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What is workers’ compensation fraud?

On Behalf of | Feb 26, 2020 | Firm News |

Collecting workers’ compensation is a right you have if you suffer an injury while on the job. People who make false claims or employers who do not follow workers’ compensation laws are infringing on your rights and making it more difficult for you to collect your benefits. They are a drag on the system and lead to more intensive reviews that could mean you do not get the benefits you rightfully should or delay your benefits due to extensive reviews. Knowing what fraud is and reporting it when you see it is beneficial to everyone.

The New Jersey Department of Labor and Workforce Development explains that workers’ compensation fraud can happen on both sides of the process.  An employer may not make proper reports, which could delay your benefits or prevent you from getting them. Employers may also not have workers’ compensation insurance when required to by law. These are all fraud and illegal.

Other workers may make false reports of injuries or misrepresent an injury to claim benefits. This could lead to issues down the road when other people, including you, make a true report but due to past fraud, the insurer takes extra steps to verify the injury. This could delay your benefits or even make it difficult to get some benefits.

In any case, fraud is when someone is not following the rules and procedures laid down by state law for workers’ compensation. It is a crime to commit workers’ compensation fraud. If you know of a situation of fraud, you should report it as soon as possible to the Office of Insurance Fraud Prosecutor.