Rampant Employer Workers' Compensation Fraud

February 7, 2012 by Randy Zeldin

There is a prevalent myth that workers' compensation fraud in Florida is the sole domain of cheating, scheming workers' compensation claimants who "game" the system. It is a lesser known fact that much of the fraudulent workers' compensation schemes are cooked up by employers, especially in the construction industry.

A typical fraud scheme involves an individual who sets up a "shell" company and purchases a minimum workers' compensation policy, reflecting a small work force. The individual who owns the shell company, will "rent" the policy to various construction subcontractors, who show the policy to general contractors in order to be hired for a specific job site. The subcontractors will pay a "kick back" to the owner of the shell company, usually paid through a check cashing store.

Rep. Daniel Davis of Jacksonville, has introduced a bill in the Florida House of Representatives, aimed at intense scrutiny of these workers' compensation construction fraud schemes.

Attorney Randy Zeldin, Esq., a Boca Raton workers' compensation attorney, favors passage of the bill and advocates increased scrutiny of employer workers' compensation fraud.