A man was arrested for allegedly filling for and collecting workers compensation benefits, while continuing to solicit and conduct business as a contractor.
The defendant is accused of collecting more than $68,500 in WC benefits after claiming a work-related back injury prevented him from working. According to the criminal complaint, the man was collecting benefits and doing work as contractor. Officials say he advertised and did home improvement work, landscaping and snow removal for an apartment complex. (WCxKit)
According to officials, the man was asked to complete "Verification of Employment" forms in order to continue receiving his workers comp payments. On those forms, he was asked, "Are you now employed?" and "Have you ever been employed or self-employed at any time while receiving workers compensation benefits?" He answered "no" to each of those questions.
In addition to the workers comp fraud charges, an additional charge state the man stole $3,000 from an elderly man. According to the criminal complaint, he installed a small patio roof on the gentleman’s home and quoted the customer $800 for the project. The man allegedly accompanied the elderly gentlemen to the bank and altered the victim’s withdrawal slip to read $3,800 instead of $800. (WCxKit)
The defendant is charged with three counts of workers comp fraud, two counts of theft by deception and one count of insurance fraud. Each count is a third-degree felony and carries a maximum penalty of seven years in prison and a $15,000 fine.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
An employer/owner of a roofing company allegedly defrauded his insurance company of over $107,000 in workers compensation premiums by misclassifying his workers on insurance policies.
The individual was arraigned in Hampden Superior Court and charged with two counts of workers compensation fraud and 4 counts of larceny over $250. He pled not guilty and was released on personal recognizance. (WCxKit)
The Attorney General’s office began an investigation after the matter was referred by the Massachusetts Insurance Fraud Bureau (IFB), which initially learned of the man’s activities from AIM Mutual Insurance Company (AIM). Investigators discovered during a four-year period the man allegedly misclassified his workers as carpenters, instead of roofers, in order to avoid paying higher workers comp insurance premiums.
Proper insurance premiums are calculated by the Workers’ Compensation Ratings and Inspection Bureau (WCRIB) which provides these rates based on the risk exposure of work conducted.
Authorities allege the man classified his workers as performing less risky work (as carpenters) in order to avoid paying a higher amount of workers comp insurance premium if he correctly classified them as roofers, a higher risk job classification. (WCxKit)
Authorities said the man told his insurance company he had a carpentry business and that any roofing was subcontracted to other businesses. IFB investigators discovered the man had employed full-time roofers since his first policy with AIM in May 2004 and, as a result of his fraudulent activities, he defrauded AIM of over $107,000 in workers comp premiums.
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Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
The report assesses the state of equal employment opportunity throughout the federal work force, including trends in the composition of the workforce, data concerning complaints of employment discrimination in the federal sector, and includes practical tips to help agencies improve performance.
Over the last 10 years, the EEOC has found subtle changes in the composition of the federal work force.
Overall, the participation rates of women, Hispanic or Latinos, and Asians have increased slightly. The number of women in the federal work force rose from 42.3% to 44.06%; Hispanics/Latinos from 6.81% to 7.90%; and Asian-Americans from 5.22%to 5.84%. The total work force increased by 15.09%. (WCxKit)
Additionally, in FY 2009, for the first time since FY 1995, the percentage of people with targeted disabilities in federal jobs held steady, halting a 13-year decline. However, despite a modest net gain of 236 employees in FY 2009 over FY 2008, people with targeted disabilities still remain below one percent (0.88%) of the total work force. Targeted disabilities include deafness, blindness, missing extremities, partial or complete paralysis, convulsive disorders, mental retardation, mental illness, and distortion of the limb and/or spine.
In FY 2009, federal employees and applicants filed 16,947 complaints alleging employment discrimination on the basis of race, color, sex, national origin, religion, age, disability and reprisal. Unlike the private sector, federal agencies themselves are responsible for processing and investigating charges of discrimination filed against them. The average processing time for conducting investigations rose from 180 days in FY 2008 to 185 days in FY 2009.
In addition, the average processing time for closing complaints was 344 days, an increase from the 336 days in FY 2008. Of the 6,905 cases closed on the merits, 2.98% resulted in findings of unlawful discrimination. In addition, the parties entered into settlements in 3,394 complaints, or 21% of the total complaint closures. (WCxKit)
“As the largest employer in the nation, the federal government should lead the way in creating a diverse and just workplace,” commented EEOC Chair Jacqueline Berrien. “Government employers need to continue to recruit and promote employees who represent the tapestry of America. They must also improve the efficiency of the complaint process so that justice delayed is not justice denied. We look forward to assisting the federal government to become an exemplary employer.”
\ Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Requiring employees to waive their rights under federal employment discrimination law and threatening them with dismissal for failing to comply violates federal law the EEOC charges in a recent lawsuit.
The EEOC alleges Cognis Corporation terminated a longtime employee after he refused to enter into a “last chance agreement.” allegedly waiving the employee’s right to file a charge with any civil rights commission or other government agency. (WCxKit)
It also prospectively waived his right to pursue relief in any forum if Cognis decided to discharge him in the future, according to Chicago District Director John Rowe, who supervised the EEOC’s administrative investigation.
