Shakeup in workers’ comp administration in Oregon

• Oregon Gov. Tina Kotek nominated a new chair of the Oregon Workers’ Compensation Board — administrative law judge Joy Dougherty —after putting the former chair on administrative leave the state had paid for an investigation into her conduct.
• Constance Wold was placed on administrative leave in July, a day after it was revealed that the state paid a lawyer more than $42,000 to conduct a mysterious investigation into workplace complaints.
• State officials have not disclosed any more details about the investigation.
• The state also did not ask Baumgart to produce any written report on her findings from the investigation.
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Arizona: COVID could be covered under workers’ comp

• An employee who contracts COVID on the job is entitled to benefits under Arizona’s workers’ compensation, the state Court of Appeals has ruled and their survivor is entitled to benefits if the disease kills him.
• A three-judge panel rejected arguments by Western Millwork that the only way the widow of Kenneth Zerby could collect death benefits is if he had contracted some sort of “occupational disease.”
• Judge Michael Catlett said no one is arguing that COVID-19 is an occupational disease.
• The evidence presented by Diane Zerby on behalf of her husband showed that he contracted the disease while at work, making his death work-related.
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Lawsuit claims nurses did not receive eligible funds

• The U.S. Department of Labor filed a complaint in federal court alleging Reliance Staffing LLC and its owner, Fahim Uddin, failed to pay healthcare professionals overtime earned while working at skilled nursing facilities in Michigan.
• An investigation by the department’s Wage and Hour Division alleged that Uddin and Reliance Staffing misclassified their workers as independent contractors when, in fact, they were employees.
• By doing so, the employer failed to pay $90,765 in overtime wages to 70 registered nurses, licensed practical nurses and certified nursing assistants.
• The employers also do not pay applicable employment taxes or workers’ compensation on their behalf.
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Arthur J. Gallagher buys Eastern Insurance Group

• Arthur J. Gallagher & Co. signed a definitive agreement to acquire Natick, Massachusetts-based Eastern Insurance Group, LLC, a subsidiary of Eastern Bank.
• The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2023.
• Tim Lodge and his team will remain in their current location under the direction of Patrick Kennedy, head of Gallagher’s Northeast region retail property/casualty brokerage operations.
• John Neumaier, head of Gallagher’s East region employee benefits consulting and brokerage operations.
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