DLI

L&I Proposes 2.7 Percent Average Rise in Workers’ Comp Rates in 2014

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Joel Sacks, Director

This will be L&I’s first rate increase in three years.

The Department of Labor & Industries (L&I) has proposed an average 2.7 percent rate increase for 2014 workers’ compensation premiums, an increase of less than 2 cents per hour worked. Over the past two years, workers’ compensation surveys have shown an increase in rates nationally. This will be L&I’s first rate increase in three years.

Cutting Workers’ Compensation Costs

“This proposal is part of a long-term plan to ensure steady and predictable rates, help injured workers heal and return to work, and reduce costs by improving operations,” said L&I Director Joel Sacks. “My goal is to reduce costs by an additional $35-70 million in 2014.” 

Work underway to cut costs includes:

  • Helping injured workers return to work as soon as they are medically able.
  • Improving L&I’s workers’ compensation claims processes.
  • Improving workplace safety.
  • Improving medical care and reducing long-term disability.
  • Making it easy to do business with L&I.

 

Keeping Rates Steady

“I want wage inflation to be our benchmark for steady and predictable rates,” said Sacks. “Wage inflation is a good benchmark because workers’ comp costs increase as wages increase.”  Washington’s most recent wage inflation number is 3.4 percent. However, because Washington’s rates are based on hours worked and not payroll like other states, Washington needs to raise rates to get the revenue that other states get automatically.

“We must also continue to restore the state’s workers’ comp reserves that were used to hold down rates during the Great Recession,” Sacks added.  The department’s Workers’ Compensation Advisory Committee, made up of business and labor representatives, agreed to a plan to restore reserves over the next several years.

Public hearings on the proposed rates will be held in: 

  • Tukwila, Oct. 22, 10 a.m., Tukwila Community Center
  • Bellingham, Oct. 23, 10 a.m., Central Library Lecture Room.
  • Spokane Valley, Oct. 24, 10 a.m., CenterPlace Event Center.
  • Richland, Oct. 25, 9 a.m., Community Center Activity Room.
  • Tumwater, Oct. 28, 10 a.m., L&I Auditorium.
  • Vancouver, Oct. 29, 10 a.m., Northwest Regional Training Center Rainier Auditorium.

Comments about the proposed rates can be made at the public hearings or in writing to Doug Stewart, Employer Services Program Manager, P. O. Box 44140, Olympia, WA 98504-4140, or email to Doug.Stewart@Lni.wa.gov.  More information regarding the rates proposal is available at www.Rates.Lni.wa.gov  Final rates will be adopted in early December and go into effect Jan. 1, 2014. 

Workers’ Comp Facts:

  • The proposed rate is an average. An individual employer’s actual rate change may be more or less depending on that employer’s industry and history of claims that result in wage replacement and/or disability benefits.
  • About 100,000 claims are filed each year through the Washington State Workers Compensation State Fund. 
  • Factsheet: L&I initiatives to improve outcomes and reduce costs

 

 

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Deion Sanders, critic of NFL concussion suits, seeks workers’ comp

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Today’s post was shared by Workers Comp Brief and comes from www.latimes.com

During the pregame show before February’s Super Bowl in New Orleans, Deion Sanders shared his thoughts about the thousands of former football players filing concussion lawsuits against the National Football League.

“The game is a safe game,” the television analyst and Hall of Fame cornerback said. “I don’t buy all these guys coming back with these concussions. I’m not buying all that. Half these guys are trying to make money off the deal.”

What Sanders didn’t say was that more than two years earlier he had filed a workers’ compensation claim in California, alleging head trauma and other injuries incurred while playing for the Dallas Cowboys.

 

The case is pending, but in November 2010, Sanders was determined to be 86% disabled by the Division of Workers’ Compensation, case documents show. Four doctors who examined the former star diagnosed more than a dozen medical conditions, including cognitive impairment and behavioral/emotional disorder. The review also said Sanders suffered from arthritis and “arousal disorder,” a sleep impairment.

