Occasionally we write about significant cases or situations that do not directly relate to workers compensation, and this is one of those issues. We do this because those of us handling workers compensation need to be aware of human resource and employment issues from a macro level.
Kmart Corporation will pay $120,000 and furnish other relief to settle an age harassment, constructive discharge and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced. The EEOC charged Kmart discriminated against a 70-year-old pharmacist at a Honolulu store.
According to the EEOC’s suit, over the course of four years, a pharmacy manager openly said on several occasions the pharmacist was “too old,” “should just retire,” and was “greedy” for continuing to work at age 70. Further, the EEOC said, the manager continued to humiliate her in writing by stating, “The pharmacy is no longer your forte.” and “You need to retire from pharmacy work now.” in a communication book open to the entire department.
The manager also purposely scheduled her to work on Sundays – knowing she attended church those days – to encourage her to quit, the EEOC said. The agency further contended the victim complained to a district manager, general manager and human resources manager regarding the age-based harassment, to no avail.
Further, the EEOC charged, Kmart threatened legal action against the pharmacist using a pretext on an unrelated matter to retaliate against her for her discrimination complaint. Finally, the EEOC said, she quit to escape the mistreatment.
In June 2009, the EEOC filed its lawsuit in U.S. District Court, District of Hawaii (EEOC v. Kmart Corporation, et al., Case No. CV09-00300 SOM BMK), claiming Kmart failed to take remedial action, forcing the pharmacist to resign. The EEOC argued the harassment and Kmart’s failure to address it adequately were in direct violation of the Age Discrimination in Employment Act (ADEA).
“Instead of addressing this pharmacist’s legitimate complaints of age discrimination, Kmart made a bad situation worse by threatening her for complaining,” said EEOC Acting Chairman Stuart J. Ishimaru. “Such retaliation only compounds an employer’s culpability.”
In cooperation with the EEOC, Kmart entered into a three-year consent decree stipulating Kmart post a notice on the matter; hire an EEOC trainer; review and revise its existing anti-discrimination policy; provide annual ADEA training to all staff; and ensure performance evaluations reflect discriminatory misconduct by management staff.
“Older workers should be valued for their experience, not viewed as a liability,” said Anna Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Hawaii in its jurisdiction. “Under no circumstances will the EEOC tolerate employers pushing out their older workers simply because of age. The EEOC forcefully protects people against this kind of age-based discrimination.”(workersxzcompxzkit)
Timothy Riera, director of the EEOC’s Honolulu Local Office, added, “Employers should handle complaints of discrimination, including harassment, in an expeditious manner. Training on a company's EEOC policies should occur periodically, and if someone if found to be in violation, appropriate disciplinary action should be taken immediately.”
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. He can be contacted at: He can be contacted at: Robert_Elliott@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.
Workers’ compensation cost control information is readily available for large companies; but what about the small company?
If you own a small business where you are president, risk manager, occasional clerk and occasional janitor all rolled into one, you may not have the financial resources to have an insurance manager or safety supervisor.
Here are some recommendations on how you can control your workers' compensation cost without spending a lot of additional money.
1- Avoid Injury Claims
As the owner of a small business you are most likely the one who trains new employees on what to do in their jobs. Make sure the new employee understands how to perform the job in a safe manner. As you train the new hire emphasis all the things the employee can do to avoid on-the-job injury. Explain to the employee proper lifting techniques, proper use of machinery, and proper use of safety gear. Make sure the employee understands the safety requirements by taking time to observe the new employee in the performance of his/her job duties. Immediately correct any activity by the employee you know is different from the safest way of doing the job.
Safety does not stop when you have the new employee trained in job performance. It is crucial to continue to promote safe work habits to prevent employees from being injured. Any time any employee, new or old, is observed acting in any manner that is not in compliance with your safety program, take the time to re-train the employee on safe job performance. To keep a safe work environment the on-going promotion of safety is necessary.
2- Drug-free Workplace
By some estimates, up to fifty percent of workers’ comp claims occur because the employee is under the residual effects of illicit drugs or alcohol. By eliminating the effects of drug and/or alcohol abuse the employee is more alert and less likely to commit an act or activity prone to causing an injury.
