The International Call for Fashion Safety - Accord on Fire and Building Safety in Bangladesh

MAY 13, 2013 

Accord on Fire and Building Safety in Bangladesh

The undersigned parties are committed to the goal of a safe and sustainable Bangladeshi ReadyMade Garment ("RMG") industry in which no worker needs to fear fires, building collapses, or 

other accidents that could be prevented with reasonable health and safety measures. 

The signatories to this Agreement agree to establish a fire and building safety program in 

Bangladesh for a period of five years. 

The programme will build on the National Action Plan on Fire Safety (NAP), which expressly 

welcomes the development and implementation by any stakeholder of any other activities that 

would constitute a meaningful contribution to improving fire safety in Bangladesh. The 

signatories commit to align this programme and its activities with the NAP and to ensure a close 

collaboration, including for example by establishing common programme, liaison and advisory 

structures.

The signatories also welcome a strong role for the International Labour Organization (ILO), 

through the Bangladesh office as well as through international programmes, to ensure that both 

the National Action Plan, and the programme foreseen by the signatories of this Agreement, get 

implemented. 

The signatories shall develop and agree an Implementation Plan within 45 days of signing this 

Agreement. The nongovernmental organisations which are signatories to the Joint Memorandum 

of Understanding on Fire and Building Safety (dated March 15, 2012), having stated their 

intention to support the implementation of this programme, shall, at their own election, be signed 

witnesses to this Agreement. 

This Agreement commits the signatories to finance and implement a programme that will take 

cognizance of the Practical Activities described in the NAP involving, at minimum, the following 

elements:

SCOPE: The agreement covers all suppliers producing products for the signatory companies. 

The signatories shall designate these suppliers as falling into the following categories, according 

to which they shall require these supplier to accept inspections and implement remediation 

measures in their factories according to the following breakdown: 

1. Safety inspections, remediation and fire safety training at facilities representing, in the 

aggregate, not less than 30%, approximately, of each signatory company’s annual 

production in Bangladesh by volume (“Tier 1 factories”).

2. Inspection and remediation at any remaining major or long-term suppliers to each 

company (“Tier 2 factories”). Together, Tier 1 and Tier 2 factories shall represent not less 

than 65%, approximately, of each signatory company’s production in Bangladesh by 

volume. 

3. Limited initial inspections to identify high risks at facilities with occasional orders, onetime orders or those for which a company’s orders represent less than 10% of the MAY 13, 2013 

factory’s production in Bangladesh by volume (“Tier 3 factories”). Nothing in this 

paragraph shall be deemed to alleviate the obligation of each signatory company to 

ensure that those factories it designates as Tier 3 represent, in the aggregate, no more than 

35%, approximately, of its production in Bangladesh by volume. Facilities determined, as 

a result of initial inspection, to be high risk shall be subject to the same treatment as if 

they were Tier 2 factories. 

GOVERNANCE:

4. The signatories shall appoint a Steering Committee (SC) with equal representation 

chosen by the trade union signatories and company signatories (maximum 3 seats each) 

and a representative from and chosen by the International Labour Organization (ILO) as a 

neutral chair. The SC shall have responsibility for the selection, contracting, 

compensation and review of the performance of a Safety Inspector and a Training 

Coordinator; oversight and approval of the programme budget; oversight of financial 

reporting and hiring of auditors; and such other management duties as may be required. 

The SC will strive to reach decision by consensus, but, in the absence of consensus, 

decisions will be made by majority vote. In order to develop the activity of the SC, a 

Governance regulation will be developed. 

5. Dispute resolution. Any dispute between the parties to, and arising under, the terms of 

this Agreement shall first be presented to and decided by the SC, which shall decide the 

dispute by majority vote of the SC within a maximum of 21 days of a petition being filed by 

one of the parties. Upon request of either party, the decision of the SC may be appealed to 

a final and binding arbitration process. Any arbitration award shall be enforceable in a 

court of law of the domicile of the signatory against whom enforcement is sought and 

shall be subject to The Convention on the Recognition and Enforcement of Foreign 

Arbitral Awards (The New York Convention), where applicable. The process for binding 

arbitration, including, but not limited to, the allocation of costs relating to any arbitration 

and the process for selection of the Arbitrator, shall be governed by the UNCITRAL 

Model Law on International Commercial Arbitration 1985 (with amendments as adopted 

in 2006). 

6. The signatories shall appoint an Advisory Board involving brands and retailers, suppliers, 

government institutions, trade unions, and NGOs. . The advisory board will ensure all 

stakeholders, local and international, can engage in constructive dialogue with each other 

and provide feedback and input to the SC, thereby enhancing quality, efficiency, 

credibility and synergy. The SC will consult the parties to the NAP to determine the 

feasibility of a shared advisory structure. 

7. Administration and management of the programme will be developed by the SC in 

consultation with the 'High-Level Tripartite Committee' established to implement and 

oversee the National Action Plan on Fire Safety, as well as with the Ministry of Labour 

and Employment of Bangladesh (MoLE), the ILO and the Deutsche Gesellschaft für 

Internationale Zusammenarbeit GmbH (GIZ), to maximize synergy at operational level; 

and the SC may make use of the offices of GIZ for administrative coordination and 

support.

