Compensation Claims - What Employers Need to Know

Employers have become very aware of the highsubject to certain conditions such as a job-related
costs of compensation claims. The loss to Americanmedical review.
business from both fraudulent claims and re-injury3. Any questioning in a job interview should be
causes many employers to want to know whether arestricted to whether the person can perform the
job applicant has a history of filing workers'essential job functions with, or without, reasonable
compensation claims.accommodation. That is another good reason to have
At the same time, the Federal Americans withwell-written job descriptions so it is clear in an interview
Disabilities Act (ADA), as well as numerous state laws,exactly what the job entails.
seek to protect job seekers from discrimination in hiring4. If a candidate discloses a disability, then there should
as a result of filing valid claims. The ADA also seeksnot be any follow-up. Questioning should be limited to
to prevent the discrimination against workers who,whether that applicant can perform the job.
although suffering from a disability, are nevertheless5. If a history of filing workers' compensation claims is
able to perform essential job functions as long asfound, then the offer may only be rescinded under
there are reasonable accommodations.very limited circumstances, such as:a. The applicant
The bottom line is that an employer cannot requesthas lied about a workers' compensation history or
workers' compensation records in order to have amedical condition, usually during a medical
policy of not hiring anyone who has made a claim. It isexamination;b. The applicant has a history of filing false
discriminatory to penalize a person who has exercisedclaims;c. The past claims demonstrate the applicant is
a lawful right in a lawful way and filed a valid claim.a safety or health threat to himself or others in the
Employers are well-advised to contact a labor lawyeropinion of a medical expert;d. The past claims
before seeking to obtain workers' compensationdemonstrate the applicant is unable to perform the
records. A labor law expert can assist an employer inessential functions of the job even with a reasonable
preparing company policies, job descriptions, and formsaccommodation.
and procedures necessary to comply with the ADA,6. If the applicant has lied on a medical questionnaire, or
such as a conditional job offer and medical reviewto a doctor performing a pre-employment physical,
form.then the employer may be justified in rescinding the job
The following brief summary describes the majoroffer based upon dishonesty. If an applicant has a
points involved in obtaining and using workers'history of multiple claims that have been denied, then
compensation records.an employer may be justified in rescinding the offer
1. There are wide variations between the states in thebased upon a history of dishonest conduct. The
availability of these records. In a few states, thereason is based upon an inference of fraud, not
records are not available to the public, period. In otherdisability. Some firms contend that a workers'
states, it can take two to three weeks to obtain acompensation record may also be used to determine
record. In some states, there are special requirementsthe truthfulness of information on a job application on
before obtaining the records, such as a notarizedthe theory that an applicant may try to hide a past
release. Because they are familiar with stateemployer where a claim was filed. However, even
regulations, background screening firms can assistwith this justification, if used, the best practice may be
employers in obtaining these records.to review the records post-hire only.
2. Under the ADA, an employer may not inquire aboutWhat does all this mean? Before attempting to utilize a
an applicant's medical condition or past workers'search for workers' compensation claims as part of a
compensation claims until a conditional job offer hasscreening program, an employer is well-advised to
been extended. A conditional job offer means that aconsult with their attorney.
person had been made an offer of employment,