Running reports on claims can help employers review prospective employee’s records before making hiring decisions.
According to the National Academy of Social Insurance, an estimated total of $62,307,000,000 in Workers’ compensation payments were made to civilian employees in 2014 *.
Workers’ compensation provides medical care, rehabilitationion, and cash benefits for workers who are injured on the job or who contract work-related illnesses. It also pays benefits to families of workers who die of work-related causes.
Workers’ compensation benefits are paid by private insurance carriers, by state or federal workers’ compensation funds, or by self-insured employers.
In a study done by the Wyoming Department of Workforce Services, researchers found that the average duration of Worker’s Compensation claims peaked during a period of economic downturn, suggesting that employees who believe their employment outlook is poor, particularly those in states that do not require employers to hold a position for those on workers’ compensation, may have an incentive to stay on workers’ compensation for as long as possible **.
This exploitation of workers’ compensation can be alarming to employers, as out of the 62.3 billion dollars paid in benefits, only 12.9 billion came out of state funds or federal programs, leaving 49.4 billion dollars to be paid by private carriers and self-insured employers *. Most employers, however, are left in the dark as to their applicants’ past workers’ compensation claims.
For employers who are interested in their employee applicants’ history with workers’ compensation, AAA Credit Screening offers Workers’ Compensation reports. These reports provide the injury description, injury date, filing date, weekly compensation rate, and compensation dates for workers’ compensation claims. The availability varies by state. Signed releases authorizing a background check may need to be faxed directly to the record holder and some states have specific forms they require. All employers should verify they are in compliance with the ADA and FCRA.