Articles Posted in Workers’ Compensation

A ruling from the U.S. Supreme Court over generic drug deals could impact the cost of workers’ comp for employers and health insurance coverage for employees.

According to an article on BusinessInsurance.com, the high court is ruling on a case that involves whether or not it is legal for brand-name drug manufacturers to make payments to generic competitors for keeping cheapter medications off the market temporarily. The payments come from patent dispute settlements.

In March, the Federal Trade Commission argued before the Supreme Court that such payments violate antitrust laws and hurt consumers. On the flip side, the National Association of Manufacturers argued that a ruling favoring the FTC would discourage companies from doing expensive research and could damage the U.S. economy.

Many people thought the federal spending cuts that began on March 1 would mean interruption of government services for the public. Although there have been delays and cutbacks on furloughs, experts say the disruption is slowly but surely on its way.

According to an article on CNN.com, federal courts will be the first to feel the impact. Those charged with federal crimes may see delays in their cases. One judge estimated that nationwide 2,000 judiciary workers would be laid off or furloughed this year.

Beginning in late April, almost 47,000 Federal Aviation Administration workers will be placed on unpaid leave for one day in each two-week pay period for a total of 11 days. That could mean that travelers flying domestic airlines might start noticing delayed flights with fewer air traffic controllers at work. Doug Church, spokesman for the National Air Traffic Controllers Association, is quoted in the article as saying, “Everyone will continue to do their jobs as best they can. But we’re not optimistic about current levels of efficiency being maintained.”

The Pennsylvania Department of Labor & Industry released its monthly report this week with good news for Schuylkill County: the jobless rate dropped one full percentage point to 9.1 in February.

According to an article on the RepublicanHerald.com, the state’s rate decreased 0.1 of a point to 8.1 percent while the national rate was down 0.2 of a point to 7.7 percent for the month of February.

In the article, Steven Zellers, industry and business analyst with Labor & Industry said, “A majority of the actions over the past several months can be explained by regular seasonality or people rejoining the labor force.”

The Pennsylvania Department of Insurance announced some good news this week for PA employers: a reduction in the workers’ compensation rate.

According to a press release from the Department of Insurance, an overall decrease of 4.01 percent goes into effect April 1. The cut could result in a projected overall premium reduction of up to $110 million for Pennsylvania employers. This is based on employer risk classifications and could vary according to payroll, claims experience, as well as other factors, so no all employers will see a decrease.

But Insurance Commissioner Mike Consedine said, “We are very pleased with the rate reduction which is the second workers’ compensation decrease in a row. The lower rate will benefit Pennsylvania employers with ongoing cost savings.”

For the month of January, Schuylkill County’s unemployment rate hit doubles digits, increasing to 10.1 percent.

According to an article on the RepublicanHerald.com, the state’s rate increased by 0.3 of a percentage point, bringing it to 8.2 percent. The nation’s rate increased by 0.1 of a point to 7.9 percent, according to a state Department of Labor & Industry release.

According to the article, total nonfarm jobs in the county decreased by 900 in January. But over the year, Schuylkill County was up 1,300 jobs. Mining, logging, and construction jobs were down due to the cold weather. Also, January brought an end to the holiday shopping season. Retail, transportation, warehousing, and utility jobs were down over the month.

Across the state, Schuylkill County tied with Northumberland County for the 15th highest unemployment rate.

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Last week, Tobyhanna Army Depot in Monroe County announced that $309 million of budget cuts resulting from the federal budget sequestration will mean that 5,136 civilian employees will be furloughed.

According to an article on the RepublicanHerald.com, the details of the furlough are still being worked out, but employees will be required to take 22 non-consecutive furlough days between late April and Sept. 30 unless Washington is able to resolve the federal budget impasse.

Despite the news, depot spokeswoman Jacqueline Boucher is quoted in the article as saying, “Everyone is concerned. But everyone is resolved to continue to support the warfighter.”

There’s been much discussion and debate here in Pennsylvania regarding the safety and dangers of fracking, the term used to describe the process of making fractures in rock formations to release natural gas as an energy source. Some of those safety concerns came to light this week when the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) cited natural gas producer J.R. Resources after a worker died from injuries sustained during a flash fire at the company’s gas well site.

According to a press release from OSHA, the accident occurred in August 2012. The worker who was killed was not provided or required to wear flame-resistant clothing, considered a serious violation by OSHA standards.

The company, which operates one well at its Ringgold facility in Jefferson County, received seven serious violations from OSHA including failing to require and provide flame-resistant clothing be worn when working around natural gas; failing to provide fall protection from stairs on brine tanks; and failing to properly label tanks and prevent workers from riding in the bucket of a backhoe. Serious violations are issued when there is substantial probability that death or serious physical harm could result and the employers knew or should have known of the hazard.
The company was also cited for one other-than-serious violation for failing to report the fatality to OSHA within 8 hours, as required by law.

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An article on the RepublicanHerald.com has reported the U.S. Sen. Bob Casey is looking into a financial shortfall at the federal Department of Labor Job Corps that has caused an enrollment freeze.

According to the article, the Job Corps program provides job training and counseling for at-risk teens and young adults who face challenges ranging from a skills gap to homelessness. The program was started in the 1960s and has served about 100,000 clients a year. There are 4 locations in Pennsylvania, including an office near Hazleton.

Due to significant cost overruns, a Department of Labor spokesman said they had to reduce costs, including marketing, student stipends, and data center contracts. But that was not enough and the decision was made to suspend enrollment. The half-year enrollment freeze means the loss of 450 jobs and the denial of enrollment to as many as 900 potential students.

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has cited a Pennsylvania company with 18 serious safety violations after a worker was crushed by a pavement roller and killed in August 2012.

Proposed penalties for Export Fuel Co. of Export, PA total over $41,000. Violations include fall and electrical hazards, lack of machine and equipment guarding, lack of energy control procedures, the company’s failure to provide employee training in the maintenance and operation of construction vehicles and a safe exit.

Referring to the accident, Christopher Robinson, director of the OSHA Pittsburgh Area Office, said, “Training workers to recognize and address hazards is essential, and Export Fuel failed to train its workers on the operation and maintenance of the pavement roller, which ultimately led to a worker’s death.

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A West Virginia company has been cited for serious safety violations by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) after a gas well fire in August 2012 injured three workers.

The director of OSHA’s Charleston Area Office, Prentice Cline, is quoted as saying, “The hazardous nature of oil and gas drilling operations requires employers to find and fix the hazards. In this case, ensuring the use of proper personal protective equipment, such as flame-resistant clothing, could have helped in protecting the workers.”

At the time of the incident, West Virginia Public Broadcasting reported that the men were about 400 feet down when an event sparked methane gas that ignited into a flash fire. Two men were taken to a Pittsburgh area hospital. The third man was taken to a hospital in Clarksburg.

The serious safety violations found at the site include failing to ensure the use of flame-retardant clothing from flash fires and burns and to ensure workers were not exposed to fire and gas explosions from uncontrolled gas flow at the well bore. A serious violation is defined by OSHA as occurring when there is substantial probability that death or serious injury could result from a hazard which the employer knew or should have known.

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