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Workers Comp Fraud May Rise Along With Premium Increases

If we didn’t see it every day, we might be shocked to find that a Queens contractor was arrested for not paying more than $150,000 in premiums for workers’ compensation insurance on behalf of his employees.
Konstantinos Missirlakis was also charged with grand larceny as a result of an investigation that officials at the New York State Insurance Department Frauds Bureau say found he underreported payrolls to escape the expenses. His employees, were they injured, would have had to use an account paid into by all employers in the state.
The problem for employees is that fraud like that allegedly done by Mr. Missirlakis could well be on the rise. New York’s Compensation Insurance Rating Board has increased the loss cost rate by nearly 8 percent. While it only covers administrative fees and other such costs, the increase could affect employers already facing difficult economic circumstances.
If you are an employee and want to make sure that you are protected in the case of an accident or injury, we recommend our tips on identifying workers’ compensation fraud to help you make sure that your premiums are paid and there are little to no hassles if you need to make a claim.
Times can be tough for everyone, but your employer is legally obligated to make sure that in the event of an accident, you don’t have any trouble receiving the benefits owed to you by New York state law. As we’ve noted in the past, it’s all too easy for employers to consider fudging data in the face of rate hikes.
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