Articles Posted in Workers’ Compensation

Failure to carry workers’ compensation coverage for employees in Massachusetts is currently only a misdemeanor. Massachusetts Attorney General Martha Coakley has recently pushed for more serious punishment against employers who do not provide workers’ compensation for their employees. Under Coakley’s proposed bill, failure to carry workers’ compensation will be a felony in Massachusetts, which is the same charge for workers’ compensation fraud. Sponsored by Senator Katherine Clark (D-Melrose) and Majority Whip Ronald Mariano (D-Quincy), this new bill would not only make the punishment consistent with workers’ compensation fraud, but would also penalize the employer with the same punitive measures as workers’ compensation fraud, which is currently five years of prison or a fine of $10,000.

Proposed within a legislative agenda of nine new bills, Coakley commented that: “These bills tackle a number of important challenges in our Commonwealth, including protecting public safety…and more effectively combating fraud and corruption…Our office is working to address these challenges in a comprehensive way, and these new laws would assist our efforts and others across the Commonwealth.”

Other bills within her agenda include legislation to prevent unnecessary foreclosures, human trafficking legislation, economic crime legislation, corporate manslaughter, metals dealing, and legislation against methamphetamine drug trafficking. For a complete list of the proposed legislation, visit the press page released by Coakley’s office: AG Coakley Announces Legislative Agenda.

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Massachusetts Attorney General Wants Tougher Workers’ Comp Penalties, Insurance Journal, January 31, 2011 Continue reading

Here in the Bay State, authorities have recently updated the paperwork requirements for workers’ compensation for some out-of-state contractors doing business in Massachusetts. The Division of Industrial Accidents started requiring a Form 154 this summer to verify workers’ compensation insurance for businesses that had no physical location in the state.

However, the form reportedly subjected workers’ comp insurance agents, carriers, and their clients to fine and stop work orders, because it required a 10-day advance notice of cancellations, a requirement that many insurers are not able to issue. Safety regulators apparently agreed to drop the requirement last month.

According to the Massachusetts Department of Revenue website, out-of-state contractors undertaking a construction contract in Massachusetts are also required to deposit with the Commissioner of Revenue a sum equivalent to 6.25% of the total amount of the contract. Alternatively, they may provide the Commissioner with a Guarantee Bond equivalent to 6.25% of such total amount.

Source: Massachusetts Revises Workers’ Comp Paperwork Snafu, Insurance Journal, November 5, 2010 Continue reading

A Freetown man and former Massachusetts prison guard is accused of worker’s compensation fraud. Prosecutors allege that the 45-year-old man collected over $50,000 in worker’s comp benefits between January 2009 and Mach, during which time he ran a half-marathon and a full marathon.

He’d apparently sustained a work-related injury in July 2008.

The man has pleaded not guilty to the fraud charges and was released on personal recognizance at his arraignment several weeks ago in Suffolk Superior Court. The charges reportedly resulted from anonymous tip.

Source: Mass. prison guard accused of worker comp fraud, Boston Herald, October 27, 2010 Continue reading

Several towns in Massachusetts, including Brockton, Pittsfield, and New Bedford, will receive thousands of dollars in damages from CVS, which was found to have overcharged state residents for prescription drugs under the workers’ compensation insurance system. The Division of Health Care Finance and Policy uses the same methods to price prescription drugs for workers’ compensation claims as for Medicaid.

Massachusetts Attorney General Martha Coakley announced the payments last Thursday after investigating allegations that the pharmacies were overcharging residents. The Attorney General filed last month in Suffolk Superior Court.

CVS will pay $1.35 million of the Commonwealth of Massachusetts on top of $1.3 million to the towns and cities impacted. Boston will receive $60,000 in damages, while Brockton will get $52,000. The communities should get their checks later next month.

Source: Brockton to receive more than $50,000 in CVS overcharges, Enterprise News, October 1, 2010 Continue reading

A settlement has been reached with a Stoughton, Massachusetts strip club that allegedly misclassified dancers and massage therapists as independent contractors, denying them overtime pay and workers’ compensation protections.

According to reports, roughly 50 women have asked to share in the settlement, which set aside $400,000 for the women and $200,000 for the attorneys who litigated on their behalf. An additional 100 woman who worked in the club between December, 2006 and September, 2009 reportedly may be eligible to share in the settlement.

Several other Massachusetts clubs have been sued or are being sued over similar disputes. A Suffolk County judge reportedly ruled last year that plaintiffs could seek damages from a Chelsea, Massachusetts club. Some clubs have now reclassified dancers and massage therapists as employees and paid them minimum wage. Misclassifying workers to avoid paying workers’ compensation is a common issue in other industries as well.

Governor Deval Patrick recently passed an amendment to Massachusetts’ workers’ compensation statute that allows any three private citizens to file a civil suit against employers who fail to follow workers’ compensation laws.

The amendment incentivizes plaintiffs with a monetary award, compensatory and liquidated damages, and costs and attorney’s fee. The plaintiffs will be required to provide the employer and any insurer with a notice of intent to sue 90 days prior to the start of the action.

The statute also provides for a six year statute of limitations, which is twice as long as most other wage-related claims. Experts predict that this will put additional pressure on Massachusetts employers to comply with workers’ compensation laws and correctly classify workers.