Articles Posted in Workers’ Compensation

Beacon Power has begun construction of a $53 million electricity processing plant in the Humboldt Industrial Park North.

According to an article on the RepublicanHerald.com, the plant will use flywheel energy storage technology that will cost less because it uses less energy to stabilize the electrical grid. This could save consumers millions of dollars in electricity costs.

The president of CAN DO Inc., Kevin O’Donnell, said, “The project is an energy security technology that will provide clean electricity storage within the PJM grid and strengthen grid stability for the manufacturing sector.”

This week, American Express announced that it would be cutting 5,400 jobs to reduce its headcount, according to an article on CCNMoney.com.

Most of the jobs that are cut will be from its travel business. By year’s end, the company’s workforce should be reduced by 4% to 6%.

In the article, CEO Kenneth Chenault said, “Against the backdrop of an uneven economic recovery, these restructuring initiatives are designed to make American Express more nimble, more efficient and more effective in using our resources in drive growth.”

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In late summer 2011, we blogged about an incident at a Hershey Co. distribution center in Palmyra, when a large group of foreign exchange students walked off their jobs for being overworked and underpaid. Over a year later, their protest paid off: in later 2012, federal officials said $213,000 in back wages will be paid to the over 1,000 foreign students, as well as $143,000 in fines.

According to an article on PennLive.com, the back wages and penalties are part of a settlement involving Exel inc., SHS Staffing Solutions, and the Council for Educational Travel-USA (CET-USA), which matched foreign students with jobs as part of an educational exchange program. Exel ran the Palmyra distribution center under a contract with The Hershey Co., which has said it was not directly involved with the students’ wages and working conditions.

Students said they were overworked, underpaid, and charged excessive rent by the host organization — terms and conditions that were very different than what they signed up for. One student said she was paid $8.35 an hour and charged $400 a month for rent, which was deducted from her paycheck. She also said she had little opportunity to visit American cities and learn about the country, as she had expected.

The walkout was organized by the National Guest Worker Alliance and led to protests against The Hershey Co. It led to an investigation by the U.S. Department of Labor.

The SHS Group, under contract with Exel, hired the students and placed them at the Palmyra site. SHS was penalized for repeat violations of the federal Fair Labor Standards Act. Exel, SHS, and CETUSA shared the cost of the back wages. The civil penalties were assessed to Exel.

In addition to the settlement, Exel must implement measures to prevent labor- and safety-related violations at all of Exel’s facilities across the United States. They must comply with minimum wage and overtime laws, maintain a hotline for workers who believe their rights were violated, and maintain a log of all labor law violations related to the company for the next three years. They must also implement a hearing protection program at the Palmyra facility as well as address noise at all its facilities.

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Lawmakers are trying again to pass changes to a Pennsylvania state workers’ comp law that would double the required time injured workers must use an employer-approved doctor.

Those behind the House Bill 808 say the change will reduce fraud and save companies on benefits payouts. But according to an article on CentralPennBusiness.com, unions and legistislative Democrats oppose the bill, and have been doing so since 2003-2004.

The bill would change the time that injured workers must use employer-selected medical experts for treatment from 90 days to 180 days, known as the “captive period”. It would have injured workers continue treatments that show progress, instead of allowing them to leave and use their own doctors after 90 days. Proponents say that expanding the captive period would reduce lost productivity and prevent the misuse of workers’ comp by finding doctors who unnecessarily keep an employee on benefits, which increases medical costs.

Physical therapy is a medical service that uses therapeutic exercise to help a person regain or improve his or her normal body movements. So when an employee is injured on the job and that injury results in damage to the musculoskeletal parts of the body, it’s not uncommon for the treating physician to send the employee to a physical therapist.

Treating physicians usually have a working relationship with local physical therapists. The treating physician can often recommend a physical therapist who can best handle the employee’s type of injury. The physician usually prescribes the amount of physical therapy treatments needed. The therapy is often conducted in an out-patient setting.

Workers’ comp claims often involve injuries to muscles, tendons, ligaments, bones, and joints. These types of injuries can often be handled by a physical therapist. There are physical therapists that also specialize in skin problems resulting from burns or wounds, nerve injuries, as well as other breathing and lung problems. The physical therapist is focused on helping the employee to regain prior functioning levels. The therapy may also help relieve pain associated with the injured body part.

Today the Occupational Safety and Health Administration (OSHA) released a new interactive tool that is aimed at helping to protect workers who are exposed to cadmium.

A press release from OSHA describes cadmium as a soft, silver-white metal used in many industries, including metal machining, plastics, ceramics, painting, and welding operations. Workers can also be exposed to cadmium through smelting and refining of metals, as well as air in industrial plants that manufacture batteries, coatings, or plastics.

According to the Agency for Toxic Susbstances and Disease Registry, about 300,000 workers in the U.S. are exposed to cadmium each year. Short-term exposure includes weakness, fever, headache, chills, sweating, and muscular pain. Long-term exposure can lead to cadmium poisoning which can cause kidney damage and cancer of the lung or prostate. It is also thought that cadmium can cause pulmonary emphysema and bone disease.

This week, the Citizen’s Voice reported that the Luzerne County Controller was questioning workers’ compensation settlements made to county workers this year. Those settlements have totalled $277,000.

One settlement that the controller questioned was for $100,000. It was given to a sheriff’s office employee.

The county’s controller feels that the settlements aren’t valid without approval from county council. The county’s home-rule charter, which began on Jan. 2 of this year, gives council the authority to approve recommendations to initiate and settle litigation.

Citigroup, the third-largest bank in the U.S., announced this week that it would cut 11,000 jobs, nearly 4 percent of its workforce.

According to an article in the Wall Street Journal, this story is far too familiar to the banking industry, which is still recovering from the 2008 financial crisis.

Most of the cuts (about 6,200) will come from Citi’s consumer banking unit, which handles functions such as branches and checking accounts. The company will also sell or scale back its consumer operations in Pakistan, Paraguay, Romania, Turkey, and Uruguay, so that it can focus on 150 cities around the world “that have the highest growth potential in consumer banking.” Another 1,900 job cuts will take place in the institutional clients group, which includes investment banking.

Workers seen using inadequately guarded saws and grinders at ProMaxima Manufacturing Ltd in Houston, TX prompted an inspection by OSHA’s Houston South Area Office. That inspection resulted in proposed penalties against the company, totaling $47,700.

According to a press release on OSHA.org, ProMaxima manufactures fitness equipment for various federal agencies. It employes about 200 workers.

Nine serious violations were found, including failing to properly guard machinery such as saws and grinders, failing to properly store gas cylinders, failing to keep electrical equipment free and clear of obstacles, and failing to train and certify forklift operators. Serious violations occur when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

Mark Briggs, director of OHSA’s Houston South office, said, “The employer exposed workers to amputations as well as fire and electrical hazards. It is the responsibililty of the employer to provide a safe and healthful environment for workers.”

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