I am a lawyer in CT and practice in this area of the law. If the person was an employee, and claims to have been hurt on the job, then the easiers thing to do is to do nothing unless the guy files a worker's compensation claim. once the employee files the worker's comp claim, you should refer this to your worker's comp insurance company as they provide you with a defense and will go the investigation and determine whether the employee is faking it or whether the employee really did get hurt on the job. you may bring in witnesses and a doctor to support your claim that this did not happen at work. If you do not have insurance to cover this matter, then you need to hire a litigation attorney to defend you in court if your dad's company is sued.