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March 2004 State: New York Area of Interest: Fairport NY Employer Cited for Failure to Abate Citations A Fairport, N.Y., commercial printer/engraver's failure to correct previously cited occupational health hazards has resulted in an additional $93,600 in fines from the U.S. Labor Department's Occupational Safety and Health Administration (OSHA). OSHA cited Mastercraft Decorators Inc. in April 2003 for violations of OSHA's lead, cadmium, and hazard communication standards. The company was originally fined $3,000 and agreed to correct all cited hazards. OSHA began a follow-up inspection on Oct. 2, 2003, after the company failed to submit proof that the hazards had been corrected. As a result of the inspection, six "failure to abate" citations, carrying $90,000 in fines, have been issued to Mastercraft for failing to determine if employees were exposed to lead and to cadmium; failing to train employees in lead and cadmium hazards; not providing employees information and training on hazardous chemicals other than cadmium and lead in the workplace, such as lacquer thinners and printing inks; and failing to establish and implement a hazard communication program for employees exposed to hazardous chemicals. Source: Occupational Safety and Health Administration
Area of Interest: Former Workers' Compensation Claims Adjuster and Accomplices Arrested on Felony Grand Theft Charges SAN BERNARDINO COUNTY – A former workers' compensation claims adjuster and all eight of her alleged accomplices must now face felony grand theft charges after an investigation by the California Department of Insurance (CDI) Investigation Division revealed a $318,250 fraudulent check scheme. According to CDI investigators, Linda Anne Wiser, 53, of Glendale, issued 125 fraudulent claims checks to her friends and associates over a one year period while working as a claims adjuster at Chubb Insurance Company in Los Angeles. Evidence obtained from search warrants shows that most of the checks were cashed and/or deposited into bank accounts held by the alleged accomplices, and that Wiser received ‘kickbacks” for her role in the scheme. Commissioner Garamendi has worked to reform the workers' compensation system since taking office in January 2003. He has prioritized the effort to fight workers' compensation fraud and abuse and strengthened cooperation between CDI and local district attorneys. The cases are being prosecuted by the San Bernardino County District Attorney's Office, Workers' Compensation Division. Bail for each of the suspects is from $25,000 to $100,000 Source: State of California
Area of Interest: Two Arrested in Workers Comp Fraud Sweep Two men are facing workers' compensation fraud charges after insurance fraud investigators with the Department of Financial Services conducted investigations of numerous construction sites in and around Okeechobee. Investigators with the Division of Insurance Fraud, Bureau of Workers' Compensation Fraud, said James I. Vernon, 33, of Ft. Pierce, and Barry L. Cooper, 42, of Loxahatchee, were caught working without the required coverage and had no prior or current exemption. Failure to secure workers' compensation insurance is punishable by up to five years in prison and fines. Vernon was found working alone as a subcontractor for A. Lee Construction, Inc. He was charged with failure to secure workers' compensation insurance. Cooper, owner of Solid Rock Excavating, Inc., was found performing concrete work with four employees. Cooper nor his company had a valid workers' compensation insurance policy. Cooper was arrested for failure to secure workers' compensation insurance. A new online database has been developed to send automatic electronic notification to primary contractors who sign up for the service, concerning changes to a subcontractor's workers' compensation coverage status. This free service is available at www.fldfs.com/wc by clicking on the “Construction Policy Tracking Database” icon. Source: State of Florida
Area of Interest: Auburn Businessman Sentenced to Prison for Arson An Auburn businessman pled guilty to a charge of attempted arson and was sentenced to one to three years in State prison. Francis Rikhoff attempted arson in order to collect insurance monies for TNY Car Toyz, a store he managed in Auburn, Cayuga County. Mr. Rikhoff, of Syracuse, was arrested on February 13, 2003 after the store and its contents were destroyed during a suspicious fire that occurred on February 9, 2003. An investigation revealed that Mr. Rikhoff hired Paul Sztanek, a store employee, to set the fire. Mr. Sztanec was also charged with arson and agreed to cooperate with the investigation. Source: State of New York Area of Interest: OSHA's List of Low-Hazard Industries Will Remain the Same for Additional Year WASHINGTON -- The list of low-hazard industries in which small business employers are exempt from OSHA programmed safety inspections will remain the same as those in 2003, the Agency announced today. The exemption is for industries with lost workday injury (LWDI) rates below the national private sector rate of 2.6 for 2001. OSHA traditionally revises the list (Appendix A of Compliance Directive 02-00-051) every year in accordance with the latest BLS LWDI data to update the list of exempt industries in SIC codes having an LWDI rate below the national, private sector rate. However, this year the appendix cannot be updated due to changes in OSHA's recordkeeping rule that affect the manner in which BLS reports occupational injuries. Since the mid 1970s, Congress has placed language in OSHA's appropriations (funding) bill that requires OSHA to exempt small business employers (those with ten or fewer employees) that are in industries with low LWDI rates from programmed safety inspections. Due to changes in OSHA's recordkeeping rule, the LWDI rate specified in the Appropriations Act is no longer published. BLS now publishes the Days Away from Work, Restriction, or Job Transfer (DART) rate. Source: Occupational Safety and Health Administration State: California Area of Interest: Insurance Commissioner John Garamendi Unveils Workers Compensation Reform Legislative Package LOS ANGELES – Seeking to avert a political stalemate that could derail efforts to reform California's broken workers' compensation system, State Insurance Commissioner John Garamendi today unveiled his comprehensive legislative package to address the system's serious problems. The plan, which focuses on eliminating the “culture of distrust” between employers and injured workers, was presented today at a press conference at the Science Center Elementary School in Los Angeles. Commissioner Garamendi proposes that his plan serve as a bridge to span the gap between labor and business on the issue. Partial highlights of the Commissioner's plan include:
California's employers pay the highest workers' compensation premiums in the nation, while injured workers receive benefits that are below average when compared to other states. The system's problems stem from a premium price war sparked after the minimum rate law was eliminated in 1995, an incredible escalation in medical costs within the system, inefficiencies that cause excessive and costly litigation, and unchecked abuse and fraud. Last year, through his Garamendi Plan for Workers' Compensation Reform, Commissioner Garamendi helped push through legislation that is expected to save more than $5 billion annually in costs to the system. But more is needed. Source: State of California Area of Interest: OSHA Clarifies Policy on National Emergency Management Plan The Occupational Safety and Health Administration has issued its National Emergency Management Plan ( NEMP ), a new directive that clarifies the agency's policies during responses to national emergencies. The NEMP outlines procedures to ensure that personnel and logistical and operational assistance are in place to provide technical assistance and guidance within the emergency response structure for responder and recovery workers health and safety. The NEMP details OSHA's roles and responsibilities during responses to nationally significant incidents, such as those that result in a Presidential Emergency Declaration, the activation of the Federal Response Plan, or a request for assistance from the Department of Homeland Security . It also includes the primary roles and functions that the Agency's national and regional offices will assume while planning for and responding to a nationally significant incident. Each region is required to develop a Regional Emergency Management Plan (REMP) and coordinate with State plan States and Consultation Projects to ensure that roles and responsibilities for OSHA's Federal, State, and local assets in the Region are coordinated and complementary. Source: Occupational Safety and Health Administration Older News...
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