In Missouri the Labor Department’s Division of Workers’ Compensation (DWC) reports a significant increase in referrals for fraud and noncompliance for workers’ compensation violations. In the first quarter 2010, the Attorney General’s office received 87 cases as compared to 39 cases referred in the first quarter 2009.
The increase is attributed to the Division’s enhanced efforts in its ability to analyze more cases and the fact that employers are likely to cut coverage during hard economic times.
“These are staggering numbers, but we will continue to work with the Attorney General to enforce these laws so that Missourians injured on the job receive the benefits they deserve,” said Department Director Larry Rebman. “At the same time, we will work to remind Missouri employers of their obligations under the law.”
Any employer with five or more employees (one or more, if the employer is engaged in construction) must have workers’ comp coverage in Missouri, either by securing an insurance policy or by obtaining authority from the DWC to self-insure its liability.
For the last five years, approximately 80% of the cases referred to the Attorney General involved noncompliance – the failure of an employer to carry workers’ comp coverage. Of the 87 cases referred to the Attorney General this quarter, 67 involved noncompliance, 17 involved fraud by an employer or insurer (e.g. failure to report an injury that occurred), and 3 involved fraud by employees.
Failure to comply with the workers’ comp requirements is a Class A misdemeanor carrying a penalty of up to three times the insurance premium the employer would have paid or $50,000, whichever is greater. (workersxzcompxzkit)
Failure to report an injury is also a misdemeanor with a penalty of $50-$500 per violation.
Making a false representation in order to obtain a benefit is a class D felony carrying a fine of up to $10,000 or double the value of the fraud, whichever is greater.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers’ comp issues.
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