Preventing Workers’ Compensation Fraud During The Hiring Process
Workers’ compensation fraud is estimated to occur in one out of four claims, resulting in billions lost in premiums, taxes, and expenses every year. There are people who are willing to fake injuries and claims in order to illegally collect compensation. One of the most effective ways for companies to protect themselves is during the hiring process with a workers’ comp background check to filter out questionable applicants.
The workers’ compensation program works very well to limit a company’s liability and to create a safety net for workers. However, when scams and fraud undermine the system, everyone loses in the end to rising premiums and expenses.
Spotting Scams Beforehand – Workers’ Comp Background Check
Records pertaining to all compensation cases are available through the Americans with Disabilities Act; the act provides a history of an individual’s work-related injuries that includes dates of accidents, nature of injuries, and if the claim was upheld or denied by the state authority. By obtaining a workers’ comp background check, employers have a chance to spot questionable applicants before they enter a company.
Don’t be misled into thinking that every person who has filed a claim is looking to scam a company and get paid through a fraudulent case. However, seeing a long history of claims, especially ones that have been denied or investigated, should throw up a massive red flag for human resources personnel to spot.
Always be mindful of each person’s unique situation. A string of accidents at a previous job would lead to a record of claims and they would all be legitimate. The best way to handle this type of information is to bring it up during an interview to hear the other side of the story. Hiring personnel can also dig deeper to obtain more information before they make a decision.
Searching Deeper With A Criminal Record Check
A criminal record check is an excellent tool to combine with an individual’s compensation history. If a clear pattern of fraud and illegal activity becomes evident, than the person applying for the position might very well be looking to perpetuate fraud. It is a safe assumption that a worker with compensation claims and a clear criminal record check is most likely a safe bet. The red flag here would be a corresponding criminal record combined with a dubious compensation history.
This type of candidate might not be actively looking to defraud the system. However, poor records can be indicative of a poor work attitude. An unsafe or uncaring employee is a liability to a company and all of their fellow workers. A person willing to live off of this system rather than being a hard worker would probably not add significant value to a business.
During the hiring process, workers’ comp background checks and criminal record checks are effective tools to filter out undesired applicants. Hiring personnel armed with this information are able to make informed hiring decisions for the benefit of their companies and colleagues.
Chris Harmen is an author for AccuScreen, the industry leader in workers’ comp background checks since 1994. AccuSCreen also provides in depth criminal record checks.
Why A Business Must Buy Workers Comp Insurance
Every employee of every company has the right to feel safe while on the job and be covered by insurance in case of an injury while at work. This type of insurance is called workers compensation. All employers should carry workers compensation insurance and some states require that they carry it for their employees.
The rules and regulations governing workers compensation vary from state to state. Most states require that employers carry the coverage but the amounts of coverage and the type of coverage can vary widely depending on state requirements. This makes it imperative that if you are starting a new job you need to question your new employer about their coverage and the limits of their coverage. If they are not satisfactory, you may want to purchase your own insurance that enhances your employers’ coverage.
The critical difference between workers compensation and medical insurance is that workers compensation only covers injuries that occur at work. Medical insurance covers injuries and illnesses no matter where they occur. Another difference is that workers compensation is usually free to the employee while they have to pay for medical insurance.
Employers generally offer workers compensation in order to make their employees feel safe while on the job and to keep them from being sued by an employee in case of a work related injury. If a business does not offer workers compensation insurance and a major injury or death occur to an employee while at work the financial loss to the business due to a lawsuit could be devastating.
Workers compensation will cover all of the cost incurred by the employee if they are injured while on the job. It should cover all medical cost, the cost of lost time at work, the cost of transportation to and from medical care and more. If an employee is killed on the job, workers compensation will make payment to the beneficiary of the employee. The money the beneficiary will receive covers the cost of funeral expenses, lost wages and other considerations. This type of insurance can also cover automobile accidents if you where on a business related trip at the time of the accident.
As stated, workers compensation coverage can vary from one business to the next and from one state to another, Thus, it is the responsibility of the employee to get all of the information they need from their employer.
Stewart Baker writes for PinnacleUnderwriters.com. Looking the best deals when you buy workers comp insurance? Pinnacle specializes and offers competitive pricing for your business. They also offer workers comp agents and workers comp brokers the ability to offer their services to their clients.
Finding a Workers Comp Agent
If you are going to start a business that is going to require you to hire employees then you are going to be required to carry workers compensation insurance. Workers compensation is insurance that provides coverage for an employees’ lost wages and medical bills in the event that they get hurt on the job. In return for this compensation, the employee waives the right to sue the employer for negligence.
Knowing that as an employer you have to carry worker’s compensation insurance is one thing but finding a competent worker’s comp insurance agent is another story. This article will cover some steps to take to help you find the proper insurance agent.
The first step to take is to go to the workers compensation website where you will find information on state requirements and a list of agents. Another avenue that you can take is to talk to other local business owners and get references of what insurance agent they use. You can ask questions and determine if they are satisfied with their agent or if they have issues with them. You can take agents names off the list on the website and make cold calls to the agents.
You can ask them about the services they offer and what the cost is going to be and compare the quotes and information you receive. Be sure to ask the agents if they offer discounts for multiple policies. This is a great way to save money on services that you must have.
Another option that you have is to call or visit your states’ department of insurance for information on workers comp insurance requirements and agents. The advantage of this is that they will have a list of agents that are already licensed to sell workers comp insurance in your state. This site will also rate the agents and let you know what complaints if any have been filed against them.
