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.

Preventing Workers' Compensation Fraud During The Hiring Process

By: articlescharmen

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