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July 19, 2010

FedEx Ground and Massachusetts Reach Settlement in Alleged Misclassification of Drivers

Our workers’ compensation attorneys have learned that FedEx Ground has agreed to pay the Commonwealth of Massachusetts several million dollars to settle allegations that they misclassified drivers as independent contractors. According to the attorney general, FedEx’s classification of drivers denied the state workers’ compensation, payroll taxes, and unemployment assistance contributions, as well as gave the company an unfair competitive advantage.

The $3 million awarded will go to the state’s general fund and to the thirteen drivers named in the suit. There is another lawsuit on behalf of other drivers that is still pending.

The company denies liability in the settlement with the state.

Source: Mass. reaches $3M settlement with FedEx Ground, Bloomberg BusinessWeek, July 15, 2010

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July 12, 2010

Massachusetts Workers’ Compensation Rates To Be Reduced by 2.4 Percent

Despite a request from the Worker’s Compensation Rating Inspection Bureau of Massachusetts to raise rates by 4.5 percent, Attorney General Martha Coakley has reviewed the industry’s proposed rates and determined that current rates will need to be reduced by 2.4 percent.

Coakley says the proposed rate hikes would have cost employers tens of millions in additional premium payments. In addition to this year’s rate reductions, Massachusetts workers’ compensation insurance companies will be subject to another rate review and possible rate cuts in 2011.

The settlement still needs final approval from the state’s commissioner of insurance. If approved, the lower workers' comp rates will be in effect next fall. The hope is that lower costs will spur job growth across the state and protect employers from overpaying.

Source: Massachusetts: Attorney general nixes insurers' request for increase, RiskAndInsurance.com, July 8, 2010

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July 7, 2010

Massachusetts Workers’ Comp Attorneys Discuss Fraud Case

A 34-year-old Belmont man faces charges of workers’ compensation fraud and larceny in excess of $250. He reportedly suffered a work injury in August, 2006 while working as a heavy machinery mechanic in Milford, Massachusetts. He had surgery for that injury the following year and collected workers’ compensation benefits of about $857 a week between April 2007 and August 2007.

However, the general contractor of the Milford work site discovered that the man was also allegedly employed as a subcontractor for another construction company and earned almost $10,000 while out on disability. Investigators alleged that the construction worker collected $14,000 in workers’ compensation benefits to which he was not entitled.

The man was arraigned and is due back in court later this month for a pretrial conference. His case is being investigated by the Insurance Fraud Bureau of Massachusetts (IFB).

Source: Belmont man facing fraud charges in Bay State, Citizen.com, June 23, 2010

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July 1, 2010

Massachusetts Workers’ Comp Lawyer Discusses Liberty Mutual Ruling

The Massachusetts Appeals Court has ruled that Liberty Mutual was right to deny workers’ compensation benefits requested by a self-employed carpenter. The solo proprietor had severely injured his hand in 2005.

An administrative judge at the Industrial Accident Reviewing Board had earlier ruled in favor of Liberty Mutual, and the decision upholds that ruling. The carpenter had reportedly bought a workers’ compensation policy from Liberty Mutual in 2001, when Massachusetts sole proprietors could not cover themselves as employees under a workers’ compensation policy.

However, that changed in 2002, when Massachusetts began allowing sole proprietors to buy coverage for themselves as employees through a policy endorsement. Because the carpenter did not request the change to his workers’ compensation policy, the insurance company denied his request for benefits and the Appeals Court upheld that decision.

Source: Liberty Mutual Wins Dismissal of Claim for Injured Mass. Carpenter, ClaimsJournal.com, June 25, 2010

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June 24, 2010

Brockton Man Suing FedEx for Misclassification of Workers

A Framingham lawyer has filed a lawsuit against FedEx on behalf of a former FedEx driver from Brockton, Massachusetts. The former driver worked at the company’s West Bridgewater terminal and claims he was misclassified as an independent contractor instead of an employee so that the shipping company could avoid paying workers’ compensation and other benefits.

The attorney says he already filed a proposed class action lawsuit against FedEx in 2008, but he’s waiting for a judge to decide on that class action request.

He’s also filing a series of individual lawsuits so that the former multi-route FedEx Ground drivers don’t miss out due to statues of limitations. Two Boston lawyers are apparently representing single-route drivers in other cases.

