How Laid Off Workers Innocently Become Fraud Perpetrators.

The story that follows is fiction. It is based, however, on a true situation faced by employers and workers’ compensation insurers in Californian where I live. Ralph was a good employee. He arrived for work every day on time. He did his job eight hours a day and never goofed-off. He was loyal to his employer. His diligence got him raises and promotions.

In December 2022 Ralph’s boss came to him and said, regretfully: “The market fall has hit me hard. I can’t afford to keep paying you. You are laid off.” He was shocked. He could say nothing. He could do nothing to keep his job. He packed up his personal belongings, said “goodbye” to his boss and left. The next day, he went to the state unemployment office.

He filed the first claim in his life for unemployment benefits. He was ashamed but had no choice. Coming out of the unemployment office he met a pleasant man who offered him a cup of coffee. Having nothing better to do, he accepted the man’s offer of a cup of coffee and sat, drinking it, on a bus bench and talked about his troubles. The man asked detailed questions about Ralph’s job. He explained that the employer was not alone. Other people were suffering just like he was. He explained there was a way to tide Ralph over better than unemployment insurance. The employee was dumbfounded. “Are you offering me a job?” he asked.

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