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  • Writer's pictureGibbs & Sellers

Business owner accused of workers’ compensation fraud

There are certain events in life that can prevent employees in Alabama from being present at work. Things such as surgical procedures, major illnesses and serious injuries will undoubtedly require employees to need time away from work in order to recover. Fortunately, most full-time employees have workers’ compensation insurance, which allows for paid time off and retention of benefits. Unfortunately, it is not uncommon for employers to cut corners when it comes to workers’ compensation.

In another state, the owner of a construction company was reportedly arrested for failing to pay workers’ compensation premiums. Allegedly, the business owner evaded paying nearly $74,000 in premiums over the course of 10 months. According to federal investigators, payroll information was concealed so that the employer could avoid paying higher workers’ compensation premiums.

Reports said the company conducted over $442,000 in payroll over the course of the 10-month period. However, on the policy for the company’s workers’ compensation insurance, the owner allegedly reported an annual estimated remuneration of only $92,400. Authorities said the man was arrested and charged with workers’ compensation premium fraud. He faces up to seven years in prison.

Employers in today’s fast-paced world of business are always looking to cut costs. It’s unfortunate that some employers will choose to break the law in an attempt to save money. It is important for employees in Alabama to be familiar with the laws and procedures surrounding workers’ compensation. An experienced attorney can inform workers of their rights, answer any lingering questions and provide guidance during this time.

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