CREDIBLE INSPECTIONS:

8. A qualified Safety Inspector, with fire and building safety expertise and impeccable 

credentials, and who is independent of and not concurrently employed by companies, 

trade unions or factories, shall be appointed by the SC. Providing the Chief Inspector acts 

in a manner consistent with his or her mandate under the provisions of this Agreement, 

and unless there is clear evidence of malfeasance or incompetence on his or her part, the 

SC shall not restrict or otherwise interfere with the Chief Inspector’s performance of the 

duties set forth in the Agreement as he or she sees fit, including the scheduling of 

inspections and the publishing of reports.

9. Thorough and credible safety inspections of Tier 1, 2 and 3 factories shall be carried out 

by skilled personnel selected by and acting under the direction of the Safety Inspector, 

based on internationally recognized workplace safety standards and/or national standards 

(once the review foreseen under the NAP is completed in June 2013). The Safety 

Inspector shall make all reasonable efforts to ensure that an initial inspection of each 

factory covered by this Agreement shall be carried out within the first two years of the 

term of this Agreement. The Safety Inspector will be available to provide input into the 

NAP legislative review and to support capacity building work regarding inspections by 

the MoLE foreseen under the NAP. 

10. Where a signatory company’s inspection programme, in the opinion of the Safety 

Inspector, meets or exceeds the standards of thorough and credible inspections, as defined 

by the Safety Inspector, it will be considered an integral part of the programme activities 

set forth in this Agreement. Signatory companies wishing to have their inspection 

programme so considered shall provide the Safety Inspector full access to the findings of 

their inspections and he or she will integrate these into reporting and remediation 

activities. Notwithstanding this provision, all factories within the scope of this Agreement 

shall still be subject to all the provisions of this Agreement, including but not limited to a 

least one safety inspection carried out by personnel acting under the direction of the 

Safety Inspector. 

11. Written Inspection Reports of all factories inspected under the programme shall be 

prepared by the Safety Inspector within two (2) weeks of the date of inspection and 

shared upon completion with factory management, the factory’s health and safety 

committee, worker representatives (where one or more unions are present), signatory 

companies and the SC. Where, in the opinion of the Safety Inspector, there is not a 

functioning health and safety committee at the factory, the report will be shared with the 

unions which are the signatories to this Agreement. Within a timeline agreed by the SC, 

but no greater than six weeks, the Safety Inspector shall disclose the Inspection Report to 

the public, accompanied by the factory’s remediation plan, if any. In the event that, in 

the opinion of the Safety Inspector, the inspection identifies a severe and imminent 

danger to worker safety, he or she shall immediately inform factory management, the 

factory’s health and safety committee, worker representatives (where one or more unions 

are present), the Steering Committee and unions which are signatories to this Agreement, 

and direct a remediation plan.

REMEDIATION:

12. Where corrective actions are identified by the Safety Inspector as necessary to bring a 

factory into compliance with building, fire and electrical safety standards, the signatory 

company or companies that have designated that factory as a Tier 1, 2, or 3 supplier, shall 

require that factory to implement these corrective actions, according to a schedule that is 

mandatory and time-bound, with sufficient time allotted for all major renovations.

13. Signatory companies shall require their supplier factories that are inspected under the 

Program to maintain workers’ employment relationship and regular income during any 

period that a factory (or portion of a factory) is closed for renovations necessary to 

complete such Corrective Actions for a period of no longer than six months. . Failure to 

do so may trigger a notice, warning and ultimately termination of the business 

relationship as described in paragraph 21. 

14. Signatory companies shall make reasonable efforts to ensure that any workers whose 

employment is terminated as a result of any loss of orders at a factory are offered 

employment with safe suppliers, if necessary by actively working with other suppliers to 

provide hiring preferences to these workers.

15. Signatory companies shall require their supplier factories to respect the right of a worker 

to refuse work that he or she has reasonable justification to believe is unsafe, without 

suffering discrimination or loss of pay, including the right to refuse to enter or to remain 

inside a building that he or she has reasonable justification to believe is unsafe for 

occupation. 

TRAINING:

16. The Training Coordinator appointed by the SC shall establish an extensive fire and building 

safety training program. The training program shall be delivered by a selected skilled 

personnel by the Training Coordinator at Tier 1 facilities for workers, managers and 

security staff to be delivered with involvement of trade unions and specialized local 

experts. These training programmes shall cover basic safety procedures and precautions, 

as well as enable workers to voice concerns and actively participate in activities to ensure 

their own safety. Signatory companies shall require their suppliers to provide access to 

their factories to training teams designated by the Training Coordinator that include 

safety training experts as well as qualified union representatives to provide safety training 

to workers and management on a regular basis. 

17. Health and Safety Committees shall be required by the signatory companies in all 

Bangladesh factories that supply them, which shall function in accordance with 

Bangladeshi law, and be comprised of workers and managers from the applicable factory. 

Worker members shall comprise no less than 50% of the committee and shall be chosen 

by the factory’s trade union, if present, and by democratic election among the workers 

where there is no trade union present.

COMPLAINTS PROCESS:

18. The Safety Inspector shall establish a worker complaint process and mechanism that 

ensures that workers from factories supplying signatory companies can raise in a timely 

fashion concerns about health and safety risks, safely and confidentially, with the Safety 

Inspector. This should be aligned with the Hotline to be established under the NAP. 

