Workers' Compensation

California Company Accused of Cheating Workers

Published on: January 27, 2010 | O'Connor Law

MercuryNews.com of San Jose, CA recently reported that three executives and a foreman of a heating, ventilation, and air conditioning installation company in Hollister, CA are facing felony charges of forcing employees to return more than $170,000 in salary from public projects in Santa Clara County.

The charges against the men include taking and receiving the wages of a worker, falsely reporting wages paid on a public works payroll reporting form, violations of workers’ compensation insurance premium fraud, and making a false or fraudulent statement to discourage a worker from claiming benefits or pursuing a workers’ compensation claim.

Company executives would issue a paycheck to workers based on the hourly wage for public works projects, but then demand that the workers return about 75 percent of the paycheck. When a contractor is awarded a public works contract, the contractor must certify that they are paying employees the prevailing wage. The kickback scheme netted more than $170,000 for the company executives.

Report Finds WC Costs Are Lower for Older Injured Workers

Published on: January 21, 2010 | O'Connor Law

A recent report from the National Council on Compensation Insurance (NCCI) shows that workers’ comp costs for injured workers aged 65 and older are generally lower than younger employees because older employees are paid less.

Although workers aged 65 and older make up a small share of employment and injury and illness cases – below 5 percent – the number of workers 65 and older has increased by nearly 50 percent since the late 1980s. The report estimates that the number of older workers is likely to increase due to the state of the economy. Many older employees must postpone their retirements and continue to work in the face of depleted life savings and reduced home values.

The report highlighted the following findings:

Two Pennsylvania Employees Receive Large Payoff for Age Discrimination Case

Published on: January 6, 2010 | O'Connor Law

A federal jury awarded more than $1.9 million in pay and $3.5 million in compensation for emotional stress to two scientists who said they were let go from their jobs at a Pennsylvania chemical producer because of their age.

The men were 2 of 29 employees, all over the age of 55, who were laid off during a workforce reduction. Their lawsuit claimed that, when selecting among workers in similar positions, the company chose the oldest employees for layoff.

The jury found that the company willfully discriminated against the men, which entitled them to double back pay damages under the Age Discrimination in Employment Act.

Man Fired after Filing Workers’ Comp Claim

Published on: January 4, 2010 | O'Connor Law

We recently read a story on the StClairRecord.com about an Illinois man who claims his former employer fired him after he filed for workers’ compensation benefits. The man, who had worked at his place of employment for 10 years, filed an Illinois workers’ compensation claim after being injured on the job in May. When his physician OK’d him to return to work in October, the man said the president of the company terminated him on the same day that he returned to work. The man filed a complaint against his employer, claiming, “That said involuntary charge arose out of and in retaliation of plaintiff’s exercise of his rights under the Illinois Workers’ Compensation Act.”

Pennsylvania Workers’ Compensation Appeals Board Finds Riding to Work Location from Office in Scope of Employment

Published on: December 14, 2009 | O'Connor Law

In November, the Pennsylvania Worker’s Compensation Appeals Board overturned a ruling by a workers’ compensation judge to allow the Workers’ Compensation Act to apply to employees who are injured when they are transported by their employer from their place of business to the work site.

The Appeals Board heard the case of an employee who was transported by his employer from the employer’s office to the job site where the employee worked as a laborer. During one ride, the employee suffered head and back injuries when the vehicle he was riding in hit a bump. A workers’ compensation judge dismissed the employee’s claim petition, saying that the travel time to the job could be considered part of Pennsylvania’s Ridesharing Act. Since the Workers’ Compensation Act does not apply to a passenger participating in a ridesharing agreement, the employee would not be eligible for workers’ compensation. However, the Pennsylvania Workers’ Compensation Appeals Board reversed the decision, saying that transportation from the employer’s office to the work site was in the scope of the employee’s work. The Ridesharing Act only includes transportation of employees to and from their place of employment.

Employees Sue Seven Philadelphia Health Systems over Unpaid Lunch Breaks

Published on: December 11, 2009 | O'Connor Law

Employees of seven of Philadelphia’s largest health systems are suing their employers, claiming they were not compensated for working through unpaid lunch breaks.

The seven health systems include the University of Pennsylvania Health System, the Jefferson Health System, Temple University Health System, Mercy Health System, Albert Einstein Healthcare Network, Abington Memorial Hospital, and Aria Health System.

In an article on philly.com, Mercy Health System said in a statement, “We remain committed to fair and lawful pay practices and plan to defend ourselves vigorously in any lawsuit.”