Source: Former FedEx driver from Brockton sues over being classified as an independent contractor, Patriot Ledger, June 22, 2010

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June 8, 2010

Court Rules in Favor of Airline in Massachusetts Personal Injury Suit

A former flight attendant for Delta Air Lines who sustained severe back injuries when an aircraft came to an abrupt stop on the runway attempted to file a personal injury suit against the airline. After several spinal surgeries, she was still unable to return to work as a flight attendant.

The 1st U.S. Circuit Court of Appeals upheld the dismissal of her personal injury suit. Massachusetts law states that an employer is entitled to immunity from personal liability when the injury occurs in the scope of employment.

The claimant asserted that while she had been employed by Delta, she ended her employment relationship when she went to work for Song Airlines. However, since Song Airlines is a Delta subsidiary, the court found that she was still under Delta’s control. Therefore, the former employee was provided workers’ compensation as the sole remedy for her back injuries.

Source: Employment relationship with airline derails personal injury suit, RiskandInsurance.com, June 3, 2010

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March 4, 2010

OSHA Fines Danvers Contractor for Asbestos, Other Hazards

The Occupational Safety and Health Administration has proposed $136,000 in fines against a Massachusetts contractor that was working on a project involving the removal of asbestos-containing material at Boston Beth Israel Hospital last fall. OSHA inspectors discover 19 alleged safety violations, among them a failure to conduct an initial asbestos exposure assessment, a lack of protective clothing, and several respirator-related deficiencies.

Asbestos exposure is a serious health hazard to workers. Research has shown that prolonged exposure without appropriate safeguards in place can lead to lung cancer and other diseases.

The Danvers-based company received one willful citation with a $55,000 proposed fine for not establishing a regulated work area. OSHA also issued the company 17 serious citations totaling $80,000 in fines for the other safety issues and one other-than-serious citation with a $1,000 fine for not providing injury and illness logs in a timely fashion. The company has 15 business days from receipt of the citations to comply, participate in an informal conference with the OSHA area director, or contest the findings.

Source: New England Contractor Fined for Asbestos Hazards, Respiratory Deficiencies, OHSOnline.com, March 3, 2010

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February 15, 2010

Study Examines Workers' Comp Recipients & Back Surgery

According to a new study by researchers at Massachusetts General Hospital, patients receiving workers' compensation who are treated for back pain related to a herniated disk experience better results with nonsurgical treatment. Depending on the individual case, nonsurgical treatment options can include pain-relieving drugs, home exercise, and/or physical therapy.

Overall, patients tend to experience better results from surgery up to two years after treatment, but those receiving workers' compensation received "no added benefit" from surgery. Those patients who underwent surgery had pain and physical function that was similar to those who'd had nonsurgical treatments. The percentage of patients returning to work or placed on disability was similar across the board, regardless of surgery or nonsurgical treatment and regardless of workers' compensation status.

Sciatica related to herniated disks is a common reason for workers' comp claims and it can be disabling.

Source: Workers' Compensation Patients Benefit Less from Back Surgery, ClaimsJournal.com, February 3, 2010

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January 14, 2010

Former Framingham Man Pleads Guilty to Workers' Compensation Fraud

The Boston Globe reports that a 32-year-old former TJX employee and Massachusetts resident has pleaded guilty to charges he lied under oath and schemed to falsely collect workers' compensation benefits. The man has since moved to Florida.

According to a press release from the attorney general's office, he was arraigned last May and pleaded guilty in December to two counts of workers' compensation fraud.

The defendant received a one year prison sentence along with three years probation. He was also ordered to pay nearly four thousand dollars in workers' compensation benefits he allegedly collected but not entitled to.

Source: Man sentenced for falsely collecting workers' compensation, Boston Globe, December 17, 2009

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January 4, 2010

Massachusetts Teacher Will Receive Workers’ Comp for Ski Trip Injury, Rules Court

The state’s highest court ruled that a Peabody High School teacher is entitled to receive workers’ compensation benefits for injuries she sustained while voluntarily chaperoning a school ski trip. The teacher sought workers’ comp coverage for her medical expenses following a 2004 injury on a ski trip to Vermont. Her employer denied that request, saying her injury occurred while the teacher participated in a voluntary recreational activity.

