Some strategies are legitimate—like using a split-classification system (in state's that allow it) for employees whose daily routine involves them in several kinds of tasks. But far too many contractors cut corners in ways that amount to outright fraud. An article at constructiondive.com by Kim Slowey points to several common ways contractors commit worker's comp fraud:
- Paying cash under the table to reduce the total payroll on which worker's comp premiums are based;
- Treating workers as independent subcontractors when they actually meet the criteria for employees;
- Setting up shell companies that look like small sole proprietorships during insurance audits.
In the past, insurance companies conducted most investigations into worker's comp fraud, but now state agencies are getting involved directly, Slowey reports. Regardless of who uncovers the fraud, the consequences will almost certainly include payment of unpaid premiums plus interest and fines, and in extreme cases can result in jail time.
Read more at constructiondive.com
Related Stories
How to Create a World-Class Remodeling Team
Great remodeling companies position themselves for the future with the right players
Everyone Should Have a Number: KPIs for Your Design Build Team
Measuring key performance indicators guides your team to success while creating accountability and ownership
How to Revamp Your Pre-Construction Process
Experiencing too much slippage and delays? See how Bridget Bacon of Red House Design Build solved these issues by improving the remodeler's pre-construction process
How This Remodeler Revamped Their Pre-Construction Process
Bridget Bacon of Red House Design Build outlines how she helped transform the pre-construction process for improved finances and morale
Building A Small Projects Division from the Ground Up
Through hard work and careful strategy, Harth Home Services has seen big growth
A Mindset of Serving Others
A research study shows surprising results about what makes us take ownership of our work.
3 Keys to Successful Team Management
On this episode of Women at WIRC, hear Laura Burnes delve into her approach to leadership and project management, in addition to sharing insights into Adams + Beasley Associates' winning culture.
4 Steps to Prep Your Business for Contraction
How a remodeling company plans ahead for the worst of times (and the best of times)
Helping Remodelers 'Get Their House In Order'
From remodeler to NARI executive to industry consultant, Diane Welhouse uses her expertise to help business owners