Injuries Happen – Unfortunately!
Despite your best efforts to prevent injuries they do happen. What you do when an injury occurs has a major impact on your future work comp premiums. Make sure all employees know they must report any work related injury as soon as it happens, even on weekends or night shifts. Complete a First Report of Injury state form (obtain a few copies from your insurance broker before any accidents occur) with as many details as you can gather. If you run out of space, attach additional pages.
The more information you provide to the insurance adjuster and to the state board of workers' compensation, the better. Take pictures of the accident scene. If any of your employees witnessed the accident have them write down a detail description of what they saw and what happened.
Drug Test
As a part of your drug-free workplace policy, administer a required drug, usually done at the time of the employee's initial medical treatment. If the employee wants to delay initial medical treatment, insist the drug test be obtained the same day as the accident. In most states the workers’ comp claim can be either denied or the benefits reduced if the employee is under the influence of illicit drugs or alcohol.
3- Initial Medical Treatment
In the states allowing the employer to select the medical provider for the employees' injuries, exercise your choice and do so. Prior to any injury claims, contact your insurance broker and obtain a list your insurance company's preferred work comp medical providers. Post this list in the break room, and/or by the time clock and other places readily available to all employees. Be sure your injured employee is aware of the medical facility to obtain the initial medical care.
4- Prompt Reporting
As soon as you have arranged for the employee's medical treatment and drug test, you should immediately report the work comp claim to the claims office. Provide to the claims office the First Report of Injury form, the pictures of the accident scene, the written statements of the co-workers who witnessed the accident and any other information you have. The more information you can provide to the work comp adjuster, the better job the adjuster can do in managing the claim.
5- Return-to-Work Program
After an effective safety program, the next best thing a small employer can do to control work comp cost is to have a Return-to-Work Program. A quick way to increase your work comp premiums is to refuse to allow light duty work. The money the insurance company pays the employee in temporary total disability benefits is calculated into your work comp premiums for the next three or four years.
If the employee is not released by the treating physician following the initial medical treatment, contact the employee, the adjuster and the medical provider. Let all three of them know you want and need the employee back at work. Advise each that you are willing to work with any work restrictions the medical provider may impose.
Plan ahead for the modified duty for the employee. Arrange for assistance in lifting heavy loads, provide a chair to accommodate standing restrictions, etc. When the employee does return to work on modified duty be sure to comply with the medical provider's restrictions. You do not want to cause the employee to re-injure themselves and be off work even longer than they would have been otherwise.
6- Other Ways to Influence your Work Comp Cost
Once you have reported the claim to the claims office, don't stop there. Keep in touch with the adjuster. Know what the adjuster is doing on the work comp claim.
Keep in touch with the employee and know what the employee's medical condition is. Know when the employee is going to be back at work. Let the employee know you value his/her contribution to your company and that you need them back at work.
Do not try to be the only safety officer within your company. Build a culture where safety is everyone's responsibility. Let the employees know the more money spent on workers' compensation insurance premiums is less money available for raises and other job benefits. (workersxzcompxzkit)
Plan Ahead
If you wait until you have a workers' compensation claim made by an employee to address controlling your work comp cost, you have waited too long. Take the recommendations made here and create a formal business plan on managing and controlling your work comp cost. Use these guidelines to prevent the injuries from occurring and to mitigate their cost when they do occur.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
California law mandates employers reimburse all employees for any “work-related expenses.” Mileage, travel expenses, cell phone usage costs, and the cost of maintaining uniforms are examples of work-related expenses. The costs of defending a lawsuit if an employee is sued for work-related conduct (and like matters) may also be a reimbursable expense. The further states employees cannot waive the right to be reimbursed for work-related expenses.
According to a recent decision of the U.S. District Court for the Northern District of California, the law means even if employees don’t turn in expense reports in compliance with company policy, employers nonetheless must reimburse them.
Moreover, the court determined employers are obligated to reimburse work-related expenses even when employees don’t follow through with a formal reimbursement request if the employer knows or has reason to know an expense was incurred.
