Workers’ Compensation fraud is a major problem. Fraud can be committed
by both employees and employers. For instance, employers may underreport
the number of employees in order to receive lower Workers’ Comp
insurance premiums. There are also employees who exaggerate their injuries
so they can have more paid time off from work. Fraud can also be committed
by health care providers who bill Workers’ Comp insurance providers
for services that were not actually performed. Unfortunately, this fraud
costs billions of dollars each year. There are serious consequences for
Workers’ Comp fraud, which employees should definitely be aware.
How is Workers’ Compensation fraud defined?
When an employee willfully makes a false statement, or conceals information,
in an effort to obtain Workers’ Comp benefits, that is considered
Workers’ Comp fraud, and it is illegal. For example, if an employee
is caught malingering or exaggerating symptoms, claiming a job-related
injury that never occurred or an injury that was not actually job-related,
that is considered fraud.
Workers’ Comp fraud investigations in Alabama
The Workers’ Compensation Division of the Alabama Department of Industrial
Relations is accountable for guaranteeing proper payment of benefits to
employees injured on the job, and for encouraging workplace safety. The
Workers’ Compensation Division fraud unit investigates and pursues
anyone who attempts to abuse the Workers’ Compensation laws.
Recognizing the signs of Workers’ Compensation fraud
The effects of Workers’ Comp fraud are far-reaching. Not only does
fraud affect the insurance companies, but also the employer’s whose
rates will often increase. Those cost increases will most likely be passed
on to the employees. So, ultimately, everyone is affected.
If you have questions regarding a Workers’ Compensation matter,
contact us or by calling the Law Office of Cody R. Wix, LLC at (205) 381-4787.