Worker’s Compensation Fraud in Alabama

Worker’s compensation fraud can be committed by employers and insurance carriers. The state of Alabama worker’s compensation system is in place to protect employers in the event of a work-related injury or illness to an employee. Employers generally have immunity from suit, however, if their conduct is bad enough, they can be held liable for fraud and outrage.  It’s a common misconception that fraud only takes place on the employee side of the equation. Employers and their insurance carriers take actions all the time that aren’t acceptable in the eyes of the law.

What Is Worker’s Compensation Fraud?

Worker’s compensation fraud by an employer or carrier occurs when the employer or carrier willfully conceals information or makes false statements in order to save money or decline benefits. The tort of outrage by employer or carrier occurs when that party willfully mishandles the worker’s compensation claim. Some common types of worker’s compensation fraud and outrage that employers might commit include:

• Denying injuries and symptoms where they really exist.
• Falsifying injury reports
• Sending the employee to Dr.s who do the employer’s or insurance company’s bidding.
• Refusing to provide benefits or medical where the employee is entitled to it.

Other examples of worker’s compensation fraud committed by employers might be an employer who falsifies payroll records so that they either don’t have to carry worker’s compensation insurance or to lower their premiums. An employer may also refuse to report an injury or illness on behalf of an employee, which is against the law.

Some Recent Cases of Worker’s Compensation Fraud

When it comes to massive worker’s compensation fraud cases, it’s a common misconception that the perpetrators are all injured workers. In 2015, 9 out 10 of the largest fraud cases in the country were non-employee cases that totaled over $800,000 in losses.

Six of those cases were out of California where surgeons and hospitals took massive kickbacks, and Spanish translators fraudulently billed for services. In several cases, employers either underreported wages or misclassified employees so that they didn’t have to pay costly worker’s compensation premiums.

The only major employee fraud case from that year involved former NFL player Marcus Buckley, who had settled his worker’s compensation case in 2010 for $300,000. Buckley and his adjuster were later found guilty of wire fraud for falsifying an additional $1.5 million in reimbursement requests over the following years.

How Worker’s Compensation Fraud is Investigated in Alabama

Lawyers like Chip Nix investigate employer and insurance carrier fraud and outrage cases. Mr. Nix handles numerous worker’s compensation cases including fraud and outrage cases

Getting Help If You’ve Been Injured at Work in Alabama

If you have been injured at work in Alabama, or if you believe the employer or the insurance company are being fair with you, you may be entitled to benefits under the state’s worker’s compensation system or damages from the employer or insurance company. This is the case even if your employer has misclassified you as an independent contractor to avoid paying for coverage. Contact the experienced Alabama worker’s compensation attorney Chip Nix at 334-279-7770 or online for a free consultation to discuss your case.