The misclassification of workers is a major problem in the workers' compensation market. Some legislatures, like New Jersey, have enacted laws prohibiting the misclassification of workers.
"The Legislature finds that employers in the construction industry who improperly classify employees as independent contractors deprive these workers of proper Social Security benefits and other benefits, while reducing the employers' State and federal tax withholdings and related obligations. Moreover, this practice puts businesses that bear higher costs for complying with the law at a competitive disadvantage." NJAC 12:65
Showing posts sorted by relevance for query misclassification. Sort by date Show all posts
Showing posts sorted by relevance for query misclassification. Sort by date Show all posts
Friday, May 8, 2009
Wednesday, October 9, 2013
NJ Police Officer Indicted for Misclassification and Workers' Compensation Fraud
Today's post was shared from www.trentonian.com
[Click here to see the rest of this post]
A Trenton police officer and his father were indicted last week on charges of false swearing and workers compensation fraud.
Trenton Police officer Gaetano Ponticiello, 42, and his father Filippo Ponticiello, 65, were indicted last week by a Mercer County grand jury on fourth-degree charges of false swearing and workers compensation fraud. Each offense carries a maximum penalty of 18 months in prison and a $10,000 fine. According to prosecutors in the case, on Feb. 23, 2009, both Gaetano and Filippo made false statements under oath regarding workers compensation claims. Prosecutors say the false or misleading statements included a misclassification of employees for the purpose of evading the full payment of benefits or premiums. Both father and son are scheduled to appear in Mercer County Superior Court Oct. 25. Gaetano Ponticiello has been with the Trenton Police Department for at least 15 years. Lt. James Slack of the Trenton Police Department internal affairs told The Trentonian in July that Ponticiello has been suspended without pay. |
Wednesday, August 3, 2022
Misclassification: 16 Workers Held to be Employees
An employer need not control every facet of a person's responsibilities for that person to be deemed an employee.
Sunday, September 22, 2013
Home Care Workers Win Wage and Overtime Protection
 Since they were exempted from the FLSA nearly four decades ago, home care workers seldom have been paid overtime and their net income is often less than the minimum wage, considering time spent in travel between the homes where they work in a single day and its cost. Unlike workers covered by federal labor laws, they have not been paid for all the hours they are on the clock. AFL-CIO President Richard Trumka says the new rule: "...finally recognizes the value of the work done by hundreds of thousands of people who take care of our aging parents, as well as our sisters, brothers and children with disabilities….Today’s action will not only benefit the largely female, minority and low-wage workers who provide these essential services, it will help to ensure an adequate supply of home care workers as demand grows, reduce turnover and improve quality, permitting more Americans who wish to stay in their own homes as they grow old or experience disability to do so.Secretary of Labor Thomas... |
Related articles
- Many States Look to Raise Minimum Wage (workers-compensation.blogspot.com)
- In California, Renewed Debate Over Home Care (workers-compensation.blogspot.com)
- Misclassification - Department of Labor Recovery (workers-compensation.blogspot.com)
- Modern Families and Worker Protections (workers-compensation.blogspot.com)
- Mexican Consulate, Labor Dept. Partner On Worker Protection (workers-compensation.blogspot.com)
- Minimum wage in California to be $10 an hour (workers-compensation.blogspot.com)
Tuesday, July 20, 2021
HHS Announces $103 Million from American Rescue Plan to Strengthen Resiliency and Address Burnout in the Health Workforce
The U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced the availability of an estimated $103 million in American Rescue Plan funding over a three-year period to reduce burnout and promote mental health among the health workforce.
Tuesday, May 1, 2012
US Department of Labor recovers $4.83 million in back wages, damages for more than 4,500 Wal-Mart workers
Misapplied exemption resulted in pay violations; nearly $464,000 assessed in penalties
Wal-Mart Stores Inc., headquartered in Bentonville, Ark., has agreed to pay $4,828,442 in back wages and damages to more than 4,500 employees nationwide following an investigation by the U.S. Department of Labor's Wage and Hour Division that found violations of the federal Fair Labor Standards Act's overtime provisions. Additionally, Wal-Mart will pay $463,815 in civil money penalties.