Sanders is one of a host of current NFL employees, including at least six other NFL Network analysts and dozens of assistant coaches and team personnel, who have made such claims, The Times has found.

The filings from its own employees underscore the depth and complexity of a head injury problem that the NFL is trying hard to put to rest. As the league opens its season this week, it’s pushing legislation in…

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Rail Company Involved in Quebec Explosion Files for Bankruptcy

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Today’s post was shared by Jon L Gelman and comes from workers-compensation.blogspot.com

Today’s post was shared by WCBlog and comes from www.nytimes.com

BANGOR, Me. — The railroad company whose runaway oil train caused a fire and explosion that killed 47 people in a small town in Canada filed for bankruptcy protection on Wednesday.

The company — Montreal, Maine and Atlantic Railway — filed for Chapter 11 bankruptcy protection in United States and Canadian courts, citing debts to more than 200 creditors after the July disaster in Lac-Mégantic, Quebec.

The company chairman, Ed Burkhardt, said previously that a bankruptcy filing was likely after service disruptions because its rail line remained closed in Lac-Mégantic. The company, based in Hermon, Me., also faces lawsuits and enormous cleanup costs related to the disaster.

The parked train, with 72 tankers full of crude oil, was unattended when it began rolling toward town, eventually derailing downtown. Several tankers exploded, destroying 40 buildings in the lakeside town of 6,000 residents.

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Truck Drivers Not Revved Up About New Safety Rules

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Today’s post was shared by Jon L Gelman and comes from workers-compensation.blogspot.com

Today’s post was shared by NIOSH Transportation and comes from www.cnbc.com

The federal government thinks long-haul truckers like Bryan Spoon need more rest.

But with the Department of Transportation’s new rules forcing drivers to take longer breaks and cut back on hours behind the wheel, Spoon thinks the government has created a solution looking for a problem.

“I wish the government would just quit trying to fix something that’s not broken,” he said on a recent rest stop in Columbia, Mo., after hauling a load of construction materials on the 48-foot Great Dane flatbed behind his 2009 Volvo 780.

“If I get any more breaks out here I won’t be able to make a living,” he said.

Starting Monday, drivers like Spooner will have to stick to a schedule that requires taking a 30-minute break in the first eight hours of driving, cut the maximum workweek to 70 hours from 82, and “restart” those 70 hours with a 34-hour break once a week.

The rules are part of a program by the Obama administration to make U.S. highways safer by reducing the number of truck accidents and fatalities. The program also includes a safety rating system that shippers can review when they chose a new carrier, with the goal of prodding the trucking industry to further improve the safety of its drivers and equipment.

“The updated hours of service rule makes three common sense, data-driven changes to increase safety on our roadways and reduce driver fatigue, a leading factor in large truck crashes,” said…

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DLI

The High Price of Gas – Mileage Reimbursement for Injured Workers

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     Injured workers who are are dependent on time loss compensation payments of only 60-75% of their wages unfortunately are well used to the enormous financial losses and constraints this wage loss puts on their family budgets.  With budget cuts being made by the Department of Labor & Industries which place additional burdens on workers by reducing reimbursements for the additional costs incurred as a result of an injury, it is important to be aware of what you can be reimbursed for, and what some relatively new regulations do not cover.  The current mileage reimbursement rate is now 56.5 cents per mile.

When money is tight, making sure you receive everything you are entitled to under your claim is important!

     Injured workers are always entitled to receive travel and/or wage reimbursement if they are asked to attend an IME (Independent Medical Exam).  However, we have noted that more recently both the Department and self-insured employers are failing to provide workers with the form necessary to be reimbursed gas mileage for what are often not insignificant distances.   Many workers are unaware they can have their wages reimbursed as well if they miss time from work.  The form can be found online here.  When self-insured employers do not provide our clients with a reimbursement form when sending out IME notices, we will send out the Department’s standard form.

