Former Postal Employee Pleads Guilty to Workers’ Comp Fraud

February 12, 2024

North Carolina man who worked at post office commits fraud

  • Franklin Sullivan, Sr., of Mooresville, N.C., pleaded guilty to workers’ compensation fraud for a job-connected injury.
  • Sullivan, Sr. began to receive workers’ compensation benefits administered by the U.S. Department of Labor’s Office of Workers’ Compensation Programs for employees covered by the Federal Employees’ Compensation Act.
  • Court documents show that, on multiple occasions, Sullivan, Sr. made false statements and material misrepresentations regarding his physical abilities and medical restrictions.
  • Among the false claims Sullivan made were that he was unable to sit for long periods of time, that he could only drive short distances, that he needed to use a cane when he walked, and that he was unable to travel or engage in hobbies and other recreational activities due to his medical condition.
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Returns to the totality-of-the-Circumstances test for worker classification

  • The U.S. Department of Labor issued its long-awaited final rule regarding worker classification under the Fair Labor Standards Act (FLSA ).
  • The final rule, which takes effect March 11, 2024, outlines the department’s new test for determining whether a worker is an employee or an independent contractor for purposes of the FLSA.
  • Misclassification is a critical issue in the franchising world, where the unique relationship between a franchisor and a franchisee can sometimes lead to allegations that the two are in an employment relationship.
  • While franchising is built on the intent not to create such a relationship, a franchisor that exerts too much control may find itself the target of such allegations and at risk of being required to provide overtime, workers’ compensation, and other benefits to its franchisees.
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Legislation in Missouri would give employees more freedom to retrain patients

  • Missouri State Rep. Justin Hicks, a Republican from the 108th District, introduced a bill that would prevent hospitals from requiring employees to restrain patients if they fear for their safety.
  • The nation’s largest association of registered nurses, National Nurses United, said improved federal legislation is the answer to heighten standards within the industry overall, with better staffing for example to more effectively respond to violent patients.
  • The president of the Missouri Hospital Association voiced their concerns about the legislation, claiming it could make it harder for hospitals to care for patients.
  • A recent survey by the association shows more than half of hospital nurses have seen an increase in workplace violence.
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U.S. defense base contractors overseas get workers’ comp boost

  • New workers’ compensation defense is available for contractors who support the United States Armed Forces at bases overseas.
  • A Defense Base Act insurance program was launched by K2 OCONUS, a division of K2 Insurance Services, with Nationwide’s excess & surplus/specialty business serving as the underwriter for this new partnership.
  • The program will provide workers’ compensation coverage for U.S. government contractors working overseas, especially in high-risk areas.
  • The program is now live and open to U.S. government contractors working abroad in any industry, including construction, engineering, logistics, security, and humanitarian aid.
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