The violations affected current and former vision center managers and asset protection coordinators at Wal-Mart Discount Stores, Wal-Mart Supercenters, Neighborhood Markets and Sam's Club warehouses. Wal-Mart failed to compensate these employees with overtime pay, considering them to be exempt from the FLSA's overtime requirements. The Labor Department's investigation found that the employees are nonexempt and consequently due overtime pay for any hours worked beyond 40 in a week.
"Misclassification of employees as exempt from FLSA coverage is a costly problem with adverse consequences for employees and corporations," said Secretary of Labor Hilda L. Solis. "Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action to ensure that workers receive the wages they have earned."
Under the terms of the settlement, Wal-Mart has agreed to pay all back wages the department determined are owed for the violations plus an equal amount in liquidated damages to the employees. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for back wages and an equal amount in liquidated damages. The civil money penalties assessed stem from the repeat nature of the violations. Wal-Mart, which operates more than 3,900 establishments in the United States, corrected its classification practices for these workers in 2007, and negotiation over the back pay issues has been ongoing since that time. A third-party administrator will disburse the payments to the affected employees.
"Our department has been working with Wal-Mart for a long time to reach this agreement," said Nancy J. Leppink, deputy administrator of the Wage and Hour Division. "I am very pleased that staff in our Southwest region persevered, ensured these employees will be paid the back wages they are owed and brought this case to conclusion. Thanks to this resolution, thousands of employees will see money put back into their pockets that should have been there all along. The damages and penalties assessed in this case should put other employers on notice that they cannot avoid their obligations to their employees by inappropriately classifying their workers as exempt."
The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the department's regulations.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records.
Related articles
Monday, July 26, 2021
VA mandates COVID-19 vaccines among its medical employees including VHA facilities staff
Department of Veterans Affairs Secretary Denis McDonough announced he will make COVID-19 vaccines mandatory for Title 38 VA health care personnel — including physicians, dentists, podiatrists, optometrists, registered nurses, physician assistants, expanded-function dental auxiliaries and chiropractors — who work in Veterans Health Administration facilities, visit VHA facilities or provide direct care to those VA serves.
Thursday, December 29, 2016
OSHA cites NJ roofing contractor for exposing workers to falls, other hazards $112K
Hackensack Roofing Co. Inc., 83 First St., Hackensack, New Jersey was cited for OSHA
violations.Citations issued: On Dec. 16, the U.S. Department of Labor's Occupational Safety and Health Administration issued citations to the company for one serious and three repeat safety violations.
Investigation findings: As part of the agency's Local Emphasis Program focused on falls, OSHA began the East Rutherford inspection on Oct. 18, after inspectors observed employees working on a roof without fall protection. The Wallington inspection was opened in response to a complaint alleging fall hazards on the site.
Inspectors issued citations for repeat violations due to a lack of fall and eye protection. The company was previously cited for similar violations in 2014.
A serious citation was issued because workers were throwing roof shingles from the roof without the use of a container to catch the materials.
Quote: "The fact that Hackensack Roofing allowed employees to work without basic fall protection on two separate sites is problematic and indicates a breakdown in their safety and health program," said Lisa Levy, director of OSHA's Hasbrouck Heights Area Office. "Falls in construction continue to be the leading cause of workplace fatalities. By repeatedly failing to comply with OSHA regulations, this employer continues to put its workers at risk, leaving them vulnerable to falls that could permanently injure or kill them."
