The U.S. Department of Labor has recovered more than $1 million in back wages and liquidated damages for 196 employees of Bowlin Group LLC and Bowlin Services LLC out of Ohio and Kentucky. Bowlin Services installed cable for Insight Communications, a cable, telephone and Internet provider in Kentucky. The defendants misclassified 77 employees as independent contractors and violated the Fair Labor Standards Act (FLSA) by denying these workers access to critical benefits, including minimum wage, overtime, family and medical leave, unemployment insurance, workers’ compensation and failing to maintain accurate payroll records.
Misclassifying employees negatively impacts our economy, generating losses to the U.S. Treasury, Social Security and Medicare funds, state unemployment insurance, and state workers’ compensation funds. It also leads to unfair competition because businesses that play by the rules are at a disadvantage.
This problem has become so acute in Tennessee that last month the legislature passed Senate Bill 833, which has been signed into law and imposes penalties on construction companies for misclassifying workers in an attempt to evade workers’ compensation premiums. A Tennessee study in 2012 revealed losses of up to $91.6 million in workers’ compensation premiums. North Carolina has identified the problem but has yet to take any action. Until states aggressively prosecute misclassification, this fraud will continue.
Today’s post comes from guest author Rod Rehm from Rehm, Bennett & Moore.
Truckers are frequently entitled to benefits from multiple states for an injury. Each state sets rules for applying its workers’ compensation laws. Virtually all states cover accidents that happen in that state. Many states allow benefits if the employer has it primary location in that state. Others cover claims if the employer is doing business it the state. There are different rules in each state and you should talk to experience workers compensation lawyer to learn what laws cover your injury. However, you do not have to make a choice.
Unless the state law says it will not provide coverage if another state does, you have multiple forums and can file in all of them.
The law established by the United State Supreme court in Thomas v. Washington Gas Light Co. is that compensation does not involve a “choice of law” question. The issue is one of coverage. Does the injury come within the coverage of one or more state? If so, each of the states can apply their law and award benefits even if a claim is being pursued elsewhere at the same time. Unless the state law says it will not provide coverage if another state does, you have multiple forums and can Continue reading
Today’s post comes from guest author Edgar Romano from Pasternack Tilker Ziegler Walsh Stanton & Romano.
This has been a tragic week in our country. Monday’s Boston Marathon attack was followed by Wednesday’s massive blast at the West Fertilizer Company in Texas. As I write, the final death toll from the West Fertilizer Co. fire has yet to be determined. It is currently unknown what caused the blast and it is unknown whether the casualties included employees, first responders or citizens. However as we look at this tragedy we should be reminded that this spring marks the 102nd anniversary of the Triangle Shirtwaist Fire. That terrible event which took place on March 26, 1911 was followed by a swift and aggressive response by workers and labor activists. Their response led to the establishment of many of the protective organizations American workers now rely on, including the workers’ compensation system, the American Society of Safety Engineers, and the U.S. Department of Labor.
As with the Triangle fire, this should be a time for action as well as reflection. April 28th is Workers’ Memorial Day, a great opportunity to talk about how to establish better workplace safety so that no tragedies like the Triangle factory or West Fertilizer explosion – if caused by unsafe work conditions – occur again. Whatever the cause, let this tragic week be a wake up call to us to prevent more people from dying needlessly in the future,