Pennsylvania Workers' Compensation Lawyers Blog

This Friday (April 19), remember to wear blue and green in honor of the second annual National Donate Life Blue and Green Day in support of organ and tissue donation and in celebration of National Donate Life Month.

Donate Life America is a non-profit alliance of national organizations across the U.S. with a mission to increase the number of designated organ, eye, and tissue donors in order to save and heal lives. They are encouraging the public to wear blue and green on this day, to bring attention to the need for organ and tissue donors.

According to DonorRecovery.org, more than 117,000 people are on organ transplant lists.

The law offices of Michael J. O'Connor & Associates will be celebrating National Donate Life Day and we encourage you to wear blue and green in support of organ and tissue donation.

On Saturday, April 13, staff from Michael J. O'Connor & Associates laced up their running shoes to participate in the first ever Yuengling Light Lager Jogger 5K run/walk in Pottsville. Sponsored by America's oldest brewery, Yuengling, the run/walk attracted 2,500 participants as well as hundreds of spectators. But it wasn't just a chance to run or walk the race route -- part of the proceeds from the participant registrations were donated to Operation Gratitude, an organization that sends care packages with snacks, entertainment items, and personal letters of appreciation addressed to individually named U.S service members deployed in hostile regions, as well as their children left behind, and to Wounded Warriors, veterans, and first responders. After the race, letter writing stations were set up so participants and spectators could write notes to be included in the care packages. It was a great community event that we were proud to take part in!

Pictured above from left to right: Mary Jo Link, Lorianne Link, Kathy Wagner, Bridget Burke, and Peggy Kellar

Pictured above from left to right: Samantha Cody, Kathy Wagner, Lorianne Link, and Bridget Burke

Our thoughts and prayers go out to all those affected by today's tragic events at the Boston Marathon.

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.

To reduce the overall cost of workers' comp claims, it's common practice for employers and their service providers to control the amounts spent on prescriptions by encouraging employees and doctors to use generics when available. Reports show that in 2012, 76% of drugs for workers' comp claimants were generics, while there is an 80% price difference between generics and name brand drugs.

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 Department of Housing and Urban Development begins it first of seven furlough days on May 24. The agency is responsible for maintaining public housing and distributing housing vouchers.

Some furloughs have been pushed back to lessen the workforce cuts for other groups, such as the military and federal food inspectors.

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."

Nonfarm jobs in the county stayed the same at 50,700 over the month while over the year, jobs were up 1,200, an increase of 2.4 percent. Employment gains over the year were split between goods-producing and service-producing industries. Mining, logging, and construction increased by 200 jobs and manufacturing increased by 200 jobs. Trade, transportation, and utilities jobs increased by 400, warehousing and utilities jobs increased by 200 and trade jobs increased by 200.

Zellers also pointed out that, "From March going forward, some sectors we would naturally expect to pick up, like construction and leisure and hospitality jobs. If not next month, then the month after."

Funding is still available for the Low Income Home Energy Assistance Program (LIHEAP), so the federal program's deadline has been extended to April 26.

According to an article on the RepublicanHerald.com, LIHEAP provides financial assistance each year to low-income Pennsylvania families that meet its criteria. Families can use those funds to pay heating bills through a crisis exception program and a regular crisis program.

According to the Department of Public Welfare, the crisis exception program provides money if a heat source has been shut off or if a household is almost out of fuel. The regular crisis program provides funds in an emergency situation, such as lack of fuel, termination of utility service, danger of being without fuel and having a less than 15-day supply, having utility service being shut off within a 60-day time frame, and broken heating equipment or leaking lines.

To apply for LIHEAP, visit www.compass.state.pa.us or a county assistance office or local utility company.

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."

Workers' comp provides for the cost of medical care and rehabilitation for workers who are injured on the job, as well as lost wages and death benefits for dependents of employees killed in work-related accidents.

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.

Continue reading "Schuylkill County's Unemployment Rate Hits 10.1 Percent " »

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."

Tobyhanna Army Depot is the U.S. military's primary facility for the repair and maintenance of communications and electronics equipment. It is a major component of the region's economy, ranking as one of the largest employers in Lackawanna, Luzerne, Monroe, and Pike counties.

There is concern on the furlough's impact on the local economy, as well. Teri Ooms, executive director for the Institute for Public Policy and Economic Development said in the article, "These families are living in a time when prices of the basic necessities have climbed and now they are hit with a large loss of income. Beyond those households, this will have a ripple effect -- direct and induced economic impacts -- as people making less spend less on everything from retain, to services and entertainment."

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.

Continue reading "Jefferson County Company Cited after Fatal Accident at Gas Well Site " »

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.

In the article, Casey said the program is valuable and produces good results for the individuals involved as well as the economy. He is calling for the inspector general to review the program.

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.

Continue reading "Pennsylvania Company Cited by OSHA for Worker Crushed by Pavement Roller " »

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.

Continue reading "Fire at West Virginia Gas Well Injured Workers " »

An article in the RepublicanHerald this week reported that Tobyhanna Army Depot could have its budget cut by more than one-third, or more than $300 million in cuts, if automatic spending reductions happen in March. It is part of $500 billion to be cut from defense spending over the next 10 years.

But in the article, Army spokesman Dove Schwartz said that the cuts to Tobyhanna are more imminent, "That will happen by the end of the fiscal year. That's not nine or 10 years down the road."

Tobyhanna is one of the area's largest employers with about 5,400 workers living in bother Lackawanna and Luzerne Counties. It's the military's primary facility for repair and maintenance of communications and electronics equipment. The depot's annual operating budget is about $905 million, so the automatic cut would mean about a 34 percent reduction in funding. It could mean a loss of 1,570 jobs.

President of the Greater Scranton Chamber of Commerce, Austin Burke, said, "This is a matter of great concern. Tobyhanna is such an important economic engine for all of Northeastern Pennsylvania."

The cuts could take place unless Congress acts to prevent it.

Such massive cuts to a federal operation such at Tobyhanna Art Depot can create a sense of uncertainty for those of us in the private sector. We'll watch to see if Congress is able to prevent the cuts.