     More difficult to decipher are the rules allowing for travel reimbursement for medical treatment or vocational services.  A different form must be filed to obtain reimbursement for these expenses.  At Causey Law Firm, we insure that our clients are reimbursed for travel for vocational meetings which take place in our office.  Parking is expensive in Seattle, and that cost can be reimbursed to you directly.  Some law firms charge a fee on travel reimbursement expenses, but we do not.

     While injured workers have the right to treat with their own preferred provider, travel reimbursement is only paid for regular treatment visits if there is no adequate treatment provider within 15 miles of their home AND if the claims manager has pre-authorized the travel.  Travel reimbursement is now limited for regular medical treatment visits by the so-called “15 mile rule”.  Thus, if your pre-authorized provider is 30 miles from your home, reimbursement will only be provided for the last 15 miles each way of that trip.  As with medical appointments, regular visits to meet with a vocational counselor are only covered after that 15 mile threshold has been reached.  If you are approved for a formal vocational retraining plan, however, mileage may be fully reimbursable through your plan with necessary signatures and paperwork submitted through a vocational rehabilitation counselor.

      Many workers are unaware of their right to apply for reimbursements, which can be submitted to the Department for a period up to one year of the date of travel.  The Department’s general guidelines can be seen here.  When money is tight, making sure you receive everything you are entitled to under your claim is important!

 Photo credit: Eric Fischer / Foter / CC BY

History, Holiday

Pay Tribute on Labor Day – A Nationwide Holiday

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Detailed illustration of a 3-cent stamp issued to commemorate Labor Day in 1956. The image comes from a mosaic in the lobby of the AFL-CIO building in Washington, D.C.

     The US Department of Labor – which is celebrating its centennial this year – has provided a history of Labor Day, including the inception of the holiday and the traditions that surround it, excerpted below. 

…a day to honor those “who from rude nature have delved and carved all the grandeur we behold.”

     The form that the observance and celebration of Labor Day should take was outlined in the first proposal of the holiday — a street parade to exhibit to the public “the strength and esprit de corps of the trade and labor organizations” of the community, followed by a festival for the recreation and amusement of the workers and their families. This became the pattern for the celebrations of Labor Day. Speeches by prominent men and women were introduced later, as more emphasis was placed upon the economic and civic significance of the holiday. Still later, by a resolution of the American Federation of Labor convention of 1909, the Sunday preceding Labor Day was adopted as Labor Sunday and dedicated to the spiritual and educational aspects of the labor movement.

     The character of the Labor Day celebration has undergone a change in recent years, especially in large industrial centers where mass displays and huge parades have proved a problem. This change, however, is more a shift in emphasis and medium of expression. Labor Day addresses by leading union officials, industrialists, educators, clerics and government officials are given wide coverage in newspapers, radio, and television.

     The vital force of labor added materially to the highest standard of living and the greatest production the world has ever known and has brought us closer to the realization of our traditional ideals of economic and political democracy. It is appropriate, therefore, that the nation pay tribute on Labor Day to the creator of so much of the nation’s strength, freedom, and leadership — the American worker.

 Opportunity. Then and now, it’s about opportunity.

     Labor Secretary Tom Perez blogged about the interwoven history of the civil rights movement and the labor movement, their common goals, and the needs we still face today.  Secretary Perez said:

     “…But again, there is still so much more to do … in skills training and education, workplace safety and health, retirement security and job creation. And in particular, we must do more to ensure an honest day’s pay for an honest day’s work.

     People who work full-time in America should not have to live in poverty – simple as that. Too many jobs don’t pay enough to get by, let alone get ahead. Too many people are finding the rungs on the ladder of opportunity further and further apart. Workers around the country are bravely raising their collective voice and taking action to demand fair wages. We need to hear these voices. They are acting in the proud tradition of the marchers 50 years ago who took action for justice and dignity.”

     We couldn’t agree more. So, as we head out to our family barbeques or other Labor Day activities, we wish to pay tribute to those individual threads – the American Workers – that together create the fabric of our nation.