Suits were filed in federal and state courts. According to federal and state law, hourly workers are required to be paid for all the time that they are working. The hospitals use a computerized payroll system that automatically deducts an unpaid half-hour lunch break. Hourly employees, including nurses, technicians, and janitors, who are too busy to take lunch, are not paid unless they ask for compensation.

Hospital employees choose to work through breaks because they are reluctant to leave their coworkers shorthanded. Others are afraid to push for their pay for fear of losing their jobs in this economy.

Maine Tackles the Problem of Misclassified Employees

Published on: December 4, 2009 | O'Connor Law

As the U.S. economy struggles to survive, states across the nation are looking at all available avenues for bringing in revenue. In an article on the Maine Public Broadcasting Network (www.mpbn.net), it is estimated that the state of Maine is losing more than $40 million dollars a year in tax revenues from “employee misclassification”: a way for employers to categorize employees as independent contractors so that they can avoid providing benefits and paying state and local taxes. This has prompted the creation of a state task force to address the growing problem of employee misclassification in Maine.

The task force, created by Maine Gov. John Baldacci, has heard the same stories repeated by a number of workers who have been taken advantage of by employers:

“This guy owed me so much money. We lost – I was renting a house, I have two kids. I’m on assisted living now to this day – it wouldn’t have happened if it wasn’t for people like him.”

“This is hundreds and hundreds of people that this is happening to every day. And people depend on this money. When somebody says, ‘I’m going to pay you this money’ and then they don’t, well, what are you supposed to do?”
The problem is most evident in the construction industry. The article noted that a 2005 study by Harvard University found that one in seven construction employers in Maine misclassified workers as independent contractors.

One worker was prompted by his boss to sign a release saying that he had been paid for his work – even though he had not. John Leavitt, business manager for the New England Carpenters Union in Maine, said this was just another example of how some contractors feel they can exploit their workers.

But employee misclassification affects not just the construction industry, but other types of businesses, as well. The state task force hopes to find a way to ensure all businesses are compliant with existing laws.

Government Report Shows Employers Reluctact to Report Workplace Injuries to Keep Workers’ Comp Costs Down

Published on: December 3, 2009 | O'Connor Law

Like any insurance coverage, reporting more workplace injuries can result in higher costs to employers for their workers’ compensation coverage. Now the results of a recent investigation by the Government Accounting Office (GAO) and the federal Occupational Safety and Health Administration suggest that employers are discouraged from reporting workplace injuries and illness because it could affect their workers’ compensation rates.

The report from the GAO, a nonpartisan government research organization, noted, “Several researchers and labor representatives said that because employers’ workers’ compensation premiums increase with higher injury and illness rates, employers may be reluctant to record injuries and illnesses.”

According to an article on the Insurance & Financial Advisor website (www.IFAwebnews.com), the report also found evidence that “businesses sometimes hire independent contractors to avoid the requirement to record workers’ injuries or illnesses because they are not required to record them for self-employed individuals.”

FedEx Ground Drivers Seek to Reclassify Their Jobs to Qualify for Workers’ Comp Benefits

Published on: October 22, 2009 | O'Connor Law

On Oct. 2, FedEx Ground drivers in New York, New Jersey, and Montana delivered a complaint to FedEx Ground Package System Inc. in Moon Township, PA, regarding their classification as independent drivers rather than employees.

An article in the Memphis Business Journal reported that the complaint, filed by the State of New York’s Attorney General Andrew Cuomo, stated that “more than 1,000” FedEx delivery drivers should be reclassified as employees, citing reasons including FedEx’s control of their work schedules, the strict monitoring of their delivery process, and their inability to bargain over their operating agreements.

As a result of the misclassification, drivers in New York, New Jersey, and Montana could not receive workers’ compensation benefits and could not be protected by anti-discrimination laws, labor relation laws, and other laws that protect workers.

All employers in the Commonwealth of Pennsylvania are required by law to have insurance for workers’ compensation coverage for every employee. If an employee suffers an injury in the course of employment, workers’ compensation can provide for lost wages and medical expenses.

FedEx Ground is a division of Memphis-based FedEx Corp. FedEx has until Oct. 27 to respond to the complaint.

Pennsylvania United Steel Workers Attend Workers’ Compensation Presention by O’Connor Law

Published on: October 1, 2009 | O'Connor Law

linden~1.jpg Attorney David Miller and Attorney Michael J. O’Connor gave a presentation to members of United Steel Workers (USW) District 10 on Sept. 22 at Linden Hall in Dawson, PA. The annual Workers’ Compensation seminar attracted USW union leaders from across the state. The attorneys answered questions, ranging from workers’ rights to the procedure for filing claims, for approximately 122 people who were in attendance. This is the third year that O’Connor Law was asked to give a presentation during the USW’s annual workers’ compensation seminar.