TRANSPARENCY AND REPORTING:

19. The SC shall make publicly available and regularly update information on key aspects of 

the programme, including:

a. a single aggregated list of all suppliers in Bangladesh (including sub-contractors) 

used by the signatory companies, based on data which shall be provided to the SC 

and regularly updated by each of the signatory companies, and which shall 

indicate which factories on this list have been designated by that company as Tier 

1 factories and which have been designated by that company as Tier 2 factories, 

however volume data and information linking specific companies to specific 

factories will be kept confidential, 

b. Written Inspection Reports, which shall be developed by the Safety Inspector for 

all factories inspected under this programme, shall be disclosed to interested 

parties and the public as set forth in paragraph 11 of this Agreement. 

Public statements by the Safety Inspector identifying any factory that is not acting 

expeditiously to implement remedial recommendations. 

c. Quarterly Aggregate Reports that summarize both aggregated industry 

compliance data as well as a detailed review of findings, remedial 

recommendations, and progress on remediation to date for all factories at which 

inspections have been completed.

20. The signatories to this Agreement shall work together with other organizations such as ILO 

and the High-Level Tripartite Committee and the Bangladeshi Government to encourage 

the establishment of a protocol seeking to ensure that suppliers which participate fully in 

the inspection and remediation activities of this Agreement shall not be penalised as a 

result of the transparency provisions of this Agreement. The objectives of the protocol 

are to (i) support and motivate the employer to take remediation efforts in the interest of 

the workforce and the sector and (ii) expedite prompt legal action where the supplier 

refuses to undertake the remedial action required to become compliant with national law. 

SUPPLIER INCENTIVES: 

21. Each signatory company shall require that its suppliers in Bangladesh participate fully in 

the inspection, remediation, health and safety and, where applicable, training activities, as 

described in the Agreement. If a supplier fails to do so, the signatory will promptly

implement a notice and warning process leading to termination of the business 

relationship if these efforts do not succeed. 

22. In order to induce Tier 1 and Tier 2 factories to comply with upgrade and remediation 

requirements of the program, participating brands and retailers will negotiate commercial terms 

with their suppliers which ensure that it is financially feasible for the factories to maintain safe 

workplaces and comply with upgrade and remediation requirements instituted by the Safety 

Inspector. Each signatory company may, at its option, use alternative means to ensure factories 

have the financial capacity to comply with remediation requirements, including but not limited to 

joint investments, providing loans, accessing donor or government support, through offering 

business incentives or through paying for renovations directly. 

23. Signatory companies to this agreement are committed to maintaining long-term sourcing 

relationships with Bangladesh, as is demonstrated by their commitment to this five-year 

programme. Signatory companies shall continue business at order volumes comparable to or 

greater than those that existed in the year preceding the inception of this Agreement with Tier 1 

and Tier 2 factories at least through the first two years of the term of this Agreement, provided 

that (a) such business is commercially viable for each company and (b) the factory continues to 

substantially meet the company’s terms and comply with the company’s requirements of its 

supplier factories under this agreement. 

FINANCIAL SUPPORT:

24. In addition to their obligations pursuant to this Agreement, signatory companies shall 

also assume responsibility for funding the activities of the SC, Safety Inspector and 

Training Coordinator as set forth in this Agreement, with each company contributing its 

equitable share of the funding in accordance with a formula to be established in the 

Implementation Plan. The SC shall be empowered to seek contributions from 

governmental and other donors to contribute to costs. Each signatory company shall 

contribute funding for these activities in proportion to the annual volume of each 

company’s garment production in Bangladesh relative to the respective annual volumes 

of garment production of the other signatory companies, subject to a maximum 

contribution of $500,000 per year for each year of the term of this Agreement. A sliding 

scale of minimum contributions based on factors such as revenues and annual volume in 

Bangladesh will be defined in the Implementation Plan with annual revisions, while 

ensuring sufficient funding for the adequate implementation of the Accord and the Plan. 

25. The SC shall ensure that there are credible, robust, and transparent procedures for the 

accounting and oversight of all contributed funds.

See also: 

Public Outrage Over Factory Conditions Spurs Labor Deal (NY Times) 

......................................

UNI Global Press Release

Politicians on both sides of the Atlantic are waking up to the fact they must take an initiative on Bangladesh garment factory safety.Global commerce union leaders are urging all governments to commit to the Accord on Fire and Building Safety and push for its speedy implementation. 

The Netherlands Government has called on Dutch retailers to sign the Accord and discussed financial support to improve conditions for the Bangladeshi garment industry. Other European governments, notably France, Denmark and Norway have also shown support. In the U.S. a group of leading Senators has written to retail CEOs who have not signed up, including Walmart and Gap, urging them to reconsider.

The legally binding Accord, driven by IndustriALL and UNI Global Union and the NGOs, the Clean Clothes Campaign and the Worker Rights Consortium, has a critical mass of support from leading retailers around the world with more than 35 brands confirmed:

H&M, Inditex, C&A, PVH, Tchibo, Tesco, Marks & Spencer, Primark, El Corte Inglés, jbc, Mango, Carrefour, KiK, Helly Hansen, G-Star, Aldi, New Look, Mothercare, Loblaws, Sainsbury’s, Benetton, N Brown Group, Stockmann, WE Europe, Esprit, Rewe, Next, Lidl, Hess Natur, Switcher, Abercrombie & Fitch, John Lewis, Charles Vögele, V&D, Otto Group, s.Oliver, Bonmarche, HEMA, Comtex.

