Adverse Effects of Workers’ Compensation Fraud
Workers’ Compensation fraud hurts both businesses and its employees. Fraud drives up Workers’ Compensation insurance costs and affects every employer across every industry. When Workers’ Compensation premiums rise, employers may be forced to cut back on employee benefits such as raises, health insurance, and even jobs. The Illinois Workers’ Compensation Fraud Poster is a proactive tool you can use to beat the high cost of fraud in your workplace.
The Illinois Workers’ Compensation Fraud Poster is designed to help your employees become aware of Workers’ Compensation fraud, the consequences for fraudulently making or handling claims, and how to report Workers’ Compensation fraud. Informing individuals of the prohibited conduct and consequences can help deter fraud and encourage fraud reporting.
Illinois Workers’ Compensation Fraud Prevention
The Illinois Workers’ Compensation Act prohibits making false or fraudulent statements or representations for the purpose of obtaining, denying, or preventing an injured worker from claiming benefits, providing false information about required workers’ compensation insurance, false statements made in fraud investigations, and assisting, abetting, soliciting, or conspiring with a person or entity to commit an unlawful act. The consequences for committing Workers’ Compensation fraud include terms of imprisonment and significant fines. Individuals may be fined up to $25,000 for each violation. Corporations may be forced to pay up to $50,000 for each violation. Terms of imprisonment range from one to 15 years, depending on the severity of the offense.
Fraud may be reported to the Illinois Department of Insurance’s Workers’ Compensation Fraud Unit. The Hotline number and website are included on the poster.