Pennsylvania Workers' Compensation Lawyers Blog

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.

Continue reading "Employees Sue Seven Philadelphia Health Systems over Unpaid Lunch Breaks" »

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.

Continue reading "Maine Tackles the Problem of Misclassified Employees" »

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."

Continue reading "Government Report Shows Employers Reluctact to Report Workplace Injuries to Keep Workers' Comp Costs Down" »