To encourage employees to submit expense reports in a timely manner and ensure all expenses are reported, employers can implement two steps.
1. Make sure your expense reimbursement policy mandates employees to report all work-related expenses, no matter how small the expense may be.
2. Inform employees if they do not submit expense reports in a timely way, lack of following company policy is factored in during their overall performance evaluation, and they may be subject to discipline. (workersxzcompxzkit)
(Although employers must reimburse employees for expenses even when company policy is not followed, employers are allowed to discipline employees for not following company policies. However, this is a general discussion and you should check with corporate legal counsel when instituting any policy.)
To avoid claims for unreimbursed expenses following an employee departing the company, ask employees at the time of separation to sign a written document confirming all work-related expenses were reimbursed.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
For failing to carry compulsory Employers’ Liability Insurance (workers’ compensation insurance) a shop owner was fined £2,100 ($3,147.00) and ordered to pay £1,850.80 ($2,773.00) in costs following an investigation by the Health and Safety Executive. HSE’s investigation found the employers violated the insurance requirement four times.
While public liability insurance is generally voluntary, employers' liability insurance is compulsory and enables an employer to meet any costs relating to employees' injuries or illness whether caused on or off site.
HSE Inspector Andrea Robbins, said there is no excuse for not having the insurance. "Employers' Liability insurance is a legal requirement for all employers in Great Britain," Robbins commented. "As well as being a legal requirement, the insurance offers important protection for employers if an employee is injured or suffers from disease as a result of their work. (workersxzcompxzkit)
"The failure of employers to insure is seen as a serious matter and HSE will continue to refer appropriate cases to the magistrates for their consideration."
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
A Seattle man was sentenced to six months of electronic home monitoring and must pay more than $26,000 in restitution for first-degree theft in an insurance case, according to the state Office of the Insurance Commissioner.
The OIC reports the man claimed an on-the-job back injury to his employer in 2006. He was placed on temporary total disability and received disability pay from his employer's insurer, Alaska National Insurance. Doctors subsequently ruled him unable to go back to work.
Five weeks following the injury, investigators working for the insurer videotaped the suspect working on his sailboat at a Seattle marina.
The sanding, painting, climbing and moving of machinery were all contrary to the physical restrictions imposed by his doctors, according to the Washington insurance commissioner's Special Investigations Unit.
When shown the video, the independent medical examination doctors who had originally seen the individual reversed their original opinion as to his ability to work. (workersxzcompxzkit)
The man pleaded guilty to the charge. The restitution covers unnecessary medical expenses and disability benefits that he was not entitled to.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
How Would You Decide? Statutes of limitation for occupational disease vs. injury. When a disease can also be a workplace injury?
Here's what Tom Robinson, J.D., writer for Lexis Nexis Workers Comp Law Center reports.
Here's What Happened
Burress worked at IBP's meatpacking plant from 1987 until 1997. His first few years of work involved significant contact with hogs and hog blood and on at least one occasion during that early time period, he cut a finger while working with the hogs.
During his last eight years of work he worked in IBP's trolley room, where he did not have much contact with hogs, but occasionally did come into contact with hog blood. During this latter period, Burress indicated he cut his finger and elbow and sustained a superficial puncture wound to his face. Six years after leaving IBP, Burress was diagnosed with brucellosis with osteomyelitis. He alerted IBP of a potential workers' compensation claim by letter. On January 3, 2005, Burress filed a claim alleging injury through contact with blood products and tissue from slaughtered hogs.
IBP contended the injury was, if anything, an occupational disease and that Burress' recovery was barred by Iowa Code § 85A.12, which generally required a claim to be filed no later than one year after Burress' last exposure. The deputy commissioner disagreed with IBP, finding that Burress contracted brucellosis as a result of trauma, that Burress did not become aware of his condition until early December 2004, and that his petition for benefits was filed within two years, as prescribed by chapter 85.
The commissioner affirmed and IBP petitioned for review with the district court. That court reversed the agency's decision, finding that Burress suffered from an occupational disease, not an injury, and that Burress had failed to file his petition within one year after the last exposure. After an intermediate appeal to the state court of appeals, the case reached the state supreme court.
