New California Workers’ Compensation Fraud Poster

California employers have the nation’s highest workers’ compensation burden with an average cost of 3.24 percent of payroll for workers’ compensation insurance, 76 percent above the national average. One factor in those costs is what officials say is an enormous amount of fraud. In California, it is estimated that workers’ compensation fraud costs between $1 billion to $3 billion per year. These costs are borne by workers, employers, insurers, taxpayers and the general public. Fighting fraud at ground level – in their own workplaces – is where employers and employees can have enormous impact.

Forms of Fraud

Fraud within the workers’ compensation system comes in many forms. Workers’ compensation insurance fraud ranges from simple cases to highly sophisticated operations. Its perpetrators range from rank-and-file employees to highly positioned politicians. In a simple case, an employee may exaggerate or even fabricate injuries to obtain benefits. At the other end of the spectrum are doctors, lawyers and ancillary providers that conspire with others to defraud the system by creating false or exaggerated claims, over treating, over billing, and over prescribing medications. Employers get involved by underreporting payroll to obtain lower insurance premiums or failing to obtain insurance altogether.

Employee Education Deters Fraud

Prevention of workers’ compensation fraud begins in the workplace. Businesses are in the best position to implement early intervention strategies. Employee education is one of the most effective fraud deterrent tools. Studies show that employees who have been educated on the purpose and program benefits of the workers’ compensation system are less likely to commit fraud.

Employers should have a strong anti-fraud policy that informs employees that workers’ compensation fraud will not be tolerated and will be prosecuted. This message will be welcomed by all honest employees. It demonstrates an employer’s commitment to fighting workers’ compensation abuse. It encourages employees to report suspected fraud. It enables injured workers to protect themselves from unscrupulous providers.

California Workers’ Compensation Fraud Poster

Posting an anti-fraud notice in the workplace is a simple but effective tool against workers’ compensation fraud. Compliance Poster Company’s California Workers’ Compensation Fraud Poster informs employees that workers’ compensation fraud is a crime punishable by significant fines and imprisonment. The Poster lets employees know that it is illegal for anyone to make false statements, submit false documents or conspire with another to obtain or deny insurance benefits. It also provides the California Department of Insurance’s Fraud Hotline number so employees know how to report suspected fraud.

Use this Poster to start a dialog with your employees. Fighting workers’ compensation fraud is everyone’s responsibility.

Leave a Reply

Your email address will not be published. Required fields are marked *