Proposed penalties: $112,487
The citation can be viewed at:
The employer has 15 business days from receipt of its citations and proposed penalties to comply, request a conference with OSHA's area director or contest the findings before the independent Occupational Safety and Health Review Commission.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
Related:
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Feb 26, 2016 ... OSHA finds Middlesex contractor exposed workers to fall hazards after investigation of roofer's death at Parsippany jobsite S&S Roofing Inc., ...
workers-compensation.blogspot.com
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Aug 17, 2016 ... Investigation findings: OSHA initiated an inspection on April 25, 2016, after a compliance officer observed Furia Roofing employees working on ...
workers-compensation.blogspot.com
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Mar 8, 2011 ... Feb 9 2011, DISTRIBUTED for Conference of February 25, 2011. Feb 16 2011, Reply of petitioner Vaughan Roofing & Sheet Metal, LLC filed.
workers-compensation.blogspot.com
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May 20, 2013 ... For example, a roofing company may have 30 roofers doing the actual work but these workers are classified as "independent contractors" ...
workers-compensation.blogspot.com
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Monday, October 31, 2011
U.S. Chamber’s Hypocrisy Exposed: Do As I Say, Not As I Sue
New report shows hypocrisy of Institute for Legal Reform’s corporate board members that aggressively litigate while blocking justice for everyday Americans
As the U.S. Chamber’s Institute for Legal Reform (ILR) holds its annual summit – a strategy session on eliminating Americans’ access to the civil justice system – a new report exposes ILR’s corporate board members that hypocritically use the courts for their own gain against competitors, customers and even each other.
In its newest report, Do As I Say, Not As I Sue, the American Association for Justice (AAJ) exposes the hypocrisy of 10 ILR board members that regularly use the legal system to advance their own agendas, while at the same time advocating legislation that would close the courthouse doors to anyone who would hold them accountable for their own wrongdoing.
“These corporations, like all Americans, have a right to seek justice through the legal system,” said AAJ President Gary M. Paul. “What makes their actions shameful and hypocritical is that these companies are members of ILR’s board for the sole purpose of denying American workers and consumers this same right.”
One ILR board member highlighted in the report is Honeywell International, which has regularly taken competitors to court, but would prefer not to be held accountable for distributing defective body armor to law enforcement personnel across the country, or downplaying the dangers of asbestos exposure.
In return for its financial contributions to ILR, Honeywell has received policy and public relations help when its negligence has been uncovered. Four days after an Illinois jury delivered a multi-million dollar verdict against Honeywell for conspiring to hide the dangers of asbestos, ILR issued a press release stating that the decision “confirms a troubling trend in the State of Illinois where there is a hostile ligation environment.” Additionally, the Madison County Record, an Illinois-based propaganda-as-news outlet fully owned by ILR, featured an article headlined, “McLean County Continues Inching Closer to Becoming a ‘Judicial Hellhole.’”
The irony does not stop with Honeywell – AAJ’s report also highlights the litigation hypocrisy of ILR board members FedEx, Dow Chemical Company, General Motors Corporation, Caterpillar, State Farm, Koch Industries, Abbott Laboratories, Prudential and Johnson & Johnson.
Online ads will run this week on major news sites and blogs to promote the report, Do As I Say, Not As I Sue: Exposing the Lawsuit-Happy Hypocrites of U.S. Chamber’s Institute for Legal Reform, which can be found at www.justice.org/USChamber.
