Three Ways to Prevent Abusive Workers' Comp Claims During Layoffs

When making cutbacks, employers have to planshooting straight from the hip when it comes to
for any number of contingencies says notedthe reasons for the reduction in staff, employers
employment law authority of Wilmington,are much more likely to gain the support of
Delaware Attorney Margaret M. DiBianca. Oneworkers (workersxzcompxzkit) rather than get
such contingency that often goes under the radargunned down by a negative and hostile
is the possibility of fraudulent workers’workforce. Employee-assistance and outplacement
compensation claims. After counsel has given itsprograms are two common ways employers can
stamp of approval to the list of employeesoffer their help to employees after a layoff. The
selected for layoff, employers are best advisedbottom line is employees are less likely to file a
to turn next to the ways they can protectfraudulent claim if they believe their employer
themselves from a potential increase insincerely cares about their welfare.  
workers’ comp claims.3-Consider Offering a Severance Package
Here are three ways to protect your businessMany employers are surprised to learn that a
from abusive workers’ comp claims relating“severance package” need not provide
to layoffs:for payment of several months of salary and
1-Use Exit Interviews to Document the Absencehealth care. A severance agreement is far simpler.
of InjuryThe company agrees to pay the employees and,
Conduct an exit interview with each employeein return, the employees waive all claims they
who is subject to layoff. Ask the employee tomay have against the employer. This is your best
complete an exit questionnaire, which shouldprotection against fraudulent workers’ comp
include a question about whether the employeeclaims, but only if it is a valid and enforceable
has suffered a workplace injury and, if so,contract. To make sure you get what you
whether the injury has been reported. Also includeexpect, first consult with legal counsel and have
a question about the overall safety of the facilitythem draft a solid severance agreement for your
and the specific safety of their work environment.future use.
Even if that employee never brings a claim, theTry the WC Calculator  ( show the REAL COST
affirmative statement by many employeesof work comp.
attesting to the safety of the workplace canLook at WC 101 ( the basics about workers
serve as important evidence in any fraudulentcomp.
workplace claim. Always have the employee sign Do not use this information without independent
and date the questionnaire form.verification. All state laws are different. Consult
2-Be Kindwith your corporate legal counsel before
Kindness goes a long way in every facet of theimplementing any cost containment programs.
employment relationship and becomes positively ©2008 Amaxx Risk Solutions, Inc. All rights
crucial when there are cutbacks and layoffs. Byreserved under International Copyright Law.