Although the worker originally signed the agreement, he later rescinded it because, as he explained to Cognis, he did not wish to waive his civil rights. The man was immediately fired, the investigation indicated. According to Rowe, other employees were also asked to sign last chance agreements purportedly waiving their rights as a condition for keeping their jobs.
The agency seeks compensatory and punitive damages for the employee in addition to an order barring future retaliation and other relief. The suit, captioned EEOC v. Cognis Corporation, C.D. Illinois No. 10-C-2182, was filed in federal district court in Urbana, Ill. and assigned to U.S. District Court Judge Michael P. McCuskey. (WCxKit)
Rowe said, “We are always concerned when employers take measures which appear designed to prevent employees from making use of their rights under federal employment discrimination law. That problem is compounded when employees who resist these efforts face retaliation, including termination. That is sure to get our attention.”
Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.
Contact: RShafer@ReduceYourWorkersComp.com or 860-553-6604.
Join WC Group: http://www.linkedin.com/groups?homeNewMember=&gid=1922050/
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
A Reader Writes:
I am a newly hired workers' compensation management specialist tasked with creating a workers' comp management program at my company. Right now, we have one site, with plans to acquire more within the next five years. I've been assigned this project by the company's new president who thinks workers' comp is a good idea. But the other members of senior management are stonewalling the concept – they are subtle, but impenetrable. They have been with the company for years and have entrenched viewpoints. They view workers' comp costs as just another operating expense.
This is going to have a negative impact on my ability to design and implement a cost-savings program for the departments they manage. How can I convince them workers' comp costs are not set in stone and costs can be reduced, resulting in better fiscal health for everyone?
Bob Elliott Replies:
You are right on target when you say management commitment is a must when moving ahead with a workers' comp management plan. You need their clout to assure departmental cooperation, and you need their buy-in to obtain the resources you need to get this program started.
So where do you start? In my experience, management is primarily interested in the monetary impact and how it affects them. If you can head off the monetary impact before it affects them, you will be a hero, but first they need to know how close to danger they really are.
First, I would get assurance the company president is solidly behind me when I present the facts. It is unrealistic for the president to task you with program without supporting you. The president needs to be ready to institute a charge-back system so management feels the sting of unresolved costs where it counts most: their own pocketbooks.
Then, I would develop a small presentation detailing the financial impact of workers' comp costs. I would develop a Sales Required to Pay for Accidents matrix, tailor it to your business. Use the calculator at the bottom of this blog or at this link: http://www.ReduceYourWorkersComp.com/calculator.php
For example, if you sell nuclear generators providing power to large facilities - Ask: How many generators must be sold just to break even on just one open workers' comp claim, with no signs of closing? Answer: The company probably must sell a dozen generators. But, since the claim is still open and time is running, until the claim closes, it continues to bleed company coffers dry. Multiply that by the number of actual open, going nowhere claims, and it's a huge figure.
If your company installs carpeting – how many rooms of carpeting will you have to sell – minus labor and travel costs – to compensate for the open claims you have? If you sell widgets, how many widgets must you sell and gain net profit in order to cover the costs of open claims?
When you present workers' comp in this light, — in terms of the real business of making money, your management must then take a step back and take notice — especially if it's their cost centers being charged for these claims.
So, on slide 1 show how much workers' comp costs in terms of the business you perform.
Slide 2 could contain some benchmarking — How well do your costs measure up against the national average or to other companies?
After you've scared them to death though, you must be ready with concrete workable solutions. Keep it VERY high level. Management isn't interested in the details. Provide them with a timeline or calendar of program events and milestones. (WCxKit)
Then wow them with the cost savings they can expect to see within the first year. This will really get their attention and they will be delighted.
\Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
WC Calculator: http://www.reduceyourworkerscomp.com/calculator.php
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
The sole survivor of a scaffolding accident in Toronto last Christmas Eve that killed four men has reportedly filed suit seeking $16.3 million in damages.
Word of the suit comes not long after the Ministry of Labour made 61 charges against a pair of companies and certain company officials. (WCxKit)
The Globe and Mail reports the lawsuit filed by 22-year-old Dilshod Marupov names the companies involved and the Ontario Ministry of Labour.
Marupov, who is from Uzbekistan, fell 13 stories when scaffolding he was on while repairing balconies on a Toronto apartment building snapped in half. Both of his legs were crushed, his spine was broken, and he was in the hospital for several months.
Charges were made against Metron Construction of Toronto and Swing N Scaff of Ottawa under the Occupational Health and Safety Act. The charges include failure to ensure workers used proper devices to prevent them from falling and failure to ensure the platform was not overloaded.
We are suing them because we think they have a duty that they didn't exercise properly, claimed Marupov's lawyer, William Friedman. (WCxKit) Allegations in the lawsuit have not been proven in court.
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Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
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