UNI Global Union General Secretary, Philip Jennings said, “There can be no excuses from the retail sector for not signing up to the Accord, when Walmart alone spends $2.5 billion per year on advertising and Gap $653 million.” 

The trade unions committed to take the message back to their home governments to insist the retail sector backs the deal and that grass root members of parliament mobilise to support it.

Union leaders said it was time for governments to step up.

Per Tønnesen, President of the Danish union HK HANDEL said, “We welcome the fact that the Danish Trade Minister has raised the Bangladesh Factory Safety deal and shown support. This is an important step to convince Danish brands to sign the Accord. All Danish retail companies must be urged to support the Accord. HK HANDEL is looking forward to playing its part in rolling out the implementation plan and the governments should be on-board.” 

John Hannett, General Secretary of USDAW in the UK and President of UNI Europa Commerce said, “The British Government must get behind the Bangladeshi Safety deal but so must politicians of every political persuasion. The big UK retailers have shown their support for the Accord and now it’s up to the politicians to help convince those who have not yet signed. The French Commerce Minister has called on companies, unions and NGOs to come together to discuss concrete steps to improve factory safety in Bangladesh and the Dutch have made their position clear and are considering financial support – the UK must not drag its heels.” 

Michael Bride, of the United Food and Commercial Workers Union of North America said, "We applaud the group of eight U.S. Senators, led by Sherrod Brown, Tom Harkin and Dick Durbin, for calling on those brands yet to sign the Accord to reconsider. U.S. corporations should understand that their efforts to excuse themselves from human rights obligations which companies elsewhere have signed up to will be neither easily forgotten nor forgiven. The U.S. Government has a responsibility to ensure that companies located in its jurisdiction are not permitted to adhere to a lesser standard on human rights and safety than companies in the rest of the world."

The shoe factory collapse in Cambodia earlier this week has underlined that factory safety is not an issue confined to Bangladesh and that such an agreement is vital for the whole retail industry. 

Related articles

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• OSHA's Intent Is Not To Preempt State Tort Law Claims by the HazCom Standard
• Walmart to bypass Bangladesh accord

NJ Bayonne Medical Center - Highest Priced Medicine in the Nation

While workers' compensation insurance carriers may set approved fees or contract with providers, hospitals have huge disparities in the cost for medical care provided. Additionally, there appears to be no difference in the ultimate outcome based on cost for medical service provided.

Compromising fees for medical services has become a big business in the US. Regulatory agencies provide a forum for the re-evaluation and determination of the cost for medical service. Many companies have emerged that provide representation in assisting in compromising fee. NJ Workers' Compensation have been mandated with the jurisdiction to evaluate the need and reasonableness of medical care provided to injured workers and establish the reimbursable value of the medical services rendered.

The highest priced medicine does not yield the best result according to published data released by the US Government. The NY Times has analyzed  data and found that the NJ Bayonne Medical Center was the highest priced hospital in the nation.

"Until a recent ruling by the Internal Revenue Service, for instance, a hospital could use the higher prices when calculating the amount of charity care it was providing, said Gerard Anderson, director of the Center for Hospital Finance and Management at Johns Hopkins. “There is a method to the madness, though it is still madness,” Mr. Anderson said."

Ban Asbestos: Rotterdam Conference Highjacked by "The Dirty 7"

Civil society groups attending the Rotterdam Convention conference in Geneva are expressing grave alarm that the Convention has been hijacked by the asbestos industry, which is determined to prevent the environmental and health protections of the Convention from being implemented.

NJ Court Approves Medicare Set-Aside Agreement Lacking CMS Review

A NJ Superior Court deemed a proposed Medicare Set-Aside Agreement to be satisfactory to protect Medicare's interests and granted a Motion to Enforce a Pending Settlement. This action by the Court was taken after CMS (Centers for Medicare & Medicaid Services) declined to rule on the adequacy of the Set Aside Agreement because of limited Federal resources.

"The court has thoroughly reviewed the sworn testimony of plaintiffs' expert regarding the proposed set-aside amounts for future medical expenses relating to the
underlying accidents/incidents, which would otherwise be covered or reimbursable
by Medicare. The court finds that the proposed set-aside amount in each case
fairly takes Medicare's interests into account in that the figures are both reasonable and reliable. Therefore, the court is satisfied that Medicare's interests
have been adequately protected pursuant to the MSP. Plaintiffs shall set aside the
proposed sums in self-administered interest-bearing accounts to be used solely for
the purpose of satisfying future medical expenses related to the underlying accidents/incidents."


DUHAMELL, Plaintiff v. RENAL CARE GROUP EAST, INC., RCG Southern New Jersey, LLC, Philadelphia Suburban Development Corporation, Defendants. Catherine A. Ney, Plaintiff, et al,, --- A.3d ----, 2013 WL 2102701 (N.J.Super.A.D.) Decided Dec. 7, 2012. May 16, 2013.

