Can an employer commit workers’ compensation fraud?

Yes. The fraud may not just punish the employer but result in a benefit to the employee. For example, if an employer fails to obtain insurance on its employees, New Jersey law punishes the employer with up to 18 months in jail and a $10,000 fine. A fund exists to pay benefits to an employee who is the victim of the employer’s failure to obtain insurance.

Another example of employer workers’ compensation fraud is making false or misleading statements causing an employee to lose benefits. An employer may have to pay benefits due, with interest, if the employer fraudulently delays or denies benefits.