In an attempt to increase business, many employment screening companies are expanding their services and promoting new options. For example, vendors such as TalentWise, HireSafe and LexisNexis now include a review of workers' compensation claims as an option for companies when they are looking to hire new employees.
Premium rates are relative to an employer’s loss experience. According to the Bureau of Labor statistics, workers’ compensation premium costs average 1.6 percent of payroll. In some areas with high injury rates, premiums might be as high as 4 percent of payroll. This leads employers to look for ways to keep claims and costs down.
Screening companies say checking job candidates for workers’ compensation claims can lower workers’ compensation insurance premiums, reduce the number of claims that are filed, improve workplace safety and identify fraudulent claims. 
But before retaining a company for these services, employers should consider compliance issues. Screening for workers’ comp claims carries risk and can open up a can of worms when it comes to legal concerns. This can include violations of the Americans with Disabilities Act, state disability laws and state laws that forbid retaliation against people who file workers’ comp claims.
Many job experts say previous workers’ compensation claims or injuries on the job are not grounds for rejecting a candidate. They say it is impossible to prove a workers’ compensation claim is an indicator of job performance. 
Law experts say the Equal Employment Opportunity Commission (EEOC) interprets screening for workers’ comp claims as a request for medical information. At the job offer state, employers are allowed to ask medical questions (including questions about workers’ compensation), as long as the questions are job related.
Employers considering screening for workers’ compensation claims should make sure they understand the Americans with Disabilities Act. Also remember the risk of a lawsuit brought under disability laws can be made even worse by the possibility of a retaliation lawsuit.
Instead of asking questions about previous workers’ compensation claims, questions in an interview can include questions on whether or not the potential employee has any restrictions that would impact his or her ability to do their job.
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on workers’ compensation claims . As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.