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June 2007

QUEENS RESIDENTIAL COMPLEX FACES $117,000 IN U.S. LABOR DEPARTMENT OSHA FINES AFTER EMPLOYEES EXPOSED TO ASBESTOS HAZARDS

NEW YORK -- A Queens, N.Y., residential complex's failure to protect its employees against asbestos hazards has resulted in a total of $117,000 in proposed fines from the U.S. Labor Department's Occupational Safety and Health Administration (OSHA). The corporation was cited for nine alleged violations of health and safety standards following an OSHA inspection begun Nov. 1, 2006, in response to a complaint.

The employees whose duties routinely required them to enter crawlspaces known to contain asbestos or presumed asbestos-containing material were not provided with required safeguards. Specifically, OSHA found that the employer did not monitor the employees' exposure levels; inform them of the presence, location and quantities of asbestos; institute a training program; and label asbestos-containing material.

As a result of these conditions, OSHA issued the firm, four willful citations, carrying $112,000 in proposed fines. OSHA issues a willful violation whenever an employer commits a violation with plain indifference to or intentional disregard for employee safety and health.

"There's no good reason for needlessly exposing these employees to the hazards of asbestos, particularly since the firm knew these work areas contained asbestos and also knew what it had to do to protect its employees," said Richard Mendelson, OSHA's area director for Queens and Manhattan.

The firm was also issued five serious citations and fined an additional $5,000 for failing to provide appropriate hand, face and eye protection; respirator safety deficiencies, a lack of quick-drenching eyewashes; the absence of a hazard communication program; and failing to properly label and dispose of asbestos-contaminated material. OSHA issues a serious violation when death or serious physical harm is likely to result from a hazard about which the employer know or should have known.

Continued exposure to asbestos can eventually result in serious diseases of the lungs and other organs. Detailed information on asbestos hazards, regulations and safeguards is available online at OSHA's Web site at www.osha.gov/SLTC/asbestos/index.html.

Source: www.osha.gov

FINANCIAL SERVICES COMMISSION APPROVES RULES PRESENTED BY THE OFFICE OF INSURANCE REGULATION

TALLAHASSEE, FL - The Financial Services Commission (FSC) today took further steps to implement the insurance reforms Governor Charlie Crist has called for and the House and Senate passed into law during the January special session.  Florida Insurance Commissioner Kevin McCarty presented two rules to the FSC that were adopted by unanimous vote.

"Governor Crist and the legislature promised Floridians insurance reform, and they delivered," said McCarty. "The rules adopted today will help the Office of Insurance Regulation (Office) ensure that hurricane claims are paid in a timely manner and that all future rate filings are signed by company executives swearing under oath that the information in the filings is true and accurate."

The first rule provides standard requirements for insurance companies to report to the Office in the event of a declared catastrophe.  "The point of having insurance companies report their losses promptly after a natural disaster is to ensure the Office's ability to make sure claims are paid to policyholders in a timely fashion," said McCarty. In the past, the Office has gathered this information by emergency rule, but having a standardized reporting format in a permanent rule is expected to greatly reduce the submission of incorrect company data, while also allowing the information to be processed and disseminated more quickly to policymakers and interested parties. 

The second rule adopts a standard affidavit for insurance company officers and their Chief Actuary to sign attesting to the accuracy and completeness of each rate filing.  "No longer can companies submit data to this Office requesting a rate increase and when the data is challenged, claim they were not aware of the incorrect or insufficient information," McCarty said. The form requires the Chief Actuary and either the Chief Executive Officer or Chief Financial Officer of the insurance company to swear to and sign the notarized document. 

Source: www.floir.com

ROCKLAND COUNTY, N.Y., WASTE SERVICES FIRM FACES NEARLY $80,000 IN FINES FROM U.S. LABOR DEPARTMENT’S OSHA FOR HAZARDS AT THREE LOCATIONS

TARRYTOWN, N.Y. -- The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has cited a waste services firm for a total of 41 alleged serious violations of safety and health standards at three of its Rockland County, N.Y., facilities. The waste collection and recycling company faces a total of $79,450 in proposed fines.

