New Jersey Workers’ Compensation Fraud Penalties

• Dan T. Matrafajlo
• Wed Jul 2011
• Workers Compensation,
• 0

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.