Tag Archive | workers compensation
September 21, 2010  

Workers Compensation and Strip Clubs Seem To Have Something In Common

From HRMmorning.com

It’s not what you think — workers compensation cheats aren’t spending their extra dough at strip clubs. Apparently, they’re making a little extra cash on and off stage.

It appears as though one of the best places to find a workers’ compensation cheats is at the local strip clubs.

Consider the evidence:

  • A Quakertown, PA, woman was arrested and charged with two counts of insurance fraud and theft by deception after an investigation found her working as a stripper at a local gentleman’s club while receiving workers’ compensation payments for a back injury. She had received nearly $23,000 in compensation and more than $4,000 in medical expenses after she claimed to have been injured in a fall while working as a waitress at a family restaurant.
  • A Frankfort, NY, man was found working as a DJ for a strip club while collecting benefits for an accident he sustained as a painter 23 years ago. He had even denied in three written statements to the New York State Insurance Fund that he had returned to work. He was arrested on felony charges of third-degree insurance fraud and fraudulent practices after bilking more than $46,000 from the system.
  • An Islip, NY, man has been charged with insurance fraud after policefound him working as a bouncer at an all-nude club while collecting worker’s compensation payments. Officials claim he defrauded the town of Islip, where he used to work as a mechanic, out of more than $17,000.

–JK

September 8, 2010  

Not So Fun Business Injury Facts

Businesses deal with risk everyday. Whether it be liability risks such as injuries to employees or customers, or property loss risks such as fire or theft, businesses must implement risk control and risk management procedures to protect their operations. Of course, accidents happen and this is why insurance is necessary. Here are six (not so fun) injury facts courtesy of Travelers Insurance:

  1. 25,000 slip and fall accidents occur daily in the U.S., accounting for 15 percent of all workplace accidents. It is also the leading injury to people on company premises.
  2. Back injuries account for more lost work time than any other workplace injury. Often, the source is improper lifting.
  3. Fires in commercial buildings cost more than $2 billion in annual property damage and loss. Lack of, or improper maintenance of sprinkler systems plays a significant role.
  4. Musculoskeletal disorders results in over $45 billion in loss wages and productivity costs. Organized office workstations and poor ergonomic practices are contributors.
  5. Adverse weather is the leading cause of vehicle accidents and fatalities. Many company drivers don’t understand the risk or how to adjust their driving behaviors.
  6. Falls from ladders injure over 20,000 American workers annually. Some injuries result in permanent disabilities and even fatalities. Safety starts before the ladder is even mounted.

-JK

August 9, 2010  

Workers Compensation – Employee or an Independent Contractor?

One of the biggest dilemma’s concerning workers compensation insurance coverage is whether a given individual is an employee or an independent contractor. It applies to pretty much any industry. Recently, I had a discussion with a janitorial services business which uses a specialist to do floor waxing when needed. The owner told me this individual is an independent contractor. I explained to the owner that individual might be considered an employee in the eyes of an insurance carrier.

The reality is there is no definitive test to determine Employee or an Independent Contractor! It’s not a black and white issue. In many cases, it is the court of law who decides.  California Workers Compensation laws are construed liberally; in other words, in favor of the claimant. There is a presumption of employment unless the employer can prove otherwise.

There are certain basic questions which might help determine the status, however. The following circumstances can help determine the relationship between and employee versus an independent contractor:

Employee Independent Contractor
Has the right to control the manner and means of accomplishing the result desired Responsible only for the result of the work performed
Has a specific title and/or position Engaged in a distinct occupation or business
Works under the direction of a boss Is a specialist, does actual work without supervision
Uses company tools and/or equipment Supplies their own
Working hours are set by the company Has no set hours, may come and go at will
Is paid salary or by the hour Paid on a per-job basis
The person assumes they are an employee The person believes they are an independent contractor and usually has a certificate of insurance

These are just a handful of circumstances. If you have additional insight to share, please comment below!

-JK

July 9, 2010  

What If I Have Employees and No Workers Compensation Insurance?

So you’re an employer looking for ways to save money and trim your business expenses. There are plenty of areas you can probably pinch and save but let me tell you, workers compensation insurance shouldn’t be one of them and let me explain why.

The very core of workers compensation insurance is that it provides medical care for employees who are injured in the course of employment. Beyond medical care,  Workers Comp insurance provides temporary and/or permanent disability benefits, supplemental job displacement benefits or vocational rehabilitation and death benefits. Workers Comp is a trade-off between employers and employees. Employees receive prompt effective medical treatment for on-the-job injuries or illnesses no matter who is at fault and, in return, are prevented from suing employers over those injuries.

[Did I bore you yet?]

Putting the definition of workers compensation insurance aside, one might ask:

“Does an employer have to purchase workers’ compensation insurance?”

Yes. California law requires all employers to have coverage for their California employees, even if they have only one employee. (This applies in all states, not just CA. I am using CA as an example since I reside here).

What happens if an employer is unlawfully uninsured and an employee is injured?

According to the WCIRB, it is a criminal offense for an employer to be unlawfully uninsured regardless of whether or not an employee is injured. California Labor Code specifies that it is a misdemeanor punishable by either a fine of up to $10,000 or imprisonment in the county jail for up to one year, or both. In addition, the state issues penalties of up to $100,000 against illegally uninsured employers. If an employee is injured, an employer also opens himself/herself up to liability lawsuits from injured employees.

Would you be willing to take that gamble? The way I look at it, an annual insurance premium is nothing in comparison to the possible fines and penalties one might face should they decide to take that gamble. Please, find other ways to save on your business expenses, workers compensation insurance isn’t the place to do it.

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