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14 Signs That Your Employer May Be Committing Workers' Compensation Fraud

Is your employer committing fraud?

All employees should be on the lookout for signs that their employer or potential employer is engaging in workers’ compensation fraud.

The list of signs below was inspired by this one from the Washington State Department of Labor & Industries.

These signs may indicate that your employer is not paying workers’ compensation insurance for their employees. If they aren’t, this could put you in a very difficult situation if you are ever injured on the job.

If any of these signs sound familiar, report the employer to the Fraud Investigations Department of the North Carolina Industrial Commission and, if at all possible, find another job.

Your employer may be engaged in workers’ compensation fraud if:

  1. They pay you in cash and don’t give you any kind of payroll stub.
  2. They give you a 1099 form instead of the standard W-2.
  3. They pay you other than in cash or check, by such things as free rent, reimbursement of expenses, barter, etc.
  4. They pay you on a piecework basis and do not record hours.
  5. They require you to work long hours but turn in fewer hours than you actually worked.
  6. You or somebody you know is injured on the job, and the employer promises to pay the medical bills rather than reporting the accident to the North Carolina Industrial Commission.
  7. The reported hours on an injured worker’s accident report do not match the hours the employer reported to the North Carolina Industrial Commission.  Continue reading