A claim can be late because an employee didn't report an injury immediately, there may be an attempt to defraud workers' comp later, or the employee may think that the injury is too minor to report.
But a small cut may turn into an infection later – a common problem with diabetics. If fraud is an employee's goal, memories fade and there are no reports, so the claim must be taken on faith.
Since penalties are assessed to employers that report claims late, employers should report each legitimate incident quickly. Employers must submit a claim to its workers’ comp carrier within 72 hours of the injury. If they fail to do so, they are quietly dinged with a 40% higher cost penalty for their delayed action.
“Quiet penalties” are a deterrent meant to encourage employers to report claims or complaints of pain quickly. In most states, if a claim isn’t received within 7 to 10 days, all medical control is taken from the employer and given to the employee or to the state, which means the employer loses their legal rights.
It’s risky for employers to pay claims out of pocket and not report to WC. An injury can always grow into a massive claim.back