Pennsylvania Workers' Compensation Lawyers Blog

According to an article on the OCRegister.com, a Murietta, CA roofing contractor pleaded guilty to 16 felony counts, including perjury, filing false documents, and making false statements, for failing to provide workers' comp insurance for an employee who injured himself.

The article reported that, according to prosecutors, the roofing contractor purchased the minimum workers' compensation insurance policy for his company, then reported that he had no employees. To hide their employment, he paid his workers in cash and submitted inaccurate payrolls reports.

When an employee filed a workers' compensation claim as a result of a fall from a roof, the roofing contractor denied that the man worked for him. As a result, the employee was denied benefits.

The maximum sentence for the convictions is 21 years and eight months in prison. According to prosecutors, the roofing contractor is expected to be sentenced to three years in state prison.

Continue reading "California Roofing Contractor Found Guilty of Workers' Comp Fraud" »

A Pennsylvania appeals court ruled that Kraft Foods Inc. could not reduce a workers' compensation claimant's partial disability benefits because it did not provide any evidence of actual job openings that were available to the claimant.

In February 2004, the claimant injured his right knee while employed as a utility worker for Kraft. In 2007, Kraft sought to reduce the claimant's benefits by saying that "work was generally available." The appeals court did not accept Kraft's argument that under Pennsylvania law it could use testimony from a rehab counselor that general, entry-level jobs were available to the claimant. Instead, the appeals board ruled that Kraft needed to show that "existing actual jobs are open and available" to the claimant.

Continue reading "PA Court Rules Kraft Can't Reduce Workers' WC Benefits" »

Earlier this month, the Pennsylvania Department of Labor & Industry (L & I) announced that the statewide average weekly wage for injuries occurring on and after Jan. 1, 2010 would be $845 per week. The average weekly wage for 2009 was $836.

According to the L & I website, under the Workers' Compensation Act, injured workers are entitled to wage-loss benefits equal to two-thirds of their weekly wage for a work-related injury.

How much money you will receive while on workers' compensation depends on:

• Whether you are on total or partial disability
• How long you have been employed by your employer
• Whether you were working for more than one employer at the time of your injury
• How much you regularly earn from your employer

Continue reading "Pennsylvania Announces Statewide Average Weekly Wage for Injuries for 2010" »

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.

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.

Continue reading "Two Pennsylvania Employees Receive Large Payoff for Age Discrimination Case" »

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."

Continue reading "Man Fired after Filing Workers' Comp Claim" »

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 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" »

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.

Continue reading "FedEx Ground Drivers Seek to Reclassify Their Jobs to Qualify for Workers' Comp Benefits" »

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 Michael J. O'Connor & Associates was asked to give a presentation during the USW's annual workers' compensation seminar.

The job of a workers' compensation claims investigator is to discredit the injured worker's claim for disability compensation. Under the laws of Pennsylvania, an insurance company may legally hire an investigator to perform surveillance on an injured worker. The surveillance is conducted in an attempt to catch the injured worker engaging in any physical activity that may be outside of his or her work restrictions.

Although investigators may not commit trespass, such as taking pictures of the injured worker inside his or her home, they may follow the injured worker, speak with neighbors, and take videotapes of the injured worker conducting normal activities in public. More often than not, these methods of surveillance can cost the investigator and the insurance company a lot of time and money.

But with the emergence of social networking sites, like Facebook, MySpace, LinkedIn, and Twitter, the job of the claims investigator has now been made even easier.

"A lot of people post things they don't expect the insurance carrier is going to be looking at," said Frank Pinder, president of the fraud and special investigations unit of GlobalOptions Group, an Orlando, Florida-based insurance claims investigation service. In an article by Roberto Ceniceros on Workforce.com, Pinder added, "Their geology hobbies, reunions, bowling, the leagues they are involved in, fishing tournaments, hunting clubs...pastimes, organizations. Then you can further mine that for information [counter to] their claim."

By searching for a claimant's profile on sites like Facebook or MySpace, investigators can uncover a myriad of self-incriminating information, such as dates of sporting events in which the claimant is participating. Social networking sites can also contain time-stamped photos and videos showing claimants involved in physical activities that could be outside the level of disability that the injured worker is claiming.

"It just amazes us how much information people provide," said Howard Schneider, president of Schneider Associates, a private investigative agency in Thousand Oaks, California.

Injured workers should be aware not only that their activities could be videotaped by an investigator, but also that any information they provide online can be easily accessible to the general public. It may not only be family and friends who are accessing their profiles, but insurance claims investigators, as well. This type of evidence may be used to challenge the injured worker's medical testimony or to try to convince a workers' compensation Judge that the injured worker is not as disabled as he or she is asking the Judge to believe.

Continue reading "Workers' Compensation Investigators Use Social Networking Sites to Nab Fraudulent Claimants" »

As the nation braces for the coming H1N1 (swine flu) pandemic, the federal government has issued warnings to the general public, including the following tips from flu.gov:

• Cover your nose and mouth with a tissue when you cough or sneeze.
• Wash your hands often with soap and water.
• Avoid touching your eyes, nose, or mouth. Germs spread this way.

In an article on CNNMoney.com, the National Partnership for Women and Families, a Washington, D.C.-based advocacy group, reported that 48% of the U.S. private-sector workforce can't take paid leave without advance notice. However, with the Centers for Disease Control (CDC) recommending that people infected with the flu stay home for at least 24 hours after fever symptoms have disappeared, employees with limited or no sick leave are caught in the middle. If they go to work sick, they risk infecting others and spreading the flu; if they stay home to recover, they risk losing their jobs.

Even healthcare facilities are caught in the conflict. In an article on medicalnewstoday.com, the National Nurses Organizing Committee--Arizona reported that many registered nurses in surveyed facilities are not guaranteed sick time in case of swine flu infection. Also, many nurses are threatened with discipline if they fail to come to work.

According to CNNMoney.com, unions and worker advocates have stepped up efforts for local laws that require businesses to offer paid sick leave. There are now 15 states and cities that have paid sick leave bills in the works.

"This is definitely pressing because of all the projections of how the swine flu and the regular flu season will be affecting people," said Shula Warren, chief of staff for New York City council member Gale Brewer. Brewer is responsible for introducing local legislation for a sick-leave law that would also allow New York workers to use sick time to care not only for ill children, but also for kids whose schools are closed because of swine flu fears.

If Congress takes up the Healthy Families Act, initially spearheaded by the late Sen. Ted Kennedy and now taken up by Sen. Christopher Dodd, D-Conn., it would provide up to seven paid sick days a year at all companies with 15 or more employees.

For now, the CDC recommends that employers encourage employees with flu-like symptoms or illness to stay home, operate with reduced staffing, and have employees who are at high risk of serious medical complications from infection work from home.

Continue reading "Pennsylvania Workers Can Face Issues with Paid Sick Time During the Flu Season" »