Jenny Yang Sworn In as EEOC Commissioner Bipartisan Federal Agency Now at Full Strength

Jenny R. Yang was sworn in today as Commissioner of the U.S.  Equal Employment Opportunity Commission (EEOC). Yang was nominated by President Obama on Aug. 2, 2012, and was unanimously confirmed by the Senate on April 25, 2013, to serve a term expiring July 1, 2017.

With her arrival, the EEOC returns to its full complement of five commissioners. Yang joins

ChairJacqueline Berrien and Commissioners Constance Barker, Chai Feldblum and Victoria Lipnic to complete the five-member presidentially appointed bipartisan Commission, filling the position vacated by Stuart Ishimaru.

"I am delighted to welcome Jenny Yang to the Equal Employment Opportunity Commission," said EEOC Chair Jacqueline Berrien. "Her expertise in employment discrimination law and experience as a litigator will be great assets to the agency, and I look forward to working with her and my other colleagues on the Commission to promote equal opportunity in the workplace."

Yang was a partner of Cohen, Milstein, Sellers & Toll PLLC. She joined the firm in 2003, and she has represented thousands of employees across the country in numerous complex civil rights and employment actions. As chair of the firm's hiring and diversity committee, Yang has experience with the issues employers confront in making hiring and other personnel decisions.

Prior to joining Cohen Milstein, Yang served as a senior trial attorney with the U.S. Department of Justice, Civil Rights Division, Employment Litigation Section, where she enforced federal laws prohibiting discrimination in employment by state and local government employers from 1998 to 2003. Before that, she worked at the National Employment Law Project to enforce the workplace rights of garment workers. Yang clerked for the Honorable Edmund Ludwig on the U.S. District Court for the Eastern District of Pennsylvania.

"It is an incredible honor to serve as a Commissioner of the EEOC," said Commissioner Yang. "It is a privilege to work with so many talented and dedicated colleagues to ensure equal opportunity for all."

Yang previously served for over five years as vice chair and board member of the Asian Pacific American Legal Resource Center, a nonprofit organization that provides legal assistance to low-income Asian Pacific Americans and small business owners in Washington, D.C., Maryland and Virginia.

Yang received her B.A. from Cornell University in government. She received her J.D. from New York University School of Law, where she was a note and comment editor of the law review and a Root-Tilden public interest scholar. Yang and her husband, Kil Huh, director of the States' Fiscal Health Project at the Pew Charitable Trusts, have two sons. She is the daughter The Honorable Sue Yang, Retired NJ Judge of Compensation.

The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov

Obamacare Will Be Collecting Workers' Compensation Medical Records

The implementation of Affordable Care Act data collection regulations will include the collection of medical information concerning work related accidents and injuries.  The coalition of this information will broadly advance the concept of universal medical care and impose yet another route for the Centers for Medicare and Medicare to strengthen enforcement under the Medicare Secondary Payer Act.

The largest and most expansive database of personalized medical information is being established under the umbrella of an newly created unit under the authority granted to the Internal Revenue Service, The Federal Data Services Hub. Personal medical records, including electronic medical records, will be incorporated into the program. 

"On March 23, 2010, the President signed into law the Patient Protection and Affordable Care Act 
(P.L. 111-148). On March 30, 2010, the Health Care and Education Reconciliation Act of 2010 
(P.L. 111-152) was signed into law. The two laws are collectively referred to as the Affordable 
Care Act. The Affordable Care Act creates new competitive private health insurance markets –
called Exchanges – that will give millions of Americans and small businesses access to 
affordable coverage and the same insurance choices members of Congress will have. Exchanges 
will help individuals and small employers shop for, select, and enroll in high quality, affordable 
private health plans that fit their needs at competitive prices. The IT systems will support a 
simple and seamless identification of people who qualify for coverage through the Exchange, tax 
credits, cost-sharing reductions, Medicaid, and CHIP programs. By providing a place for onestop shopping, Exchanges will make purchasing health insurance easier and more understandable 
and will put greater control and more choice in the hands of individuals and small businesses."

Read more about "Federalization" and workers' compensation:

The Scarlet Letter - Workers' Compensation Style

Privacy, that was thought to be a paramount concern for individuals in workers' compensation, is now going away in Missouri. The Missouri legislature passed legislation that will allow employers to review the pending claim status of prospective employees to determine whether they have filed any workers' compensation claims. Injured workers in Missouri will now be stigmatized as a result of filing a workers' compensation claim.

"The division shall develop and maintain a workers' compensation claims database, accessible to potential employers through the division's website, containing all claims filed for compensation under this chapter. Claims records shall be retrievable only by an employer who during a pre-hire period provides a potential employee's name and social security number and shall, upon retrieval, identify the date of any claim made by such potential employee and whether the claim is open or closed."

To view the enacted bill SB34 go to www.moga.mo.gov

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Do I Need To File A Tax Return On My Workers Compensation?

Today's post comes from guest author Paul J. McAndrew, Jr. from Paul McAndrew Law Firm.

