What to Do if You Suspect an Employee is Faking Injury

From time to time you may face situations in which you suspect an employee is faking an injury in order to obtain NJ workers compensation insurance payments fraudulently. This is a serious offense should it turn out to be true. If you do suspect fraud is taking place, you may want to notify your insurance agency, and put procedures in place to deal with the situation. Once your agent and insurer are aware of the issue, a medical exam might be arranged in an effort to verify the injury. Other steps might also be taken to establish if the employee’s stated physical restrictions appear to be genuine.

Should you find proof that an employee has attempted to fraudulently collect workers compensation payments, you may want to invoke disciplinary action up to termination of employment and possible criminal prosecution. Implementing a zero tolerance policy where workers’ comp fraud is concerned may discourage employees from engaging in such dishonest behavior.

When you believe you have proof that fraud has been committed, it may be wise to notify your agent. Remember never to make accusations without evidence – otherwise it may be you that ends up on the wrong side of the law. Instead, allow your NJ workers compensation insurance company to guide you through the situation.*