Tuesday, September 10, 2013
Christie Vetoes Bill That Would Have Prevented Some Truck Drivers From Being Treated As Independent Contractors
Gov. Chris Christie vetoed a bill that would have protected some truck drivers from being inappropriately classified as “independent contractors,” drawing criticism from one of the bill’s sponsors. “Because of the Governor’s veto, unethical companies will continue to skirt the law by gaming the system to avoid paying their fair share of taxes,” said Assembly Deputy Speaker John S. Wisniewski. “In doing so, they will also continue to deprive their drivers of Social Security, Medicare, Workers’ Compensation and Unemployment benefits.” This “is just the latest example of the Governor siding against hard working New Jerseyans. His veto keeps in place a system that is unfair to workers and unfair to those companies that play by the rules,” Wisniewski said. The bill passed by a 43-30-5 vote in the Assembly and a 21-17 vote in the state Senate, so lawmakers are unlikely to override the governor’s veto. Under the bill, “drayage,” or short-distance truckers, and parcel delivery drivers could not be classified as “independent contractors” unless the employers can show that the workers are truly independent. The businesses would have to demonstrate to the New Jersey Department of Labor and Workforce Development that the workers are free from their day-to-day control, that the service is outside the usual course or place of business and that the employee is customarily... |
Monday, October 24, 2011
Insurance Agent Charged With Theft of $255,000 of Work Comp Premiums
Attorney General Linda Kelly identified the defendant as Joseph A. Maurer, 58, of 2558 Welsh Road, Mohnton. Maurer owned and operated Commonwealth Professional Group, a former insurance agency located in Reading, Berks County.
According to the criminal complaint, Maurer is accused of taking more than $188,000 in premiums paid by four municipal governments, including Bally Borough and South Heidelberg Township, located in Berks County, along with Salisbury Township in Lehigh County and Earl Township in Lancaster County. The money allegedly paid to Maurer by all four municipalities was supposed to be forwarded to Pennprime Insurance Trust, of Harrisburg, as payment for workers compensation coverage.
Additionally, Maurer allegedly misdirected premium payments for at least five other policies purchased through his agency, totaling in excess of $67,000 that was supposed to be forwarded to Travelers Insurance and ACE American Insurance Company on behalf of various clients.
Maurer is charged with three counts of theft by failure to make required disposition of funds received, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines.
Maurer was preliminarily arraigned on October 12th before Reading Magisterial District Judge Phyllis J. Kowalski and released on $850,000 unsecured bail. He was also ordered to surrender his passport.
A preliminary hearing for Maurer is scheduled for November 9th, at 1:30 p.m., before Magisterial District Judge Kowalski.
The case will be prosecuted in Berks County by Deputy Attorney General John T. Dickinson of the Pennsylvania Attorney General's Insurance Fraud Section.
Tuesday, November 22, 2011
Gingrich Calls for More Child Labor, Calls Laws "Stupid"
Newt Gingrich's poll numbers are soaring for the US Presidential nomination. He has announced that he will offer radical proposals including the elimination of child labor laws. For decades child labor laws and penalties have been integrated into state workers' compensation acts acting as a safety deterrent to accidents.
Saturday, August 7, 2021
The 2021 Atlantic hurricane season poses an increased threat to workplace safety
A predicted record Atlantic hurricane season will create a perfect storm for increased occupational risks as the Sars-Cov2 Delta variant cases/hospitalizations/deaths are now surging, and climate change’s effects are mounting.
Sunday, December 22, 2013
Having a Servant Is Not a Right
AT the heart of the fracas surrounding the arrest of an Indian diplomat in New York who promised to pay her housekeeper $9.75 per hour, in compliance with United States labor rules, but instead paid her $3.31 per hour, is India’s dirty secret: One segment of the Indian population routinely exploits another, and the country’s labor laws allow gross mistreatment of domestic workers.
India is furious that the diplomat, Devyani Khobragade, was strip-searched and kept in a cell in New York with criminals. Retaliation from the newly assertive but otherwise bureaucracy-ridden nation was swift. American diplomats were stripped of identity cards granting them diplomatic benefits, and security barriers surrounding the American Embassy in New Delhi were hauled away. A former finance minister suggested that India respond by arresting same-sex partners of American diplomats, since the Indian Supreme Court recently upheld a section of a Colonial-era law that criminalizes homosexuality.
Notwithstanding legitimate Indian concerns about whether American marshals used correct protocol in the way they treated a diplomat, the truth is that India is party to an exploitative system that needs to be scrutinized.