If you received workers’ compensation benefits, you may be wondering if you will need to report this money to the IRS and pay taxes on it. Under the Iowa Workers’ Compensation Act, money that you receive as workers’ compensation benefits is not taxable, with a few exceptions. You will have to pay taxes on your work comp benefits if:

• if the benefits are retirement plan benefits (this is true even if you retired due to disability)
• if part of your workers’ compensation benefit money lowers the amount you receive from your Social Security or Railroad Retirement Benefits. In that case, that the part of your workers compensation benefits is considered part of your Social Security (or RRB) and may be taxable.

If you return to work, your salary will be taxable again, as is it was before you received workers’ compensation benefits.

State Law Does Not Preempt State Medical Authorization Criteria

The 5th Circuit Court of Appeals has ruled that The Texas Workers' Compensation Act does not preempt the Medicare Secondary Payer (MSP) 42 U.S.C.§ 1395y(b), as to the state statute's mandated requirement to obtain preauthorization for medical care. 

The Court ruled that.  "...Congress explicitly prohibited workers' compensation and other insurers from subordinating their payment obligations to those of Medicare." "....Congress intended the MSP to complement, not supplant, state workers' compensation rules."

Caldera v. Insurance Co, of the State of PA, ____ F.3rd ___, 2013 WL 1975660 C.A.5 (Tex), 2013. Decided May 14, 2013.

The Government Must Lead The Way in Workplace Health and Safety

The government must maintain a strong and credible roll in establishing and maintaining workplace health and safety. The tendency to yield to political and economic interests should avoided.

One area where the government is lacking is the establishment on a complete ban of the

use of asbestos containing products. It is far late in the game, but lives will be saved if in fact asbestos was banned. Additionally, government agencies should be insulated from political  from those interests that would sway them into the opposite area.

"Government has a responsibility to implement effective public health measures that increase the information available to the public and decision makers, protect people from harm, promote health, and create environments that support healthy behaviors. The health, financial, and productivity gains from public health actions benefit individuals and society as a whole."

Click here to read, "Government's Role in Protecting Health and Safety, "Thomas R. Frieden, M.D., M.P.H. N Engl J Med 2013; 368:1857-1859May 16, 2013DOI: 10.1056/NEJMp1303819

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The Attack on the Citadel: A Potential National Loss

Workers’ Compensation is conceptually changing, and its extinction is becoming more apparent rather than its transformation. Over the past decades, the “grand bargain” of Workers’ Compensation had evolved to ease the American industrial/manufacturing revolution forward, without burden from the economic complexities and ramifications of the Civil Justice System. 

“The Promise” made in 1911, with the adoption of the compensation system, is now past history. The demands of the globalized marketplace have eroded the fortress of workers’ compensation that protected the rights, safety and lives of American workers.

Dynamic developments, occurring at an ever increasing pace, have altered the landscape and accelerated a devastating attack on the citadel of workers’ compensation. The root of the cause is economic.

OSHA's Intent Is Not To Preempt State Tort Law Claims by the HazCom Standard

My thanks to attorney, Steven H. Wodka of Little Silver, NJ, for sending this information:

"Those of you who handle toxic torts may have seen defense motions to dismiss your

clients’ failure to warn claims based on the argument that such claims are preempted by OSHA’s hazard communication standard.  Their argument is based on an unpublished NJ Appellate Division decision, Bass v. Air Products & Chemicals Inc., et al., Docket No.  A-4542-03T3, decided May 25, 2006.

Forecasters Predict Increased Hurricane Activity Raising Concern for Worker Saftey

On the heels of last year's Superstorm, Hurricane Sandy, some of the nation's top storm forecasters are now predicting yet another year of above average storms. The dire prediction raises concerns over the prospects on ensuring worker safety, and whether the workers' compensation system is capable of delivering benefits in an efficient and effective manner during recurrent natural disasters.


"We anticipate that the 2013 Atlantic basin hurricane season will have enhanced

activity compared with the 1981-2010 climatology. The tropical Atlantic has anomalously warmed over the past several months, and it appears that the chances of an El Niño event this summer and fall are unlikely. We anticipate an above-average probability for major hurricanes making landfall along the United States coastline and in the Caribbean. Coastal residents are reminded that it only takes one hurricane making landfall to make it an active season for them, and they need to prepare the same for every season, regardless of how much or how little activity is predicted."

Read the complete report: "EXTENDED RANGE FORECAST OF ATLANTIC SEASONAL HURRICANE ACTIVITY AND LANDFALL STRIKE PROBABILITY FOR 2013"

Protecting Healthcare Workers is a Goal of NIOSH

In the US there are over 14 million healthcare workers and many are not adequately protected from hospital and nursing home infections. Now NIOSH is going on the education offensive to alert healthcare workers on how to use respiratory protection at work.

Over the last few months, I have seen first hand how hospitals struggle to stop the spread of Staph
and Strep infections to little avail.Many healthcare professional don't know how to properly take an efficient culture while swabbing the patient's skin leading to alarming rates of incorrect diagnosis and frantic use of high powdered antibiotics that merely stress that patient more.

"Poor compliance with respiratory protection requirements and proper use recommendations in healthcare settings remains a vexing problem."

Click here to read the complete NIOSH announcement.

New DSM Criteria Manual Challenged by Expert for Lack of Validity

Setting standards for the assessment of psychiatric criteria in workers' compensation claims has been a major challenge. Subjective criteria has been difficult for the experts, evaluators and courts to yield an objective analysis.