The citations and fines stem from six OSHA inspections begun in February of this year at three facilities. The inspections were conducted under an OSHA program which targets workplaces in industries with high instances of lost workdays, restricted duty or job transfers due to occupational injuries or illnesses.

"Our inspections identified a cross-section of safety and health hazards at these three locations that expose employees to the hazards of lacerations, amputation, electrocution, burns and injuries from being struck or crushed," said Diana Cortez, director of OSHA’s Tarrytown Area Office. "This employer must take steps to effectively address the hazards at all three locations to ensure that they are corrected and do not recur."

The bulk of the hazards were identified at one of their facilities and accounted for 34 of the serious citations and $66,400 of the total proposed fines. Cited conditions included a blocked fire exit and a too narrow exit route; unlit fire exit signs; blocked fire extinguisher access; no exposure control program or training for employees exposed to contaminated needles and sharp objects; no hazard communication program and training; no program, training and equipment to lock out machines’ power sources before performing maintenance; an uninspected overhead crane; untrained forklift operators; an inoperable eyewash station; numerous instances of unguarded machinery and electrical hazards; and hazards involving welding, tire changing equipment and a defective ladder.

Hazards at transfer station included a blocked fire extinguisher, water leaking onto and standing near an electrical transformer, an improperly wired electrical circuit and exposed live wiring. These resulted in the issuance of four serious citations with $8,100 in proposed fines.

At the recycling facility, hazards encompassed unlabeled circuit breakers, failure to remove a defective forklift from service and excess air pressure for a compressed air hose used for cleaning. Three serious citations, carrying $4,950 in proposed fines, were issued for these conditions.

Source: www.osha.gov

DOZENS ARRESTED ACROSS FIVE COUNTIES IN REGIONAL INSURANCE FRAUD BUSTS. SCHEMES EMPLOYED BY RINGS INCLUDED SETTING VEHICLES ABLAZE, FALSIFYING STEREO AND RIM RECEIPTS, AND $1.7 MILLION IN WORKERS’ COMPENSATION INSURANCE PREMIUM FRAUD

FRESNO, CA - Today California Insurance Commissioner Steve Poizner, with Fresno County District Attorney Elizabeth A. Egan, Kern County District Attorney Ed Jagels, Kings County District Attorney Ron Calhoun, Merced County District Attorney Larry Morse II, and Tulare County District Attorney Phil Cline, unveiled the results of concerted, multiple investigations into alleged auto insurance and workers' compensation insurance fraud over the past year.

Over the past few days, law enforcement officers fanned out over five counties to serve 58 arrest warrants for insurance fraud and related charges, such as grand theft, receiving stolen property and perjury. Four suspects were already arrested and charged late last year. Another suspect is in federal custody; a hold has been placed on him to answer for the local charges.

Insurance fraud costs California consumers and businesses an estimated $15 billion per year.

A total of 66 suspects will be charged (three persons were already in custody on unrelated charges and were re-arrested) with insurance fraud. Each count of insurance fraud is a felony and carries a maximum sentence of up to five years in state prison and/or a fine of $50,000, as well as the possibility of being ordered to pay an undetermined amount of fines and restitution.

"Today's arrests have dealt a death blow to these elaborately organized schemes. By working together, we've crippled their ability to continue their concerted rip-off of the system," said Insurance Commissioner Steve Poizner. "Insurance fraud isn't victimless. Every man, woman and child in California essentially pays a $500 'fraud tax'."

Fresno County District Attorney Elizabeth A. Egan said, "The large number of suspects arrested is indicative of the magnitude of insurance fraud. It concerns me to see our citizens paying higher premiums and increased consumer prices due to criminals taking advantage of the insurance system. I want to thank Insurance Commissioner Steve Poizner, and the Department of Insurance investigators for working closely with the Central Valley law enforcement agencies in our fight against insurance fraud."