While two administrative judges uphold the denial of benefits, the state Department of Industrial Accidents and Massachusetts’ highest court awarded the teacher her workers’ compensation benefits on appeal. The judge concluded that a teacher who acts as a volunteer chaperone to students participating in a school-sponsored activity “is acting in the course of her employment” and in her capacity as a teacher, because she was overseeing the well being of students.

The injured teacher’s attorney said his client used sick time for surgeries and physical therapy, so she filed the claim to recover sick time and any co-payments not covered by her medical insurance.

Source: Massachusetts Court Upholds Workers' Compensation for Teacher On School Trip, ClaimsJournal.com, December 15, 2009

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December 29, 2009

Massachusetts Rules No Workers' Compensation for Church Custodian

In 1999, a church custodian was injured falling off a ladder and later received a total knee replacement in 2003. By the summer of 2004, he was laid off and could no longer work. The custodian filed a workers' compensation claim in December of that year, roughly five years after the original accident.

Massachusetts law provides a four-year window for filing workers' compensation claims, though it's recommended that workers file claims as soon as possible after their workplace injury. The custodian appealed, arguing that he was not actually "disabled" until several years after the original accident.

However, a Massachusetts Appeals Court ruled that he will not be allowed to collect benefits, because the statute of limitations had expired. A review of medical records also revealed that there was no documentation of a work-related injury.

Source: Massachusetts Court: No Workers' Comp for Custodian's 1999 Injury, ClaimsJournal.com, December 23, 2009

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October 8, 2009

Sears Settles With Former Disabled Worker for $6.2M

A former employee for Sears, Roebuck and Co. was injured on the job, took workers' compensation leave, and later learned that he'd been terminated when his wife's discount card was denied. That incident resulted in a lawsuit filed by the United States Equal Employment Opportunity Commission (EEOC) in 2004.

The suit accused the company of illegally firing a disabled worker and failing to make reasonable accommodations that would have allowed the injured service technician to return to work. In response, Sears Holdings Corp. has agreed to pay $6.2 to settle the lawsuit.

The three-year consent decree requires the company to abide by the Americans with Disabilities Act (ADA), amend its workers' compensation leave policy, provide reports to the EEOC outlining its workers compensation practices, and train employees on the ADA.

Sears settles lawsuit with disabled former worker for $6.2M, Chicago Sun-Times, September 29, 2009

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September 22, 2009

Massachusetts Introduces Website for Verifying Workers' Comp Coverage

Our Massachusetts workers' compensation attorneys have recently learned about a new website that gives the public the ability to check if a business has workers' compensation insurance. According to the Division of Industrial Accident, over $53 million has been paid out of the Workers' Compensation Trust Fund in the past decade to pay injury claims of workers who were employed by businesses that did not have workers' compensation.

The goals on the new online database are to give homeowners the ability to verify that hired contractors have workers' compensation insurance, allow medical providers to check coverage when treating an injured worker, and let general contractors check that all subcontractors are adequately insured. In addition, state and municipal officials can ensure worker's compensation compliance with licensing, permitting, and awarding public contracts. The site also helps protect employers from agent and broker fraud because they can ensure their own cover.

In addition to Massachusetts, 36 other states have similar databases.

Massachusetts Allows Public to Verify Workers' Comp Coverage, InsuranceJournal.com, September 17, 2009

Web Resource
Massachusetts Department of Industrial Accidents’ (DIA) online Proof of Coverage Verification Application

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June 11, 2009

Roxbury Man Sues RCN for Misclassifying Workers

A Roxbury man has filed a proposed class-action lawsuit against RCN Corp., claiming the broadband company misclassified him and as many as 1,000 other United States installers. According to the lawsuit filed in Boston last week, Fritz Elienberg was employed as an "independent contractor" from 2005 until he was fired in February.

Elienberg claims he and the other "independent contractors" were misclassified so that the company could deny them insurance benefits, overtime, and other benefits. He was also denied compensation to cover medical bills for an injury he sustained on the job.

The lawsuit claims that his employer violated the federal Fair Labor Standards Act and Massachusetts' independent contractor and overtime laws. RCN provides cable TV, internet, and phone services in Boston and in 16 other Massachusetts communities. Elienberg's attorney says that an increasing number of companies are misclassifying workers as independent contractors to avoid paying workers compensation, Social Security taxes, and other expenses.

