Federal lawsuit filed after staged falls to collect funds
- A federal lawsuit has been filed by a New York-based insurance company alleging a statewide scheme of staged construction site accidents.
- The company, Tradesmen, has received what it believes is more than 650 fraudulent workers’ compensation claims in the last four years.
- Medical professionals, attorneys, and construction workers are all part of the alleged scam to file false claims that can be in the millions of dollars.
- A lawsuit filed by Tradesmen Insurance alleged medical professionals reportedly took advantage of Spanish-speaking immigrant workers to employ them to become involved in the false claims.
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Workers’ comp rates less in Alaska
- Alaska’s workers’ compensation costs continue to decrease for Alaska employers amid improved workplace safety for Alaska’s workforce.
- A study from The National Academy of Social Insurance said that Alaska’s workers’ compensation costs continue to fall for local employers.
- According to the study, Alaska’s estimated workers’ compensation costs decreased by 35.9%, the largest decrease in the nation. Other states seeing a decrease in the report were Florida (33.6%), South Dakota (31.8%), and California (31.1%).
- The study said 47 states saw a decrease in employer costs per $100 of covered wages for workers’ compensation.
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Oklahoma construction workers misclassified
- Oklahoma-based Future Inc., a dirt work contractor serving commercial, industrial, and residential clients, misclassified 31 construction workers employed to complete major projects in a multi-state area as independent contractors, which can affect workers’ comp benefits.
- Future Inc. violated federal law by failing to pay the required time and one-half of its employees’ hourly wages for hours worked over 40 per workweek.
- The Labor Dept. found more than $35.5 million in owed wages for construction industry workers. On Jan. 10, 2024, the department published a final rule, effective March 11, revising the department’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act. Learn more about the final rule.
- Investigators recovered $49,940 in owed wages and $49,940 in liquidated damages to 31 workers.
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