"Californians are only gradually realizing that insurance fraud is a crime that takes money out of every citizen's pocket. All of us in law enforcement are pleased that Insurance Commissioner Steve Poizner is aggressively getting that message out," said Kern County District Attorney Ed Jagels.

"Due to the ever increasing costs to the citizens of California because of insurance fraud, we will aggressively investigate and prosecute those who seek to profit from insurance fraud," stated Ronald L. Calhoun, Kings County District Attorney.

Merced County District Attorney Larry Morse II added, "The scope of this investigation underscores the regional nature of organized insurance fraud activities. Our success in combating these crimes is greatly enhanced by cooperative efforts among prosecutors and the Department of Insurance. We appreciate the leadership of Commissioner Poizner on this issue and look forward to working closely with his department to hold insurance thieves fully accountable."

Tulare County District Attorney Phil Cline expounded, "We will prosecute fraud of any kind. Auto insurance fraud is just one of the fraud issues that are currently hurting the citizens of our county. Every time one person commits fraud of this type, it causes our insurance rates to go up. This is just another example of what crime can do to the average citizen. Auto insurance fraud does exist in our communities and we will do everything we can to address this problem.

By investigating, arresting and prosecuting the offenders, hopefully, it will send a message to others that we are aware of the problem and are aggressively attacking it. We will not sit by and not take a stand against these people who choose to rip-off our citizens."

Today's announcement covers four sets of enforcement actions: Operation Scratch n' Play, Operation Back Draft, Operation Round-Up, and two other workers' compensation insurance premium fraud cases.

Operation Scratch n' Play (Fresno, Kings, Madera, San Luis Obispo and Tulare Counties)

The culmination of a year-long investigation by the California Department of Insurance, Fraud Division (CDI), the above district attorney offices and the California Bureau of Automotive Repair, this operation netted 38 suspects.

The California Highway Patrol (CHP), National Insurance Crime Bureau (NICB), and the special investigations unit from Geico Insurance Company and the California State Automobile Association (CSAA) also assisted in this investigation.

The suspects arrested either provided, assisted, or verified false receipts which were to be used to obtain insurance monies through fraudulent insurance claims for aftermarket stereo equipment, custom wheels and tires, and performance parts. Scams of this type cost insurance carriers, and ultimately consumers, in the southern San Joaquin Valley an estimated $200,000 per year.

Operation Scratch n' Play investigators visited most of the aftermarket stereo, custom wheel and tire, and performance parts stores in Fresno, Kings, Madera, San Luis Obispo, and Tulare Counties. An undercover investigator discussed an item he or she wished to purchase with the store's personnel or owner, telling the store's representative that he or she did not have enough money to purchase the item at this time, but that an insurance claim was going to be filed that the vehicle had been stolen or burglarized. The store's representative then produced a backdated receipt showing that cash was used to purchase the selected item, which would indicate to the insurance carrier that the item was purchased and subsequently stolen during the supposed theft. The fraudulent receipts provided to the undercover investigators ranged from $800 to $5,000.

Operation Back Draft (Fresno County)

This year-long investigation by the Fresno County Urban Organized Auto Insurance Fraud Task Force (AIFTF), comprised of investigators from the CDI and the Fresno County District Attorney's Office, began with a tip from the CHP about potential insurance fraud within the city of Parlier. The AIFTF investigates organized automobile insurance fraud rings, which is defined as two or more suspects who conspire to commit automobile insurance fraud.

The original case quickly developed into five associated cases and extended from Parlier to the cities of Sanger, Del Rey and Kerman. Twelve suspects allegedly conspired in the disposal of five vehicles to collect insurance benefits to which they were not entitled.

The common ploy was to report a vehicle stolen then report the loss to the insurance carrier for compensation when, in fact, the vehicles had been taken out and set ablaze by either the registered owner(s) or associate(s) in an attempt to destroy the vehicle beyond repair and dispose of any evidence.

