Some companies wind up as targets of Alaska’s Special Investigations Unit (SIU) for suspected workers’ compensation lapses. This unit goes after companies that have flouted the rules and regulations of the workers’ compensation program to avoid paying workers’ legitimate claims for benefits.
But how could this be? You run a tight ship and make sure that all your paperwork is filed on time and correctly. How could something just slip through and get you into trouble?
How it can happen
It’s not that difficult to run afoul of the workers’ compensation program. One lapse, and a company can face fines and other legal censure for a lack of employee coverage. Perhaps your accountant mistakenly deducted premiums for workers’ comp from your employees’ paychecks or otherwise made them financially accountable for this coverage.
Cutting corners leaves you unprotected
There is no doubt that there is fraud in the workers’ compensation system. From workers injured elsewhere who fraudulently claim a workplace injury to companies that misclassify workers as independent contractors to dodge paying monthly workers’ comp premiums, there are always some who like to try to game the system in their favor.
It’s these cases that are ripe for detection from SIU teams ferreting out illegal activities.
Can companies insist workers waive benefits?
No. Any Alaska company that asks or advises its employees to waive their right to workers’ comp benefits if injured violates the program’s rules and can get into trouble with state authorities.
Does that mean that all claims are valid?
Not necessarily, as fraud operates on both sides of the benefits program. In these cases, the Special Investigations Unit may also uncover evidence of fraud from workers and claimants. Each fraud discovery is important to keep the integrity of the workers’ compensation system.