I grew up in a middle-class household in India in the ’80s; my parents were schoolteachers, and our lifestyle was not lavish by any means. I received new clothes once a year; I don’t recall ever going to a restaurant; our family couldn’t afford a car, so we...
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Friday, February 14, 2020
Restoring Overtime
Members of Make the Road New Jersey, the immigrant and workers’ rights organization, delivered 500 letters from New Jersey workers to Gov. Phil Murphy today, urging him to take action to restore overtime rights for thousands of New Jersey workers.
Friday, December 10, 2021
Workers’ Compensation Benefits for Long COVID
Workers’ Compensation Benefits are available for those workers who have been exposed to COVID at work and contract disease and remain ill from Long COVID.
Thursday, October 16, 2014
Misclassification of Workers Yields Penalties
| Today's post is shared from daviddepaolo.blogspot.com/ A lot of employers try to lower their workers' compensation costs by fudging the numbers on their payroll reports, or paying workers "under the table," or misclassifying their jobs. Some employees take advantage of the no-fault design of the system to make claims that didn't occur, or inflate the severity of the claim. And there are some people on the claims side that try to "meet the numbers" by denying, delaying and otherwise obfuscating claim realities and legal obligations. But the penalties meted are different depending upon your place in the system and don't necessarily reflect the crime. For instance, WorkCompCentral did an analysis of California Department of Insurance fraud statistics. Between Jan. 1, 2013, and July 10, 150 individuals were convicted of defrauding workers' compensation carriers out of $8 million; $6.7 million, or 83.75%, came from 30 of the 77 convictions for premium fraud, such as misreporting payroll, classifying workers as independent contractors or operating without mandatory workers' compensation insurance. The CDI data does not have an estimated loss for the remaining 47 of those convictions, but if extrapolated against the "known" losses, then the total for that time period is $17.5 million of losses attributable to employers. $1.3 million out of that "known" $8 million is attributed to false claims filed by 67 of 73 individuals. Losses for the remaining six of those false claim cases were not included in... |
Wednesday, February 3, 2016
Fraud: Two South Jersey Corporations and Five of Their Officials Charged With Stealing Nearly $600,000
Acting NJ Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced today that two South Jersey corporations and five of their officials have been indicted in an alleged workers compensation fraud scheme that bilked nearly $600,000 from an insurance carrier.
Friday, July 30, 2021
NJ Division of Workers’ Compensation Announces Limited in-person Proceedings Effective August 16, 2021
Effective Monday, August 16, 2021, the N.J. Division of Workers’ Compensation shall implement a cautious return to normal operations with the resumption of limited in-person proceedings and an increase of on-site presence of workers’ compensation judges and court staff as set forth below.
Friday, November 15, 2013
Bill aims to protect workers wrongly labeled as independent contractors
The hunt for cheap labor has led to a rash of payroll fraud by companies scraping for any advantage in a sputtering economy, lawmakers say.
As a result, they say, American taxpayers are cheated out of millions, workers are underpaid and the injured are denied workers compensation. Lawmakers on Capitol Hill introduced legislation Tuesday, in conjunction with a Senate hearing, in an effort to curtail what they say has become a widespread practice that hurts not only workers but also law-abiding companies that can’t compete with the bad actors. The issue is common in fields such as those for janitors, homecare workers and cable installers. But it’s especially prevalent in the construction industry, where a company can save as much as 30 percent of its costs by wrongfully reporting its workers as independent contractors instead of employees. The practice is known as misclassification. In the most basic terms, if the employer is directing the worker, including setting his or her schedule, telling the worker what to do, when to do it and how to do it, the worker should be listed as an employee, according to federal rules. By listing workers as independent contractors, companies can avoid paying insurance, taxes and overtime. It also shields companies from responsibilities of having to protect those working for them. Matt Anderson of Ira Township, Mich., needs only to look at his left hand to see the potential... |
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