Spotting the red flags
Below are a few of the behaviors that might indicate that an employer
is not paying industrial insurance/workers' compensation for their employees.
Contact Fraud Investigations staff at 1-888-811-5974 or employerfraud@lni.wa.gov.
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Potential Fraudulent Activity by an Employer |
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IF you know an employer who… |
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Then… |
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- Is operating a business without the proper license or registration and has workers.
- Pays workers in cash and doesn't give them any kind of payroll stub.
- Gives workers a 1099 form instead of the standard W-2.
- Submits bids on jobs well below the industry standard.
- Pays workers other than in cash or check, by such things as free rent, reimbursement of expenses, barter, etc.
- Has a large number of corporate officers listed for the firm, and all work at the firm.
- Does not maintain or report complete and accurate employee payroll information.
- Pays workers on a piece work basis and does not record hours.
- Requires employees to work long hours but turns in fewer hours than they actually worked.
- Has a worker who gets injured on the job, and the employer promises to pay the doctor and medical bills rather than report the accident to L&I.
- Reports hours on injured worker's accident report that do not match the hours the employer reported to L&I.
- Has workers who find they do not qualify for unemployment insurance because the employer under-reported their hours.
- Hires their own kids to work for the firm (other than on a family farm).
- Has several "corporate officers" who do not exercise control of the business operations.
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