was fraudulent earlier this year. This verdict caused Yao to be fired from CHP and fined over $80,000 in restitution. Further, depending on if he is admitted to a work release program, Yao faces jail time, as well.

In order to prevent incidents like this from occurring, here are some helpful tips to follow:

  • Consider drug testing your employees
  • Have a plan in place if someone is injured
  • Pay attention to workplace chatter after incident
  • Take your time during the hiring process
  • Use a video monitoring system

If you are suspicious about potential fraudulent activity, consider if the employee(s) in question have any of the following characteristics:

  • Erratic employment record
  • Child support lien
  • Criminal record
  • Inconsistent details of incident or symptoms
  • Exaggerated or immediate involvement with lawyers

Evaluating the scenario, speaking with employees, gathering testimonials, and reviewing video surveillance can help minimize the occurrence of fraudulent workers compensation claims. At Cal-Nevada Insurance Agency, we understand the potential consequences of workers compensation claims. We strive to protect your business with comprehensive workers compensation to protect your business and treat your employee-either permanent or contracted- so that they are able to return to work as soon as possible. To learn more, contact one of our knowledgeable specialists today at (866) 670-5948.

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