DLI

Spokane Restaurant Owner Charged with Theft of Nearly $250,000 in Workers’ Comp Payments

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     The Washington State Department of Labor and Industries issued the following news bulletin with details of a recent fraud investigation:

A Spokane restaurant owner faces a felony theft charge alleging she defrauded the state of nearly $250,000 in workers’ compensation benefits over eight years while claiming she could not work.  In reality, a Department of Labor & Industries investigation found Wanitta Racicot, 69, was cooking, busing tables and performing other duties at a restaurant that she co-owns.

The Attorney General’s Office recently charged Racicot, of Spokane Valley, with one count of first-degree theft in Spokane County Superior Court. Racicot is scheduled to enter her plea to the charge on Sept. 4. According to court documents, Racicot filed for workers’ compensation with L&I in 2001, claiming she injured both of her arms while working at a restaurant. After opening her claim, she regularly signed official documents stating she was not employed and was unable to work due to her injury.

In August 2011, L&I launched an investigation after Racicot’s case raised red flags to a department employee, who was examining whether Racicot should be referred for a pension. During the investigation, Racicot told an investigator that her hands remained so damaged that she could not button shirts or put on earrings, court documents said. The same month, an investigator witnessed Racicot carrying groceries, busing heavy dishes, scrubbing the bar counter and doing other tasks at her Spokane business, Broadway Bar and Grill, on multiple days. In addition, Racicot’s current and former employees and business associates told the investigator that she had been working at the restaurant for more than five years, and one employee said she had been doing so since at least 2001.

The charge alleges Racicot fraudulently received $249,267 in time-loss benefits for replacement of lost wages from March 2003 until August 2011. First-degree theft carries a maximum penalty of 10 years in prison plus a $20,000 fine and costs.

     In addition to the criminal penalty and fines, I expect that an overpayment order with fraud penalties was also issued under the workers’ compensation claim, although this was not mentioned in the bulletin.  The Department is able to issue an order claiming an overpayment of the benefits paid incorrectly PLUS a penalty of up to 50% of the overpaid amount.  The criteria for meeting the legal burden of proof in a fraud case is pretty tough, for good reason, but when fraud is proven the penalties can be quite severe.

     The description of this case sounds like the Department has a solid case against the claimant.  However, not all fraud cases are as clear-cut.  If you find yourself facing an overpayment order, with or without allegations of fraud, contact an attorney for possible assistance with the fight to come.

 

Photo credit: Flavia_FF / Foter / CC BY-NC-ND

DLI

Spokane Restaurant Owner Charged with Theft of Nearly $250,000 in Workers’ Comp Payments

Aside

     The Washington State Department of Labor and Industries issued the following news bulletin with details of a recent fraud investigation:

A Spokane restaurant owner faces a felony theft charge alleging she defrauded the state of nearly $250,000 in workers’ compensation benefits over eight years while claiming she could not work.  In reality, a Department of Labor & Industries investigation found Wanitta Racicot, 69, was cooking, busing tables and performing other duties at a restaurant that she co-owns.

The Attorney General’s Office recently charged Racicot, of Spokane Valley, with one count of first-degree theft in Spokane County Superior Court. Racicot is scheduled to enter her plea to the charge on Sept. 4. According to court documents, Racicot filed for workers’ compensation with L&I in 2001, claiming she injured both of her arms while working at a restaurant. After opening her claim, she regularly signed official documents stating she was not employed and was unable to work due to her injury.

In August 2011, L&I launched an investigation after Racicot’s case raised red flags to a department employee, who was examining whether Racicot should be referred for a pension. During the investigation, Racicot told an investigator that her hands remained so damaged that she could not button shirts or put on earrings, court documents said. The same month, an investigator witnessed Racicot carrying groceries, busing heavy dishes, scrubbing the bar counter and doing other tasks at her Spokane business, Broadway Bar and Grill, on multiple days. In addition, Racicot’s current and former employees and business associates told the investigator that she had been working at the restaurant for more than five years, and one employee said she had been doing so since at least 2001.

