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Workers’ compensation fraud puts maryland workers at risk

| May 25, 2017 | Workers' Compensation

Keeping employees safe while on the job is paramount to owning and operating a successful business. Maryland employers are expected and required by law to carry workers’ compensation coverage on all of their employees. This coverage protects workers in the event that an on-the-job accident or illness should occur. This program provides monetary benefits to help keep the families and the worker with a form of income to sustain them while the injured are not able to work. When an owner does not comply, those who are employed by them are at jeopardy.

A business owner in another state has recently been indicted for workers’ compensation fraud after apparently failing to pay premiums. Authorities allege that the 48-year-old man did, in fact, carry coverage but made a substantial amount of claims, which resulted in his premiums increasing drastically. Investigators then discovered that the owner had created a second company, and only used what he referred to as subcontractors to work at the larger job locations.

After an earlier investigation, authorities found that a second company was set up by the owner to hide the employees of the original company so the employer could avoid paying the insurance premiums. Records indicate that the first company has employed workers who earned income on a yearly bases since 2006. During this time period, it has been estimated that the 48-year-old has avoided paying over $66,000 in workers’ compensation premiums.

Owning a Maryland business can be stressful but has the added benefit of flexibility and possible financial stability. In order to maintain both, the employees and customers should feel like they make a difference and are valued. Carrying workers’ compensation insurance is not only a law; it is an act of respect to allow some financial security should an employee be hurt while on the job. When someone has suffered a workplace injury and is finding the process of filing and receiving benefits challenging, an attorney can help walk the victim through the steps to file and appeal, should one be necessary.

Source: workerscompensation.com, “Owner of Boston Construction Companies Indicted for Workers’ Comp Fraud“, May 24, 2017

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