How Workers’ Compensation Fraud Takes Advantage of You and Your Coworkers

Attention, Washington State employers and employees: Did you know, even if you aren’t directly involved in or victimized by a fraudulent workers’ compensation case, the ripple effect of each statewide fraud case is still likely to reach you?

Employers and employees that are part of the Washington State Fund pay toward workers’ compensation premiums on a quarterly basis, and when fraud occurs, those premiums rise and everyone in the state network suffers. In 2016, Washington State businesses experienced a 2% general rate increase — a number that reflects that year’s open workers’ compensation cases across the board, including fraud and abuse of the system. Furthermore, a new proposed increase of 0.70% is expected to go into effect at the beginning of 2017 if approved.

Why does the L&I base rate matter? An employer’s industry will dictate what base rate they will pay. The resulting workers’ compensation premium cost is deducted from each employee’s hourly wages, as well as from the employer’s profits. When more fraudulent cases occur, premiums skyrocket, and less of your hard-earned dollars end up in your bank account. Even if your business has earned a claim-free discount following a three-year experience period without claims involving time-loss or disability benefits, base rate increases can still raise your final workers’ compensation rates.

Don’t get stuck sacrificing your earnings to pay for a coworker’s (or even a stranger’s) phony injury. Stop Claims sides with employers whose experience ratings and business success have been affected by workers’ compensation fraud. If you believe you’ve been victimized by fraud, our experts will help you face Washington State L&I representatives and boost your chances of a favorable decision. A success for one business facing fraud is equal to a success for employers and employees statewide. Let’s work together to prevent the bad apples from skewing the system against the rest of us!