State cracks down on worker compensation fraud

State officials say they’re cracking down on employee and employer fraud in the workers compensation system.

They also want to give business owners hurt by the recession more time to pay for their share of the insurance that covers the compensation system..

“Labor and Industries is saying to employers, ‘If you need help, talk to us,’” Gov. Chris Gregoire said in a news release about the agency that handles workers compensation claims.. “And if you’re working under the table, we’re after you and your competitors are helping us.”

Gregoire noted that the agency is moving forward with several actions, including the addition of a small team of investigators to sweep construction jobs on nights and weekends, the use of a new audit system and a strengthened partnership with the Attorney General’s Office to crack down on employers who don’t pay their workers’ compensation premiums, medical providers who overbill and injured workers who file fraudulent claims.

Since 2004, L&I has increased collections by 46 percent, collecting nearly $770 million. The agency plans to build on its fraud fighting success this fall when it begins implementation of the Detecting Unregistered Employers program. It will take advantage of new technologies to identify businesses that have failed to register with the state and pay into the workers’ compensation system.

“For every dollar Labor and Industries spends to combat fraud, we’ve seen an eight dollar return,” Gregoire said. “By preventing and punishing fraud, we protect workers and honest businesses from unfair competition.”

At the same time, the state is promoting a program to help business owners struggling during the recession. The Labor and Industries Employer Assistance Program will help employers with overdue workers’ compensation premiums. It allows business owners to extend payment of their balances over time, helping them to manage precious cash flow while adjusting to the down economy.