Assisting in the investigation was the CHP, special investigation units for Western United, Viking, Progressive, and the CSAA insurance companies, in addition to Finance and Thrift of Reedley, Call Gap, LTD. in Carlsbad, and Wells Fargo Bank in Phoenix, Arizona.

Operation Round-Up (Fresno County)

Also an AIFTF operation, 13 suspects spanned six cases and involved family members or close friends who conspired to dispose of their vehicles to collect insurance benefits to which they were not entitled, or conceal the identity of an excluded driver to obtain insurance benefits.

Workers' Compensation Insurance Premium Fraud (Fresno and Kern Counties)

Workers' compensation insurance premium fraud is a major cost driver in the workers compensation system and creates an unfair marketplace amongst competing businesses. To fight this problem, the San Joaquin Valley Premium Fraud Task Force (Task Force), comprised of the CDI; the Fresno, Kern, Kings, Merced, and Tulare District Attorney's Offices; and the state Employment Development Department's (EDD's) Investigations Division was formed.          

Today, the Task Force concluded two separate six-month investigations in Fresno and Kern Counties with the arrest of two suspects. The following two cases resulted in net losses totaling approximately $2.2 million, including $1.7 million to the State Compensation Insurance Fund (SCIF) and $500,000 to EDD.

One individual, of Reedley was arrested on four counts of workers' compensation insurance premium fraud and nine felony counts of failure to remit withheld payroll taxes. He is the owner and president of a farm labor service company, and allegedly failed to report and/or misclassified approximately $4 million in employee payroll to SCIF and EDD. This resulted in losses of $900,000 to SCIF and approximately $500,000 to EDD. 

Another individual of Bakersfield was arrested on one felony count of workers' compensation insurance premium fraud and one felony count of insurance fraud. The individual, a farm labor services contractor, underreported and/or misclassified employee payroll in an amount in excess of $2 million, which resulted in a loss of approximately $810,000 to SCIF.

Source www.insurane.ca.gov

U.S. LABOR DEPARTMENT'S OSHA FORGES CONSTRUCTION SAFETY ALLIANCE WITH NEW YORK CITY DEPARTMENT OF BUILDINGS. AGENCIES SEEK TO REDUCE HAZARDS TO CONSTRUCTION WORKERS IN ALL FIVE BOROUGHS

NEW YORK -- Building on an already strong working relationship, the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has formed an alliance with the New York City Department of Buildings (DOB) to reduce hazards and enhance safety for construction employees in the five boroughs of New York City.

The alliance builds on recommendations from the Suspended Scaffold Worker Safety Task Force and formalizes the existing working relationship between DOB and the three OSHA area offices that cover New York City: Manhattan (overseeing Manhattan, Queens and Brooklyn), Tarrytown (overseeing the Bronx) and Avenel, N.J. (overseeing Staten Island).

Under the alliance, OSHA and DOB will cross-train their inspectors and managers, respectively, on each agency's construction safety standards, regulations and procedures, with a focus on the most common construction hazards likely to harm employees. The agencies also will exchange best practices; publicize and share construction safety information with employers, employees and agency personnel; and participate in outreach activities.

"Sharing knowledge, data and resources is the key to this alliance," said Patricia K. Clark, OSHA's regional administrator in New York. "The more familiar we are with each other's procedures and the more knowledge of hazards and safeguards we can share with employees and employers, the better our chances of having the city's construction employees end each workday whole and healthy."

The alliance was signed May 1 in Manhattan by New York City Buildings Commissioner Patricia Lancaster, Clark and OSHA Area Directors Richard Mendelson (Manhattan), Diana Cortez (Tarrytown) and Robert Kulick (Avenel).

For information about this and other OSHA alliances and partnerships in New York City, contact the compliance assistance specialists in OSHA's Manhattan (212) 620-3200, Tarrytown (914) 524-7510 or Avenel (732) 750-3270 area offices.

