Fraudulent Concealment
Fraudulent concealment is when an employer knows about the risk of injuries on the job, and deliberately conceals those risks from an employee. It can be through a direct lie, or lying by omission.
For example, if an employee works around toxic chemicals, and his employer assures him that the workplace is safe, thereby causing injuries to the employee, the employer has committed fraudulent concealment.
Fraudulent concealment can create a variety of distinct legal issues. First, it affects how the worker’s compensation system operates. Under most systems, worker’s compensation is the exclusive source of recovery for injuries on the job. This is meant to help these claims get resolved quickly, allowing employees to be compensated for their injuries, at minimal expense to the employer. However, if there is fraudulent concealment by the employer, these injury claims can usually go through the worker’s compensation system and the courts at the same time.
If an employee has a claim for fraudulent concealment, he or she can recover damages that go far beyond compensation for lost wages and medical bills. The employee can also get punitive damages – damages not attached to any single injury, but granted to deter future wrongful behavior by the employer.
If the employer raises a defense based on a statute of limitations, the fact that he or she engaged in fraudulent concealment may allow the action to go forward, even if the time limit has run. This is because, as a direct result of the employer’s actions, the employee could not know about his or her injuries, and the employer should not be awarded for his or her conduct.
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Last Modified: 09-18-2008 04:15 PM PDT