With a new version of the Diagnostic and Statistical Manual of Mental Disorders, or

D.S.M., to be published a new challenge to the assessment tool has been made.

"Just weeks before the long-awaited publication of a new edition of the so-called bible of mental disorders, the federal government’s most prominent psychiatric expert has said the book suffers from a scientific 'lack of validity.'"

Read the complete article "Psychiatry’s Guide Is Out of Touch With Science, Experts Say" NY Times

Oklahoma Opt-Out Workers' Compensation Law Enacted

Governor Mary Fallin today signed into law Senate Bill 1062, a bill that reforms the workers’ compensation system in Oklahoma by removing it from the judicial system and making it an administrative process. The bill, by Senate President Pro Tem Brian Bingman and House Speaker T.W. Shannon, seeks to reduce costs for businesses by providing for an opt-out of the program.

It moves the state from a court-based workers’ compensation system to an administrative system, allowing for more timely processing of claims and reducing the adversarial nature of the process for both workers and employers. 

“For decades, Oklahoma has had one of the most expensive and inefficient workers’ compensation systems in the country, a constant obstacle for business owners looking to expand operations or create more jobs,” Fallin said.  “Senate Bill 1062 completely overhauls our flawed workers’ comp system, dramatically reducing the costs to businesses and freeing up private-sector resources that can be invested in jobs rather than lawsuits. Additionally, our reforms ensure injured workers are treated fairly and given the medical care needed to return to work.  This is an important pro-growth policy that will help us attract jobs and build a stronger and more prosperous Oklahoma.  My thanks go out to Pro Tem Bingman, Speaker Shannon and the entire Legislature forsending this bill to my desk.”

Private Sector Workers Compensation Costs Down For 7th Year

Professor Emeritus John F. Burton Jr., reports in his latest research report that private sector costs for workers' compensation costs are down for the 7th year straight. This gives rise to the next question as to whether workers' are just being denied workers' compensation benefits and the system has eroded.

"Issue 6 of the Workers’ Compensation Resources Research Report (WCRRR) examines

Professor Emeritis
John F. Burton Jr.

the employers’ costs of workers’ compensation. Part I relies on data from the Bureau of Labor Statistics (BLS) to examined national trends from 1986 to 2012. For private-sector employers, costs dropped for the seventh year in a row and represented 1.80 percent of payroll in 2012, the lowest figure since 1986. For all non-federal employers, costs of workers’ compensation dropped to 1.79 percent of payroll in 2012, the lowest figure since the data series began in 1991.

"Part II examines BLS data on the differences in the employers’ costs of workers’ compensation due to factors such as geographical location, industry, union status, and occupations of the firm’s employees. The variations of workers’ compensation costs among industries were significant in 2012, ranging from 4.47 percent of payroll in construction to 0.63 percent of payroll in the financial industry.

Sequester Whacks Injured Workers

Today's post comes from guest author Jay Causey from Causey Law Firm.

Injured workers with claims under the Longshore & Harbor Workers Act and the Defense Base Act, who are awaiting hearings by federal administrative law judges (ALJs), have now had their cases seriously impacted by the Sequester.  The Office of Administrative Law Judges (OALJ), with District Offices in seven cities including San Francisco, schedules hearings not only in those cities but in other venues in the District.  The San Francisco office schedules hearings in San Diego, Seattle, Portland, Denver and elsewhere, and so-called Calendar Calls are scheduled in those cities by traveling ALJs. 

The Sequester has caused the San Francisco office...to cancel all travel by ALJs until at least October, when a new fiscal year for OALJ may refresh its travel budget.

The Sequester has caused the San Francisco office, which covers a larger geographical territory than any other, to cancel all travel by ALJs until at least October, when a new fiscal year for OALJ may refresh its travel budget.  No further Calendars in outlying cities will be scheduled until at least October.  In the meantime, the parties may agree to bring their witnesses to San Francisco for hearings (or agree to a telephonic hearing – rarely a good alternative), but both sides must to agree to the alternative process.  The cost of bringing the claimant and expert witnesses to San Francisco, even if jointly agreed to, makes that a mostly unrealistic option.

The cancellation of travel for ALJs makes the system even more unfair to claimants.

Stay Sun Alert - Subscribe to UV Alert

Many workers suffer from compensable diseases caused by sun exposure. As the world's ozone layer continues to be deleted, More and more workers wo who have exposed to the sun on their jobs are suffering from sun induced illness. Prevent this contrition by staying alert as to the amount of Ultra-Violet Radiation (UV) and subscribe to UV Alert.

UV Index applications

Check your UV Index

	Download the UV Index smartphone app
	Sign up for UV Index email alerts

Every day the National Weather Service calculates the predicted UV Index for the next day in each area of the U.S. This UV Index forecast is published in mid-afternoon (Eastern time zone) at the EPA website. The ozone layer shields the Earth from harmful ultraviolet (UV) radiation.

Protecting Healthcare Workers

Kerri A. Thom, MD, MS, Assistant Professor of Medicine at the University of Maryland School of Medicine, puts a spotlight on the healthcare environment and its role in spreading bacteria that cause healthcare-associated infections. She discusses this topic in context of the Society for Healthcare Epidemiology of America(SHEA) spring meeting, where professionals in healthcare epidemiology and infection prevention are focusing on evidence-based research and policies to further identify the impact of the healthcare environment on healthcare-associated infections.