OSHA safety and health alliances are part of U.S. Labor Secretary Elaine L. Chao's ongoing efforts to improve the health and safety of employees through cooperative partnerships with trade associations, labor organizations, employers and government agencies. OSHA currently has 468 alliances throughout the nation with organizations committed to fostering safety and health in the workplace.

Source: www.osha.gov

U.S. LABOR DEPARTMENT’S OSHA, NORTHERN ILLINOIS UNIVERSITY TO TACKLE ONE OF TOP SEVEN INDUSTRIES IN LOST WORK TIME CLAIMS WITH JUNE 6 SAFETY COURSE. WAREHOUSE AND DOCK SAFETY ON TAP FOR FULL DAY OF SAFETY TRAINING

DeKALB, IL -- Reducing lost workday injuries and eliminating fatalities in the warehousing and storage industry will be the focus of a training course for employees and managers to be sponsored by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA). The third annual Warehouse Safety Seminar will be held on June 6, from 8 a.m. to 4 p.m. CDT, at Northern Illinois University (NIU) in DeKalb.

The third annual seminar will provide background and instruction in critical safety topics such as forklift safety, hazard communication, material handling, ergonomics, fall protection and general warehouse safety. Attendees also will learn about the most frequently cited OSHA violations in warehousing and OSHA case examples of warehouse incidents that have caused serious injuries or loss of life.

Presenters, including OSHA’s Assistant Regional Administrator John Newquist, Senior Compliance Safety and Health Officer Misette Kobler and OSHA Region V Ergonomics Administrator Dana Root, will share with attendees some of their safety and health experiences.

To register, call NIU at (800) 656-5317 or visit the university’s National Safety Education Web site at www.earnyourcard.com.

Source: www.osha.gov

OSHA ANNOUNCES TARGETED INSPECTION PLAN FOR 2007

AGENCY TARGETS APPROXIMATELY 4,150 HIGH-HAZARD WORKSITES

WASHINGTON -- The U.S Department of Labor’s Occupational Safety and Health Administration (OSHA) today announced that its 2007 Site-Specific Targeting (SST) plan will focus on approximately 4,150 high-hazard worksites in its primary list for unannounced comprehensive inspections for the coming year.

"Over the past nine years, OSHA has used a site-specific targeting inspection program based on injury and illness data," said Assistant Secretary of Labor for OSHA Edwin G. Foulke Jr. "This approach allows us to focus our enforcement efforts on those workplaces with the highest numbers of injuries and illnesses."

This year's program (SST-07) stems from the agency's Data Initiative for 2006, which surveyed approximately 80,000 employers to obtain their injury and illness numbers for 2005. The program will initially cover worksites on the primary list that reported 11 or more injuries or illnesses resulting in days away from work, restricted work activity, or job transfer for every 100 full-time employees (known as the DART rate).

The primary list will also include sites based on a Days Away from Work Injury and Illness (DAFWII) rate of 9.0 or higher. Employers not on the primary list who reported DART rates of between 7.0 and 11.0, or DAFWII rates of between 4.0 and 9.0, will be placed on a secondary list for possible inspection. The national incident DART rate in 2005 for private industry was 2.4, while the national incident DAFWII rate was 1.4.

OSHA will inspect nursing homes and personal care facilities, but only the highest 50 percent of rated establishments will be included on the primary list. Inspections will focus primarily on ergonomic hazards relating to resident handling; exposure to blood and other potentially infectious materials; exposure to tuberculosis; and slips, trips, and falls.

The agency will also randomly select and inspect approximately 100 workplaces (with 100 or more employees) nationwide that reported low injury and illness rates for the purpose of reviewing the actual degree of compliance with OSHA requirements. These establishments are selected from those industries with DART and DAFWII rates that are higher than the national rate.

Finally, the agency will include on the primary list some establishments that did not respond to the 2006 data survey.

Source: www.osha.gov

"Money is a good servant but a bad master"
– French Proverb