NY WCB Chasing NFL's Patriots For Payment

The New York State Workers Compensation Board is seeking a judgment against the NFL’s New England Patriots, charging that the franchise failed to carry WC insurance between June 1, 2023 and Sept. 22, 2024.
WCB says the team has a New York payroll and that under state law, out-of-state employers with employees or subcontractors working in New York are required to carry a state workers’ compensation insurance policy.
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Five Orlando residents have been indicted for a scheme to evade workers’ compensation requirements and payroll taxes in the construction industry.
According to the indictment, the defendants established companies that purported to supply labor for construction contractors. Florida law requires any business that engages in construction work to secure and maintain workers’ compensation insurance. The defendants applied for workers’ compensation insurance policies to cover a few employees and a minimal payroll.
The defendants then entered into agreements with construction work crews, often consisting of undocumented aliens, pursuant to which the defendants submitted paperwork to construction contractors to obtain work for the work crews, falsely representing that the workers were the companies’ employees. The workers then performed construction work under the supervision and direction of the contractors.
Among their alleged activities, the defendants cheated WC insurers out of at least $28 million in premiums by under-declaring payroll size.
The case was investigated by the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, and the Florida Department of Financial Services as part of a continuing investigation on the use of shell companies and “ghost” employees in the construction industry.
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Pennsylvania’s state Senate has given final approval to legislation to move workers’ compensation benefit payments from paper checks to direct deposit.
Under the bill, individuals can request funds be deposited to an account of their choosing. Insurers will be permitted to offer paper checks as a payment option as long as the individual has a bank account that can accept direct deposit.
The reforms were unanimously recommended by the Workers’ Compensation Advisory Council.
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Workers’ compensation business lines in the third quarter failed to see the year-over-year premium renewal rate increases shown in all other major commercial lines of business, according to Ivans, a division of Applied Systems.
WC premium renewal rates averaged -1.28% in Q3 2024, a slight improvement from -1.29% in Q2 2024, with August seeing the lowest rate at -1.39% and July the highest at -1.22%.
Umbrella premium renewal rates averaged 8.56% in Q3 2024, down from 9.62% in Q2 2024, with the lowest rate in July at 8.50% and the highest in September at 8.60%.
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Data compiled by Risk Strategies reveals that wage inflation, reduced rates and increased size of primary claims could lead to workers’ compensation premium increases despite a softer market.
Risk Strategies said companies with good loss experience won’t likely see much change while those with claims over the higher threshold may see higher premiums after the National Council on Compensation Insurance (NCCI) increased the size of primary claims to up to $18,000.
The consulting firm recommends several actions to address claim frequency and severity, including: Reducing medical treatment costs through effective contracting; Establishing accurate outstanding claim reserves; and, Developing a robust return-to-work program.
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