Posted On: May 6, 2010 by Steven J. Malman

Workers’ Compensation: Company to Settle Over Allegations it Discouraged Injured Employees to File Claims

To settle allegations that it discouraged its employees from filing workers’ compensation claims and instead pressured them into using their own health insurance to cover their medical costs, Supermarket chain Raley’s will revise its workers’ compensation policies and pay $550,000 in a settlement with six California counties. By agreeing to settle, the company is not denying or admitting to the allegations.

Raley’s also has consented to improve record-keeping, provide mandatory workers’ compensation training for store managers, and contact a medical advice company to assess worker injuries and suggest treatment. Raley’s CEO and president Michael Teel says the supermarket chain cooperated with investigators and immediately fixed any problems to make sure that the company was in compliance with state workers’ compensation regulations.

An investigation was started in 2007 after a complaint was made that managers at one Raley’s owned store tried to stop an injured worker from filing a workers’ compensation claim. Two managers were later charged with insurance fraud. Investigators said that in an attempt to make the store appear to have an injury-free record and obtain bonuses as a result, managers discouraged workers who had gotten hurt from filing workers’ compensation claims. Investigators also discovered “widespread” instances of other managers trying to persuade injured workers to use their health insurance coverage instead of filing for workers’ compensation.

Chicago Workers’ Compensation
You have the right to file an Illinois workers’ compensation claim against your employer if you were injured on the job. Your employer cannot order you to do otherwise or punish you if you seek to avail of your workers’ compensation benefits. You shouldn’t have to pay for medical expenses caused by injuries or illnesses that you sustained because of your job.

Raley's to pay $550,000 to settle workers' comp accusations, The Sacramento Bee, May 4, 2010

Raley's case settles for $580,000, Mercury News, May 4, 2010

Related Web Resources:


Illinois Workers' Compensation Commission

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