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Problem 1: The HR department at Clearwater Electronics received a report of a work-related injury on the production line that resulted in the employee missing several days of work. Supposedly, the employee hurt his back while lifting a box of components. However, another employee reported that the employee was not really hurt and just wanted some days off. It is the responsibility of the HR department to process workers' compensation claims and make sure the claim is not fraudulent. Which statement gives the best reason for HR to ensure that the claim is legitimate?
Option 1: Fraudulent workers' compensation claims can lead companies to lie about injuries and illnesses in order to avoid paying higher insurance premiums.
Option 2: Fraudulent workers' compensation claims can lead to higher insurance premiums and penalties, so it is important for HR to protect the company and avoid costly mistakes.
Option 3: Fraudulent workers' compensation claims lead to companies misclassifying employees in order to avoid paying premiums for them.
Option 4: Fraudulent workers' compensation claims allow employees to take advantage of the system and say injuries and illnesses resulted from work while they actually happened elsewhere.
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