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Kayla

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Unfortunately, the workers’ compensation system is subject to fraud by both employers and employees. On the employer side, some companies try to avoid the cost of paying workers’ compensation premiums by simply breaking the law and not insuring their employees. An audit in Florida, for example, found that 13 percent of employers did not have workers’ compensation insurance. Because premiums are based on payroll, some employers underreport their payroll.9 Employee fraud also occurs and can involve collecting benefits for exaggerated or nonexistent injuries. Fraudulent claims by employees can also include real injuries that were not work-related or stretching out recovery time so that disability payments continue for longer than is really warranted.10 To keep workers’ compensation rates under control, companies are becoming more aware of fraud and many are contesting claims they believe to be fraudulent (see the
Manager’s Notebook, “Make Sure Workers’ Comp Claims Are on the Up-and-Up”). Some states have law enforcement units that focus on helping to combat workers’ compensation fraud, but they operate with limited staff and budget.11
CHAPTER 16 • MANAGING WORKPLACE SAFETY AND HEALTH 513 In another attempt to control and reduce workers’ compensation costs, some employers are using on-site occupational health centers that provide immediate evaluation and treatment of injured workers. These on-site centers offer faster treatment of occupational injuries and can produce cost savings for employers.12 Other attempts to control costs focus on the causes of injuries and on their treatment.
For example, overexertion is a top cause of workplace injuries.13 Common examples of overexertion include heavy lifting, pushing, or pulling. Given the prevalence of overexertion injuries, and thus of worker compensation claims, it makes business sense to address issues, such as correct lifting techniques, that may reduce injury rates and costs. Overexertion is a common cause of injury across companies and industries, but the top causes of injury differ across companies. To effectively manage and control injuries and their costs, managers need to know the causes of injuries at their company and then address them.
Infrequent types of injuries can sometimes be more important than common ones. For example, repetitive motion injuries (such as carpal tunnel syndrome) can result in expensive and lengthy absences from work.14 Thus, it is important for a

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