New Jersey Workers’ Compensation Fraud Penalties
Workers’ compensation fraud is committed when an individual or organization willfully falsifies information in order to receive or deny benefits. New Jersey codified penalties for workers’ compensation fraud in 1998. Under this law such fraud is a criminal act, subject to civil and criminal penalties.
An individual who “purposely or knowingly” offers false information in order to obtain workers’ compensation benefits may be liable to repay the amount in question. In addition, simple interest may be added, and all benefits related to the case are subject to forfeiture.
If an employer misrepresents a worker’s claim in order to evade full payment of benefits, or even to delay payment, it is an act of fraud. The employer may be liable to pay the amount due plus simple interest, along with attorney fees and costs. If the employer fails to provide workers’ compensation insurance coverage, civil penalties may ensue, up to $1000 for the first 20 days of non-coverage, and up to $1000 for each 10-day period thereafter. The employer also faces a possible fine of up to $10,000 and 18 months in jail.
Health care workers and other professionals who are convicted of workers’ compensation fraud may face as much as 5-10 years in prison and loss of license. They may also receive a fine of up to 5 times the amount of the claim, or $150,000.
If you believe an act of workers’ compensation fraud has been committed against you, or if you are accused of fraud, you need an expert you can trust. Call New Jersey workers’ compensation lawyer Dan T. Matrafajlo today at (908) 248-4404.
Dan T. Matrafajlo, Esq. is the Managing Member and Lead Partner at Beninato & Matrafajlo, Attorneys at Law, LLC, a New Jersey-based personal injury law firm with offices in Elizabeth and East Brunswick. With over two decades of experience representing clients in complex matters—including motor vehicle accidents, workers’ compensation, and wrongful death cases—he has recovered over $100 million on behalf of his clients and is known for securing significant results. He has also helped shape New Jersey personal injury law through notable Appellate Division decisions such as Hardison v. King and Frenklakh v. Lojek, with his litigation work featured in the New Jersey Law Journal, underscoring his authority in the field.
Mr. Matrafajlo was recognized as a Super Lawyers® Rising Stars honoree from 2012 to 2017 and is a member of the Million Dollar Advocates Forum—an honor reserved for attorneys who have achieved multi-million-dollar verdicts and settlements. Combining deep legal expertise with a client-focused approach, he provides strategic, results-driven representation while guiding clients through every stage of the legal process. He earned his Juris Doctor from the University of Miami School of Law and is admitted to practice in both New Jersey and New York.
