Clearing Up Who Can Commit Workers’ Compensation Fraud

When people hear the phrase workers’ compensation fraud, the first thing that comes to mind is usually an investigator the following someone around with a camera because they suspect they have lied about an injury they sustained at work. Yes, this happens and it also makes for some good TV show plots, but it is certainly not the only way that this type of fraud is committed.

You can be certain that the state of California takes workers’ compensation fraud seriously. Estimates say that it costs the state $1 to $3 billion a year. If they suspect fraud, they will use their investigative power and work diligently to prosecute those responsibly. That is why it is important for businesses accused of fraud to secure an attorney if they are facing charges. If you need a Los Angeles workers compensation fraud attorney, you can count on Sacks Law Group, APC to be by your side.

The Faces Of Fraud

• Employer Fraud: As we mentioned above, employees will certainly sometimes attempt to collect money they should not be collecting from the workers’ compensation system. While the majority of claims are indeed made after a legitimate injury, there are times when an employee will lie. They may claim an injury that never happened or say they are still injured long after they have healed.
• Vendor Fraud: There have been many cases of those responsible for caring for injured workers using the system to their advantage. This can include doctors, surgeons, chiropractors, hospital administrators, and more. Often, they will make agreements to refer patients to one another and then offer “kickback” payments if the patient ends up getting treatment. This could even encourage healthcare providers to claim a patient needs treatment when they really do not.
• Employer Fraud: This can occur when an employer misleads the state about how many employees they have, underreports their payroll, or misclassifies employees for the purpose of getting lower workers compensation premiums. It is a cost-saving attempt that is illegal.

All three types of fraud we just discussed end up costing everyone money. Employers will end up paying higher premiums and pass those costs onto consumers and lower wages to employees.

What You Can Do Now

Everyone can agree that lower premiums would be great, but the way to achieve them is not through fraud. The state is going to investigate anyone suspected of fraud and bring charges that can bring both jail time and massive monetary penalties. If you are a business owner and have been accused of workers’ compensation fraud in Los Angeles, the time to act is not.

At Sacks Law Group, APC, our attorneys have decades of experience in this area of law and will work tirelessly on your behalf to make sure the best possible outcome is reached. Let us work out a strategy for success so you can get back to living your life. You can contact us for a consultation by clicking here or calling 310-216-7778.