Small Business Owners & Entrepreneurs

filed and is collecting worker's comp 6 of them have a heart attack and die on the spot from the shock.

Seriously, however, there may well be state laws against that, sounds like you might want to check with at least a knowledgeable and trusted human resources person, or an attorney.

This is not legal advice, and you really should check with someone knowledgeable about your state's laws particular to this subject, but you might want to slip her some cash, in an envelope, with no witnesses, instead of having a written record that she worked while getting worker's comp. As a gift, a small token. No way in hell should it be payroll, but that's just conjecture on my part.