Here's What the Court Decided
In IBP, Inc. v. Burress, 2010 Iowa Sup. LEXIS 18 (Mar. 5, 2010), the Supreme Court of Iowa held there was sufficient evidence to support the commissioner's finding that Burress had sustained an injury and not an occupational disease. Accordingly, his claim was not barred by the one-year statute of limitations related to occupational diseases. Acknowledging that brucellosis was included within the list of compensable occupational diseases, the high court stated that the disease could, nevertheless, be an "injury" under appropriate circumstances, such as when the germs gained entrance through a scratch or through unexpected or abnormal exposure to infection [quoting Larson's Workers' Compensation Law]. (workersxzcompxzkit)
The court also observed that in Perkins v. HEA of Iowa, Inc., 651 N.W.2d 40, 43 (Iowa 2002), it had determined that an employee's hepatitis C was an injury because her "infection was linked to a sudden, specific incident of exposure." [Id. at 43]. That Burress could not point to a specific incident did not bar recovery, indicated the court, since the likelihood was that his condition had been contracted through contact with the hog blood at a time when Burress had some open wound. The court also held, however, that there was an issue as to whether Burress had provided notice to IBP of his claim within 90 days of discovery. The case was remanded for such a determination.
See generally Larson's Workers' Compensation Law, §§ 51.01, 51.02, 51.03.
Tom Robinson, J.D. is the primary upkeep writer for Larson's Workers' Compensation Law (LexisNexis) and Larson's Workers' Compensation, Desk Edition (LexisNexis). He is a contributing writer for California Compensation Cases (LexisNexis) and Benefits Review Board – Longshore Reporter(LexisNexis), and is a contributing author to New York Workers' Compensation Handbook(LexisNexis). Robinson is an authority in the area of workers' compensation and we are happy to have him as a Guest Contributor to Workers' Comp Kit Blog. Tom can be reached at: compwriter@gmail.com. http://law.lexisnexis.com/practiceareas/Workers-Compensation
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
Employers whose injury and illness rates are considerably higher than the national average are being surveyed by the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) to collect workplace injury and illness data. Information gathered helps identify workplaces needing to improve their workplace safety programs.
OSHA sent a letter to about 15,000 workplaces with the highest numbers of injuries and illnesses resulting in days away from work, restricted work activities or job transfers, known as the DARTrate.
"Receipt of this letter means workers in that particular establishment are being injured at a higher rate than in most other businesses of its kind in the country," said Assistant Secretary of Labor for OSHA Dr. David Michaels. "Employers whose businesses have injury and illness rates this high need to take immediate steps to protect their workers."
Employers receiving the letters also receive copies of their injury and illness data, along with a list of the most frequently cited OSHA standards for their specific industry. The letter offered assistance in helping to reduce workplace injuries and illnesses by suggesting, among other things, the use of OSHA's free safety and health consultation services for small businesses provided through the states. (workersxzcompxzkit)
OSHA identified businesses with the nation's highest rates of workplace injuries and illnesses through employer-reported data from a 2009 survey of about 100,000 worksites. (This survey collected injury and illness data for calendar year 2008.) Workplaces receiving notifications had DART rates more than twice the national average among all U.S. workplaces.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
A test case asking whether a federal contractor's employees in "low risk" positions can be mandated to undergo extensive background checks will be heard by the United States Supreme Court.
The case involves workers at the Jet Propulsion Library, located on federally owned land but operated by the California Institute of Technology (Caltech) pursuant to a contract with the National Aeronautics and Space Administration (NASA).
Three years ago, NASA amended its contract with Caltech to require each employee at the laboratory to undergo a National Agency Check with Inquiries (NACI), the same background investigation required of government civil service employees.
As part of the investigation, an "Investigative Request for Personal Information" (Form 42), is sent to every applicant's references, employers, and landlords. The form ask questions about whether the recipient has "any reason to question [the applicant's] honesty or trustworthiness" or has "any adverse information about [the applicant's] employment, residence, or activities" concerning "violations of law," "financial integrity," "abuse of alcohol and/or drugs," "mental or emotional stability," "general behavior or conduct," or "other matters."
