New York Reports Surge in Workers’ Comp Fraud With $2.7M Identified in 2024

Workers’ compensation fraud in New York State climbed significantly in 2024, with the Office of the Inspector General identifying more than $2.7 million in fraud—a nearly 30% increase over the previous year. Inspector General Lucy Lang presented the findings during the April meeting of the New York State Workers’ Compensation Board, also reporting 14 fraud-related arrests, another 30% year-over-year spike.

Lang’s annual report revealed restitution and fines exceeding $1.4 million were recovered on behalf of defrauded state agencies, insurance carriers, and employers. Among the major cases was a Brooklyn-based billing company, Medlink, which allegedly redirected more than $1.9 million intended for surgeons treating injured workers. Of that, over $1.3 million came from the New York State Insurance Fund.

Other investigations included a Saratoga paving business owner who failed to carry required workers’ comp coverage, exposed after an employee was injured on the job. Additionally, fraudulent claims were discovered involving employees collecting lost wages while working other jobs, including a UPS worker coaching high school soccer and a correction officer moonlighting as a bus driver.

These findings highlight continued efforts to curb fraudulent claims and misuse of the workers’ compensation system, particularly through increased investigative oversight across sectors such as construction, transportation, and state agencies.