Problem Employee
You have to be careful during the period preceding denial - you can't terminate an employee, after all, for making a valid workers' compensation claim. Depending upon the nature of employment, union issues, internal policies, etc., it makes sense to start building an appropriate file documenting any problems with the employee, warnings issued, etc. You may wish to consult with an employer-side labor lawyer in your state about these issues, generally, such that you can set up a good system for disciplining and terminating employees which minimizes the risk of litigation.
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