"At the meeting, several sessions examine motivation and behavior change techniques that

can optimize the efficacy of a good old-fashioned cleaning and disinfection. While hospital cleaning staff often focus on the disinfection of patient rooms’ bathrooms, other near-patient surfaces and equipment can be overlooked. SHEA believes educating staff on the role of the healthcare environment and optimizing worker performance can be one of the most effective measures to adequately disinfect patient rooms.

Click here to read more about the CDC initiative to protect healthcare workers.

OSHA Moves to Protect Temporary Workers

OSHA launches initiative to protect temporary workers from injuries at work.

The U.S. Department of Labor's Occupational Safety and Health Administration today announced an initiative to further protect temporary employees from workplace hazards. The announcement was made during a program at the department's headquarters marking Workers' Memorial Day – an annual observance to honor workers who have died on the job and renew a commitment to making work sites across the country safer.

Dr. David Michaels

OSHA today sent a memorandum to the agency's regional administrators directing field inspectors to assess whether employers who use temporary workers are complying with their responsibilities under the Occupational Safety and Health Act. Inspectors will use a newly created code in their information system to denote when temporary workers are exposed to safety and health violations. Additionally, they will assess whether temporary workers received required training in a language and vocabulary they could understand. The memo, which can be viewed at http://s.dol.gov/ZM, underscores the duty of employers to protect all workers from hazards.

"On Workers' Memorial Day, we mourn the loss of the thousands of workers who die each year on the job from preventable hazards," said Dr. David Michaels, assistant secretary of labor for occupational safety and health. "Many of those killed and injured are temporary workers who often perform the most dangerous jobs have limited English proficiency and are not receiving the training and protective measures required. Workers must be safe, whether they've been on the job for one day or for 25 years."

Workers' Compensation Has Become A Territorial Fight

As the nation's economy continues to struggle for upward movement, workers' compensation has become a political battlefield. Professional athletes have become a target as states attempt to pass legislation to restrict claims from visiting athletes.

"Controversial legislation that would restrict most professional athletes from out-of-state

teams from filing claims in California workers' compensation courts won overwhelming approval Thursday in the state Assembly.

Despite aggressive lobbying by professional football players and other athletes, the bill, AB 1309, passed 61 to 4. The measure now goes to the state Senate.

"Our workers' compensation system has been increasingly exploited by out-of-state professional players at the expense of California teams and all California businesses," said the bill's author, Assemblyman Henry T. Perea (D-Fresno). "The flood of claims are raising insurance costs for all employers."

See the complete article: Assembly OKs workers' comp bill to ban out-of-state athletes

Read more about "athletes" and workers' compensation

Hyde Park Corner - A New Place on Facebook for Discussions

Congratulations to my good friend, Stephen Embry, on the inauguration of his new page on Facebook to post  discussions about current topics, including workplace safety. His new page is called The Hyde Park Corner.

To commemorate the inauguration of The Hyde Park Corner,
I stopped by in London today to see and

hear what was happening actually at The Hyde Park Corner. 

I must say that things are a lot more significant and current on Steve's page. I would encourage you to visit it in the near future.

Intoxication, Work, And Workers' Compensation Don’t Mix

Today's post comes from guest author Paul J. McAndrew, Jr. from Paul McAndrew Law Firm of Iowa.

Most of us know that, for both professional reasons and in the interest of safety, remaining sober while on the job is essential. However, it is important to also recognize that workers who are intoxicated at the time that they sustain a work injury stand a far lower chance of ever collecting workers’ compensation.

If the blood test shows the presence of alcohol or drugs, odds that the employee will be able to collect workers’ compensation are much lower.

This is because of the intoxication defense: if an employer can prove that intoxication was the cause of the workers’ injury, then they employer is not required to provide workers’ comp for that injury. Now, there are some notable

Returning to Light-Duty Work - What, When, How and Why

Women making airplane wings, circa 1920. Seattle Municipal Archives

Today's post comes from guest author Kit Case from Causey Law Firm of Seattle, WA. Light duty issues can be a tricky area of workers' compensation law since most workers' compensation programs do not provide for a trial return to work period.

The Washington State Department of Labor and Industries encourages employers to offer light-duty positions to their injured workers - - the suggestion is written across the top of every time loss compensation order - - as early after an injury occurs as possible.  

The employer of an injured worker can offer shorter hours, a transitional job/job modifications or a new position entirely.  The pay scale can be at any rate at or above minimum wage.  In order to qualify as a valid job offer, a description of the position must be approved by a physician.  Once approved, the job must be offered, in writing, to the injured worker with specific details including the work schedule, rate of pay and person supervising the work.

If an injured worker declines a valid job offer, time loss compensation will end. 

If an injured worker declines a valid job offer, time loss compensation will end.  If the employer offers a return-to-work position that pays less than the workers’ time loss compensation rate, the worker will likely be eligible for partial compensation to make up the difference.  This benefit, called Loss of Earning Power (LEP) compensation, is based on a comparison of the pre-injury wage less the actual wages earned through return to work and pays 80% of the difference, up to a state-wide cap on compensation or the time loss compensation rate, whichever is less.