Under the new policy, the employees are mandated to pass the background check in order to receive admittance to the lab. Caltech also stated employees who failed to clear the background check are considered to have voluntarily resigned.
The lab's employees objected to the background check, arguing that since they work in low-risk positions (that is, they have no access to classified information), the background checks are an invasion into their "informational privacy" under the United States Constitution.
The Supreme Court will review:
1. Whether the government violates a federal contract employee's constitutional right to informational privacy when it asks in the course of a background investigation whether the employee has received counseling or treatment for illegal drug use that has occurred within the past year, and the employee's response is used only for employment purposes and is protected under the Privacy Act, 5 U.S.C. 552a. (workersxzcompxzkit)
2. Whether the government violates a federal contract employee's constitutional right to informational privacy when it asks the employee's designated references for any adverse information that may have a bearing on the employee's suitability for employment at a federal facility, the reference's response is used only for employment purposes, and the information obtained is protected under the Privacy Act, 5 U.S.C. 552a.
A deadline for the Court's decision is not known at this time.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
An Ohio-based petroleum refinery has paid $969,182 in back wages to 173 workers after the Department of Labor accused the company of violating the Fair Labor Standards Act’s overtime rules after switching the employees to a 12-hour shift.
The department alleged the violations began when the Husky Energy Corp. changed from 8-hour shifts to 12-hour shifts for some of its workers, resulting in alternating workweeks of 60 and 24 hours. According to the department, the company allegedly established an “adjusted” rate whereby all these hours were compensated at the same rate, instead of paying time and one-half an employee’s regular rate for the resulting overtime hours.
The company was also accused of failing to include a shift differential in overtime pay calculations. An employer is not required by law to provide a shift differential, but if one is paid, then it must be included as part of the employee’s regular rate of pay for purposes of computing overtime. (workersxzcompxzkit)
Husky Energy Corp. agreed to pay the $969,182 in back wages to its employees and to establish bona fide rates upon which time and one-half for overtime hours would be calculated in the future. The company also agreed to include the shift differentials in the regular rate for purposes of calculating overtime in the future.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
Fraud Prevention Program Scores a Hit!
A
program targeting workers’ compensation insurance fraud resulted in 154 arrests in 2009 and $16.6 million in recoveries and estimated savings as reported by the New York State Insurance Fund (NYIF).
Since 1995, NYSIF cases accounted for 1,382 insurance fraud arrests, along with recoveries and estimated savings of $183.1 million. During that time, NYSIF established a national reputation for fighting workers’ comp fraud by working cooperatively with the New York State Insurance Department Frauds Bureau, the Workers’ Compensation Board Inspector General’s Office, local, state and federal law enforcement authorities, and district attorneys in many jurisdictions in and out of state.
“NYSIF has long been a leader in the fight against workers’ compensation fraud and our results this year again show we continue to lead the fight,” NYSIF Chief Deputy Director Francine James said.
“That’s a commitment we make as the state’s largest workers’ compensation insurance company to the people and all businesses of the state of New York . Workers’ compensation fraud is not a victimless crime, it is a felony and we vow to pursue it as such.”
Among anti-fraud special investigation units, NYSIF DCI ranks near the top nationally in annual arrests, and in cumulative fraud savings. In addition, NYSIF auditors have established a standard among insurance carriers for conducting premium audits that discourage improper payroll reporting and worker misclassification.
Recent significant cases resulting in millions of dollars in savings to NYISF have included claimants who receive benefits while operating businesses or remain employed in other capacities, the most prevalent type of workers’ comp fraud. (workersxzcompxzkit)
Other cases involve premium fraud, the most costly type, in construction, asbestos abatement and other contracting, including investigations in conjunction with the U.S. Department of Labor, the U.S. Postal Inspector, and local labor racketeering bureaus. Still other cases involve fraudulent provider billing.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: Claim Handling Strategies
Click Here:
http://www.workerscompkit.com/gallagher/podcast/ Claim_Handling_Strategies/index.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.
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