Pennsylvania Workers' Compensation Lawyers Blog

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.

It is alleged that one of the executives committed workers' compensation premium fraud by misclassifying employee wages to their workers' compensation insurance carrier to reduce their premium. It is also alleged that two employees were dissuaded from reporting their work-related injuries to doctors. As a result, the workers were denied medical care and workers' compensation benefits.

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:

• The greatest cause of injury among older workers are falls, slips, and trips


• There are less claims for older workers in the more hazardous manufacturing and construction-related industries and occupations


• Claims are higher for older workers in the leisure and hospitality industry and food preparation

The NCCI report found that the percentage of those aged 65 and older who were looking for work was 11 percent in 1990 and increased to 17 percent in 2008. In addition to many older workers not having the funds to be able to retire, many are healthier and able to continue to remain in the workforce longer.

As older workers age, they face challenges in the workplace such as a deterioration in eyesight, hearing, strength, flexibility, reaction time, and mental processes. Employers can reduce the risk of injury to older workers by enhancing lighting where necessary, installing slip-resistant flooring, providing handrails, and installing noise dampening materials where hearing may be an issue.