Court: Carrier Waived Defenses by Not Serving Pre-Hearing Statement on Claimant’s Lawyer
- The Appellate Division of the New York Supreme Court ruled Oct. 29 in Matter of McDonell v CJ Banach Inc. that an employer and its carrier waived their defenses to a back-injury claim because they didn’t serve their pre-hearing conference statement on the claimant’s attorney.
- The claimant hurt his lower back in a slip at work and filed a claim in December 2023. The carrier controverted it and filed its pre-hearing conference statement on time, but didn’t serve it on claimant’s counsel. The carrier blamed confusion over the name of the claimant’s law firm and argued the statement was visible to all parties in the electronic case file.
- The court said a Workers’ Compensation Board rule requiring service is mandatory, so the board had no discretion to overlook the failure. Lack of prejudice to the claimant and substantial compliance don’t excuse it. The only exception is an affidavit from the carrier’s legal representative showing good cause, good faith and due diligence, and none was submitted.
- The court affirmed the board’s March 2025 decision and its July 2025 denial of reconsideration and full board review.
Houston Will Require Workers’ Comp Coverage and $18 Wage for Tax-Break Projects
- The Houston City Council approved new rules on Oct. 28 requiring businesses that receive city tax abatements to provide workers’ compensation for injuries, health insurance and an $18 minimum wage, or prevailing wages for construction work. The rules also strengthen and expand apprenticeship requirements.
- Contractors with a recent history of OSHA violations or wage theft will be barred from tax-abatement construction projects.
- An amendment from council member Fred Flickinger to limit the OSHA sanctions to violations in the Texas, Oklahoma and New Mexico region failed 8-8.
Union: Trucking Firms Misclassifying Drivers Cut Labor Costs Up to 30%
- Teamsters Canada has accused some Canadian trucking companies of misclassifying drivers as independent contractors to reduce their labor costs reduce labor costs by up to 30% compared to employers that follow the rules.
- While hiring legitimate independent contractors is legal, misclassifying employees as contractors to avoid employment obligations violates federal labor law. Monette said newcomers are especially vulnerable to misclassification, and labor advocates allege some companies favor temporary foreign workers and recent immigrants who are less likely to speak up about poor conditions.
- The Canadian Trucking Alliance’s Jonathan Blackham said the industry is splitting in two: companies that invest in people and equipment, and a growing segment with little regard for labor practices, tax compliance, safety and training. Drivers face lost training and support, unpaid time and pressure to accept unsafe conditions.
- Experts say enforcing existing law would have a major effect. Provincial steps include Ontario’s planned standardized entry-level curriculum, Quebec’s mandatory training since December 2025, Alberta’s apprenticeship-style licensing and tougher enforcement in Manitoba.