Florida man arrested for major workers’ comp fraud

• Florida resident Gustavo Antonio Munguia was arrested for workers’ compensation premium fraud and Grand Theft. Munguia, the owner of American Iron Group Corp. was actively concealing his payroll to avoid paying a higher workers’ compensation premium.
• According to Travelers Property and Casualty Company of America, American Iron Group Corp would have been assessed approximately $253,000 in additional premium charges had the additional payroll been reported.
• Munguia, on behalf of American Iron Group Corp, failed to notify his workers’ compensation carrier of significant payroll changes. Detectives were able to determine during the policy period, Munguia collected more than $3.1 million in labor costs paid from contractors to his company.
• According to Travelers Property and Casualty Company of America, had the additional payroll been reported, American Iron Group Corp would have been assessed an additional $253,000 in premium charges.
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Uber and Lyft drivers get boost lift in Washington

• A new bill in Washington state provides death benefits under the state workers’ compensation system for Uber and Lyft drivers and their families regardless of whether they have a passenger or are waiting to receive a trip.
• The existing law does not provide drivers with survivor death benefits if a driver is killed while logged into one of the platforms but not driving a customer.
• Five rideshare drivers have been murdered in Washington state since 2020, according to the Drivers Union group affiliated with Teamsters 117
• The bill passed out of the state Senate on Wednesday in a 32-17 vote. It passed in the House on a 57-40 vote on Feb. 13. The bill now heads to the governor’s desk.
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NJ Supreme Court rules on Workers’ Compensation Act

• A plaintiff in a New Jersey court alleged that the defendants misrepresented their relationship and ownership structure and submitted fraudulent payroll records to reduce the premiums for workers’ compensation insurance.
• The jury awarded different compensatory and punitive damages against the various defendants.
• The trial court determined that all of the defendants should be jointly and severally liable for the $756,990 awarded as compensatory damages.
• The New Jersey Supreme Court found that the Comparative Negligence Act trumps the Insurance Fraud Protection Act and prohibits joint and several liability in these circumstances.
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Kansas to host 50th annual, workers’ comp conference

• The Kansas Department of Labor will host its 50th Annual Workers Compensation Seminar on September 17-18.
• The Annual Workers Compensation Seminar provides attorneys, and other stakeholders practicing in the field, the opportunity to get current information on workers’ compensation and to earn continuing legal education credits.
• In addition, the seminar provides continuing medical education credits for nurses practicing in the area and credits for certified case managers.
• Topics include legislative and case law updates, occupational medicine, and ethics training, as well as other medical and computation classes that qualify participants for mandatory educational credits.
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