The charge alleges Racicot fraudulently received $249,267 in time-loss benefits for replacement of lost wages from March 2003 until August 2011. First-degree theft carries a maximum penalty of 10 years in prison plus a $20,000 fine and costs.

     In addition to the criminal penalty and fines, I expect that an overpayment order with fraud penalties was also issued under the workers’ compensation claim, although this was not mentioned in the bulletin.  The Department is able to issue an order claiming an overpayment of the benefits paid incorrectly PLUS a penalty of up to 50% of the overpaid amount.  The criteria for meeting the legal burden of proof in a fraud case is pretty tough, for good reason, but when fraud is proven the penalties can be quite severe.

     The description of this case sounds like the Department has a solid case against the claimant.  However, not all fraud cases are as clear-cut.  If you find yourself facing an overpayment order, with or without allegations of fraud, contact an attorney for possible assistance with the fight to come.

 

Photo credit: Flavia_FF / Foter / CC BY-NC-ND

Uncategorized

The Price of ‘Made in China’

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Today’s post was shared by Jon L Gelman and comes from workers-compensation.blogspot.com

Today’s post was shared by Jon L Gelman and comes from www.nytimes.com

HERE is a symbol of China’s assault on the American economy: the Verrazano-Narrows Bridge, which connects Brooklyn and Staten Island. This landmark, which opened in 1964, is North America’s longest suspension bridge. It’s also in urgent need of renovation. Unfortunately, $34 million in steel production and fabrication work has been outsourced to China.

How did this happen? The Metropolitan Transportation Authority says a Chinese fabricator was picked because the two American companies approached for the project lacked the manufacturing space, special equipment and financial capacity to do the job. But the United Steelworkers claims it quickly found two other American bridge fabricators, within 100 miles of New York City, that could do the job.

The real problem with this deal is that it doesn’t take into account all of the additional costs that buying “Made in China” brings to the American table. In fact, this failure to consider all costs is the same problem we as consumers face every time we choose a Chinese-made product on price alone — a price that is invariably cheaper.

Consider the safety issue: a scary one, indeed, because China has a very well-deserved reputation for producing inferior and often dangerous products. Such products are as diverse as lead-filled toys, sulfurous drywall, pet food spiked with melamine and heparin tainted with oversulfated…

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Why unions are turning on Obamacare

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Today’s post was shared by Jon L Gelman and comes from workers-compensation.blogspot.com

The Affordable Care Act continues to generate controversy. There are obviously many paths to the same destination. Today’s post was shared by Steven Greenhouse and comes from tv.msnbc.com
President Barack Obama speaks at the AFL-CIO Labor Day picnic at Coney Island in Cincinnati Sept. 7, 2009. Some labor unions that initially backed Obama's health care overhaul are now frustrated and angry about what they say are unexpected consequences of the plan that could hurt their members. (Photo by David Kohl/AP)
 (Photo by David Kohl/AP)

President Barack Obama speaks at the AFL-CIO Labor Day picnic at Coney Island in Cincinnati Sept. 7, 2009. Some labor unions that initially backed Obama’s health care overhaul are now frustrated and angry about what they say are unexpected consequences of the plan that could hurt their members.

“Repeal and replace” is the Grand Old Party’s oft-repeated mantra regarding Obamacare, which House Republicans voted to repeal for the 40th time on Friday. But in April, an organization in the president’s base echoed the refrain.

On April 24, the United Union of Roofers, Waterproofers, and Allied Workers released a statement demanding “repeal or complete reform of the Affordable Care Act.” While no other union has yet called for an outright repeal of the health care law, a growing number of them argue that serious reform is needed.

“We continue to stand behind real health care reform, but the law as it stands will hurt millions of Americans including the members of our respective unions,” wrote the presidents of three major labor unions in a July letter to Congressional Democratic leadership. The subsequent three and a half weeks have not assuaged their fears.

“There are members of Congress who have…

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Published by Causey Wright