Being a business owner with employees opens up a completely new arena of responsibilities. You want to give your employees the best coverage that you can afford so that they are protected. Employees who are well cared for make better employees. They will work harder and produce more for a company they know is taking care of their interest. Protecting an employee’s health and income will put them at ease and take a lot of stress out of their life.
Stewart Baker writes for PinnacleOutsourcing.com. As a leading workers comp agent for construction companies, they make sure you are well-protected. They offer excellent coverage if you want workers comp insurance. Be sure to buy workers comp insurance from the trusted source for years.
Ice Cream Parties Reward Employees
Employee recognition seems to be a rare occurrence in most organizations. Employees complain about regularly that they are unappreciated. Managers ask, “He’s just doing his job. Why does that validate recognition?” And, life at work can be very busy. These factors create work places that fail to provide employees with the recognition they so desperately crave.
Managers who understand the power of recognition, prioritize it. They know that employee recognition does not just serve as a nice thing to do for the worker bees of their organization. It is a communication tool that reinforces and rewards the most important output that individuals create for the business.
When you recognize people in an effective, you reinforce the actions and behaviors you most want people to repeat. An effective employee recognition method is simple, immediate, and powerfully reinforcing. Employees who feel cared about and appreciated produce more and better work.
So, how do you put in place an employee recognition system that is simple, immediate, and powerfully reinforcing while still managing your bank account? One simple, fun and creative way to bring people together and show them how much you appreciate their hard work is an ice cream party.
Ice cream is inherently light hearted and fun. For your employees that are stuck behind a desk all day and, many times, do not know the end to the means of what they do during that day, a celebration filled with flavors, toppings and good people can be a large motivator and something to look forward to.
If you had the thought: “No, an ice cream party is messy… and how do you choose the flavors and toppings? What about all the silverware, bowls and napkins? Who will serve the ice cream?”
There are companies out there that will take care of all of this for you. Some will provide a fully catered event where you can just be one of the employees. You certainly deserve the recognition yourself! The event will be set up and torn down, all the supplies provided and even servers dressed in cow costumes if you would like. Or, if you’re on a tighter budget or don’t mind having people in your organization serve the ice cream, it can be delivered (by a delivery person dressed in a cow costume for added nostalgia).
No matter what approach you take, you can be sure that an ice cream party will liven the spirits of your employees. At the very least, you can experience continued hard work and above par outputs if not better.
Stephen Kelly is crazy about Ice Cream and has organized a number of Cambridge Ice Cream parties. To learn more or schedule a party, visit http://www.lizzysicecream.com
Workers’ Compensation Benefits in Today’s Economy
Today’s economy is volatile, to put it mildly. Even established and formerly-profitable businesses are finding themselves in financial hardship. Many companies are being forced into bankruptcy.
If you have been injured on the job, you already have enough to worry about. Unfortunately, if you were injured while working for one of these struggling companies, you may now be concerned about the effect that your company’s financial challenges will have on your workers’ compensation benefits.
Does the Company’s Bankruptcy Affect Work Comp Benefits?
One common concern among workers is that a bankruptcy filing may put an end to workers’ compensation benefits. For many injured workers, workers’ comp provides money desperately needed to cover medical expenses and monthly bills until the employee can return to work.
Generally speaking, a bankruptcy filing should not affect your receipt of work comp payments. The payments you receive are actually coming from your employer’s workers’ compensation insurance provider, not the company itself. Provided your employer was current on the insurance premiums at the time of the bankruptcy filing, your benefit amounts and the payment schedule will not change; the company’s financial strains are irrelevant. Even if your employer had let the worker’s compensation insurance lapse, you may have other sources of benefits, and your employer will likely face hefty civil fines and criminal sanctions.
If I am Laid Off, Will My Workers’ Compensation Payments Stop?
Another unfortunate side effect of the recent economic downturn is that companies are laying off workers in record numbers in an attempt to cut costs. If you are out of work due to an on-the-job injury at the time you are laid off though, your benefits should not change.
Likewise, if you had returned to work but are under medically-recommended physical restrictions, your benefits should not be affected. If the payments have changed for some reason following a layoff, you may need to petition the court for reinstatement of lost wage benefits.
Even if you are currently working with no medical restrictions following an injury and are laid off, you may still be eligible for workers’ compensation benefits. If you are not on restrictions but are receiving benefits at the time of layoffs, the workers’ compensation insurance carrier must continue to pay reasonable and necessary medical expenses related to your work injury.
If you are placed on restrictions that would prevent you from returning to your regular job, even after a layoff, you may be able to file for lost wage benefits. For example, if you have surgery for a work-related injury after you are laid off, you will likely be unable to work as you recover. Accordingly, you can file a reinstatement petition to obtain benefits during this time.
If you have been injured on the job, it is vital that you inform your employer to document the incident, even if you think the injury is not serious. If left untreated, even seemingly minor injuries may result in permanent disability. Reporting an injury is particularly important if you have reason to suspect that you may be laid off. Should you file an injury report after a layoff, the claim will likely be rejected; it could appear that you are only seeking benefits in retaliation.
Any work-related injury can be stressful. The added strain of wondering if your employer’s bankruptcy filing or being laid off will affect on your workers’ compensation benefits can make your recovery even harder. Fortunately, workers’ compensation laws incorporate strong protections for injured workers, even when company’s face difficult financial times.
These are complicated issues, and it important to ensure that you are taking the proper steps to protect your rights and interests. Speak with a workers’ compensation attorney to discuss your personal situation and ensure that your interests are protected.
Reference: Krasno Krasno & Onwudinjo
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