Man sues RCN for ‘abuse’ of contract workers, Boston Herald, June 2, 2009

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April 27, 2009

Lawrence Man Pleads Guilty to Workers' Compensation Fraud

In Suffolk Superior Court, a 39-year-old man pled guilty to workers' compensation fraud, 23 counts of unemployment fraud, and two counts of larceny over $250. Rigoberto Tellez was sentenced to two years probation and ordered to pay restitution in the amount of $14,398.

Tellez suffered injuries after he fell at work on December 10, 2005. He received workers' compensation benefits from December 2005 to May 2006, when he was cleared for light duty work following an independent medical examination (IME). His employer offered him work that met the IME's criteria, but he refused and filed an employee claim through the Department of Industrial Accidents, which ordered his employer's insurance company to pay Tellez benefits retroactively from June 2006.

At the same time, Tellez filed an Employee Earning Report stating that he was entitled to workers' compensation and did not have any other income coming in. However, he was also collecting unemployment benefits in addition to workers' compensation for part of this time.

MA Man Sentenced For Fraudulently Collecting WC Benefits, WorkersCompensation.com, April 15, 2009

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January 8, 2009

Massachusetts Among Top 20 States for Workers’ Compensation

IndustryWeek recently compared workers’ compensation costs and benefits across the United States and listed Massachusetts in its top 20 states for workers’ compensation. Massachusetts was the only New England state to appear in the top 20, while several western and Midwestern states made the cut.

IndustryWeek’s rankings included the workers’ compensation premium per worker, based on the Insurance Information Institute, the average benefit payment per capita-total state workforce, among other factors.

According to Deborah Talbot, president and CEO of Health Resources Corporation in Woburn, Massachusetts, the rates, benefits, and awards vary widely according to state, a statement that was consistent with the findings of IndustryWeek’s workers' compensation analysis.

Workers' Compensation: Expenses & Awards ARE an Important Consideration for Manufacturers, IndustryWeek, December 9, 208

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September 29, 2008

Hull Fireman Fights for His Job Back After Injury

The Massachusetts Appeals Court upheld a discrimination award to a man who had worked as a firefighter in Hull but says he was not allowed back to work after an injury. Donald A. Gillis injured his neck when he fell off a truck in 1985.

He was 58 when asked for his job back in 1994. Now at 72, Gillis is too old to work as a firefighter per Massachusetts state law. The mandatory retirement age for Massachusetts firefighters is 65.

In 2000, the Massachusetts Commission Against Discrimination awarded Gillis $174,318.75 in lost wages, damages for emotional distress, and legal fees. The town of Hull appealed that decision, which the appeal court upheld earlier this month. A lawyer for the town of Hull said it plans to appeal the judgment again.

Fireman who tried to keep job wins in court; town to appeal, Hull Times, September 11, 2008

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August 4, 2008

Framingham Group Aims to Help Immigrant Workers Denied Overtime and Workers’ Compensation

In Framingham, Massachusetts a new organization called the MetroWest Immigrant Worker Center has opened its doors on Union Avenue. The local group formed last fall and has been conducting outreach work through local churches attended by immigrants. Director Diego Low says the organization hopes to assist workers in pursuing their rights and navigating Massachusetts’ legal system.

For instance, the employer of a group of local immigrant workers denied the workers their right to workers’ compensation and another refused to pay overtime for extra hours worked. In one case, a worker was severely injured on the job but did not challenge his employer for fear of repercussions. These are the types of cases that the MetroWest Immigrant Worker Center will take on.

The Center for Immigration Studies estimates that about 5% of the United State’s workforce is in the country illegally. Despite what many people believe, illegal workers are still entitled to be paid for their work and any overtime. They are also entitled to workers’ compensation if they are injured on the job.

The MetroWest Immigrant Worker Center recently received a $40,000 grant from The Boston Foundation, which the Center hopes to use for education and advocacy work.

If you or a family member were denied workers’ compensation, then our Massachusetts workers’ compensation lawyers can help. Our team of experienced attorneys will help you navigate the legal system and ensure that you get appropriate medical treatment.

New group aims to protect immigrant workers, WickedLocal.com, July 24, 2008

Related Web Resource

Compliance Assistance: Hispanic Employers and Workers, osha.gov

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