Pushback on New Contractor Rule

New rules for employers could be costly

  • The U.S. Department of Labor officially adopted a rule that makes it more difficult for employers to classify workers as independent contractors, a change that could impact many industries that would now have to boost their workers’ comp insurance.
  • The U.S. Chamber of Commerce quickly released a statement from Vice President of Workplace Policy Marc Freedman opposing the rule and threatening litigation.
  • Sen. Bill Cassidy, a Republican from Louisiana, said he would try to repeal the rule.
  • The Department of Labor said the new rule does not target any one industry, but companies such as Uber and Lyft could feel the biggest impact.
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Workers’ comp decrease in Conncecutut

  • Connecticut will receive a nearly 10% decrease in rates for workers’ compensation insurance beginning on January 1, 2024.
  • The Connecticut Insurance Department has approved an annual workers’ compensation rate filing for 2024 with a decrease of 9.8% in voluntary market loss costs and a decrease of 10.5% in assigned risk plan rates.
  • This is the 10th consecutive year that the department has approved rate decreases.
  • This trend reflects a noticeable decline in workplace injuries and filed claims, resulting in cumulative savings of more than $300 million in reduced premium expenses for businesses.
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Restaurant owners charged for failing to have workers’ comp

  • Two restaurant owners were charged this month with failing to provide required workers’ compensation insurance coverage for employees working in their restaurants.
  • Giovanni Rubano and Hilario Taveras, both of Waterbury, Connecticut, were arrested and charged with Criminal Liability and Noncompliance with Insurance Requirements.
  • Rubano, who owned the now-closed Vintage 471 Restaurant in Watertown, failed to carry Workers’ Compensation insurance coverage for employees working in the restaurant.
  • Taveras, the owner of Via Al Paraiso in Waterbury, failed to carry Workers’ Compensation insurance coverage for employees working in the restaurant from December 1, 2018, through October 24, 2022.
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Auto parts worker suffers burns in Michigan

  • An auto parts worker was burned and airlifted to the University of Michigan hospital after an explosion and fire at the Meridian Magnesium Products factory in Eaton Rapids.
  • The worker, Mark Gillespie, was reported to be in stable condition after he was burned on 50 percent of his head and body in the incident.
  • Meridian—a global manufacturer of die-cast automotive parts with 1,600 employees worldwide based in Strathroy, Ontario—has not stated the cause of the accident.
  • The Meridian factory has been cited 18 times by OSHA for safety violations, the majority of which are labeled “serious.”
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