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Employer Fraud

Prevent Fraud in Washington State
– 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.

Potential Fraudulent Activity by an Employer
IF you know an employer who… Then…
  • 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.

Report Employer Premium Fraud
or
Call: 1-888-811-5974

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