State Warns Against Workers’ Comp Fraud Schemes
- The North Carolina Industrial Commission issued a warning about a fraudulent scheme targeting workers’ compensation claimants across the state.
- These scams use impersonated professionals and fake hearings to steal money from injured workers.
- The fraud actively targets Spanish-speaking residents through phone calls, social media, text messages, or emails.
- Officials advise claimants never to make payments in exchange for benefits or settlements.
New Jersey Adopts Stricter Worker Classification Rules Impacting Compensation
- New Jersey has adopted strict “ABC test” rules for worker classification, making it harder to define personnel as independent contractors.
- These regulations, enforced by the Department of Labor, directly impact workers’ compensation eligibility.
- Businesses face increased premium exposure and potential liabilities for misclassified workers who may now qualify for benefits.
- Consequently, employers must reevaluate their workforces to ensure compliance.
NJ Labor Department Issues Stop-Work Orders Over Worker Misclassification
- The New Jersey Department of Labor issued stop-work orders against two contractors at a Newark apartment tower project following wage theft findings.
- Investigators found the companies improperly classified construction workers, a tactic used to evade payroll taxes and insurance obligations.
- This misclassification leaves employees without essential workers’ compensation protections during workplace injuries.
- Consequently, the state is taking aggressive action against such labor violations.