Disgruntled workers or dissatisfied angry clients customers arguing having complaint dispute conflict with lawyer about bad contract demanding fraud compensation negotiating at work office meeting

10 Types of Workers’ Compensation Fraud     

Philadelphia witnesses around 63 fatal, work-related injuries annually. Hence, all employers are bound by law to offer workers’ compensation insurance coverage to employees. As workers’ compensation insurance costs continue to rise, some companies attempt frauds to avoid paying the claims.  

An experienced Workers’ Compensation Attorney Philadelphia can identify these frauds.

     1. Underreporting Employee Injuries

Over 668,000 Philadelphia residents are employed. Workers may become injured at work at any time, but not every injury is reported to the insurance company. Some employers may not want to pay workers’ compensation premiums or feel that specific claims are too minor to file.

    2. Denying Benefits to Unaware Employees

Some employers would rather risk an injury lawsuit than admit fault and payout claims. Injured workers may not know what workers’ compensation benefits they are entitled to and who to contact in the event of an accident.

    3. Denying Legitimate Claims

Employers may purposefully deny workers’ compensation claims because they feel that these claims are invalid or exaggerated. An experienced workers’ compensation attorney in Philadelphia will know how to handle these cases, especially if new evidence comes to light later.

    4. Falsifying Employment Documents

Many unethical employers fabricate employment documents to avoid paying workers’ compensation premiums. They may create fraudulent notations on payroll records to make it appear as though an injury never occurred at work.

    5. Creating Fake Identities

Some companies are even known to create false identities for some employees, adding them to insurance databases with fake names and bogus Social Security numbers. When you file a claim, the insurance company will do some checking, so it’s essential to have all of your paperwork in order.

    6. Misclassifying Employees as Independent Contractors

It is illegal for employers to misclassify workers as independent contractors to avoid paying required premiums. However, several employers do this to cut costs. Misclassification is a violation of state and federal laws.

    7. Employees Working with Disabling Injuries

Disabled workers may cover up their disabilities and continue to do their jobs after suffering an injury. Both employees and employers underreport injuries sometimes since both parties benefit from the arrangement.

    8. Misleading Employees to Underreport Injuries

The injured worker gets to keep their job and income, and employers can avoid paying workers’ compensation benefits. Workers who do this will often report to work with a doctor’s note that states they are fit for duty. 

    9. Paying Employees in Cash

Some employers resort to out-of-court cash settlement options because it is so easy to pay workers off the books. These payments are often called “under the table” wages and are illegal as per state and federal laws that require workers to be paid a prevailing wage.

    10. Recruiting from the Ranks of Convicted Felons or Illegal Immigrants

In some cases, employers look to hire workers with a criminal past to cut costs on employment taxes and workers’ compensation premiums. Employees with criminal histories may be unaware of their rights to workers’ compensation in Philadelphia.

Final Thought

If an injury occurs and a claim is denied or underpaid, filing a lawsuit against your employer may be necessary. Workers’ compensation lawsuits can take a long time to resolve, and hiring a workers’ compensation lawyer in Philadelphia is your best option for resolving this matter quickly.


Welcome to the Night Helper Blog. The Night Helper Blog was created in 2008. Since then we have been blessed to partner with many well-known Brands like Best Buy, Fisher Price, Toys "R" US., Hasbro, Disney, Teleflora, ClearCorrect, Radio Shack, VTech, KIA Motor, MAZDA and many other great brands. We have three awesome children, plus four adorable very active grandkids. From time to time they too are contributors to the Night Helper Blog. We enjoy reading, listening to music, entertaining, travel, movies, and of course blogging.

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