Quote of the day
"So these people who made $16,000 or $17,000 a year are now liable for a $2.2 million judgment. They're not sophisticated people, they're not educated."
Gregory Jachts, a Paterson, N.J., workers' compensation court-appointed attorney who represents former workers sued by their former employer for allegedly making false injury claims
Report Targets ‘Big Scam’ in Windy City
Illinois and federal agencies are investigating allegations that Chicago-area construction companies deliberately misclassify employees as independent contractors in order to avoid financial obligations that include workers’ compensation. A University of Missouri-Kansas City report finds that on average in Illinois, $95.9 million of workers’ comp premiums are avoided annually for misclassified workers, with the construction industry underpaying $23.2 million. By Francine Knowles, Chicago Sun-Times [With Photo] Go to the Full Story…
Default Judgment in RICO Suit Shocks Garden State Workers
A federal judge signs a default judgment against more than 80 laid-off New Jersey workers, finding them jointly liable to repay $2.26 million of their former employer’s attorneys’ fees, costs, compensatory damages, and workers’ compensation awards. The company’s suit, filed under the federal Racketeer Influenced and Corrupt Organizations Act, accused the workers of conspiring to defraud by making false injury claims. By Greg Saitz, Newark Star-Ledger
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Bloomberg Asks Congress to Reopen Sept. 11 Compensation Fund
New York City Mayor Michael Bloomberg asks Congress to reopen the compensation fund for Sept. 11 terrorism victims, saying the city could otherwise lose billions of dollars to lawsuits. Health experts and advocates say thousands of fire, police, recovery and construction personnel may suffer lifelong illnesses from toxic dust exposure. By AP via Newsday
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New Administrator Named at Ohio BWC
Ohio Gov. Ted Strickland names American Electric Power executive Marsha Ryan, 56, administrator of the troubled Ohio Bureau of Workers’ Compensation. By Darrel Rowland, Columbus Dispatch
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Oklahoma Officials Penalize 11 AIG Companies
The Oklahoma Insurance Department fines 11 companies controlled by American International Group Inc. for allegedly failing to provide accurate workers’ compensation data needed to calculate premiums between 1998 and 2004. Two of the companies fined are among the state’s largest workers’ comp insurers. By AP via KSWO-TW (Lawton, Okla.)
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Show Me State Shows Employers the Money
The Missouri Department of Insurance secures nearly $2.5 million in refunds from insurers to compensate more than 21,000 workers’ compensation policyholders. It’s the result of a National Council on Compensation Insurance rate-making error: the system omitted historical payroll information in roughly 90 classification codes between 2003 and 2005. Springfield Business Journal
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Court Gives Blessing for Aussie Firms to Opt-Out of State Schemes
Large Australia companies win a court battle allowing them to opt out of compulsory state workers’ compensation schemes, after a court dismisses a challenge led by the state of Victoria to the federal government’s Comcare scheme. ABC.net (Australia)
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