Worker Misclassification Costs Maryland $59M Annually
A Maryland state task force has revealed that worker misclassification is costing insurers over $58 million annually in workers’ compensation premiums, while leaving thousands of workers without injury protection. The Joint Enforcement Task Force on Workplace Fraud reported that over 5,500 workers were misclassified as independent contractors in 2024. However, a separate analysis by The Century Foundation estimated 23,700 construction workers — or 11% of the state’s construction workforce — were misclassified. Impact on Businesses and Workers The report warned that misclassification: “Misclassifying workers is unacceptable and must be addressed,” said Maryland Comptroller Brooke Lierman. Holding General Contractors Accountable The task force recommended: Currently, general contractors have little incentive to enforce compliance, allowing fraudulent payroll practices to continue. Broader Implications Worker Misclassification has long been a concern for insurers, labor unions, and legitimate contractors, who face unfair competition from non-compliant businesses. The task force called for stronger enforcement to protect workers’ rights and ensure proper workers’ compensation coverage. Stay Informed For more updates on workers’ compensation, visit JacobiJournal.com. Read More: Source: Maryland.gov
Fertilizer Manufacturer Fined $400K After Worker Dies from Toxic Gas Exposure
Pasco, WA – Fertilizer Manufacturer Fined $400K: The Washington State Department of Labor & Industries (L&I) has fined Two Rivers Terminal LLC $394,200 for safety violations that led to a worker’s death at its Pasco facility. The fertilizer manufacturer failed to implement critical safety measures, resulting in a preventable tragedy. Worker Dies from Toxic Hydrogen Sulfide Exposure On June 7, 2024, surveillance footage captured Viktor Voloshin, 56, entering a tanker truck to clean it. Toxic hydrogen sulfide gas from fertilizer residue filled the enclosed space, leading to his sudden death. Voloshin, a dedicated employee of 11 years and father of 12, lost his life due to the company’s failure to enforce proper safety protocols. Company’s History of Safety Violations Fertilizer Manufacturer Fined $400K: L&I cited Two Rivers Terminal for multiple willful and repeat violations, including a lack of air monitoring, inadequate ventilation, and failure to provide protective gear. This isn’t the company’s first penalty. It previously faced fines totaling $672,320, which remain under appeal. Now, the company is also contesting the latest penalties, despite its longstanding history of safety infractions. Where Do the Fines Go? The fines will be directed to the workers’ compensation supplemental pension fund, which provides financial support for injured workers and their families. Stay Updated on Workplace Safety & Legal Actions For more in-depth coverage on worker safety violations, corporate negligence, and labor laws, visit JacobiJournal.com. Read More: Former Florida Broker and Others Indicted in Major Insurance Fraud Schemes Former Ohio Insurance Agent Sentenced for $1.4M Fraud Scheme Florida Contractor Sentenced for Workers’ Compensation Fraud After Fatal Fall Detroit Man Jailed for $1M Unemployment Fraud Targeting Multiple States Source: Washington State Department of Labor & Industries
Out of Bounds for Workers Compensation: Frito-Lay Employee’s Injury Denied Coverage
Out of Bounds for Workers Compensation: Richmond, VA – A Frito-Lay forklift driver who tore his Achilles tendon during a company basketball game won’t receive workers’ compensation benefits, as ruled by the Virginia Workers’ Compensation Commission (VWCC). The commission determined that his voluntary participation in an off-duty, off-premises event does not meet the legal requirements for coverage. Why the Workers’ Comp Claim Was Denied Under Virginia workers’ compensation law, injuries are only compensable if they occur “in the course of employment.” The law excludes injuries from voluntary, employer-sponsored recreational activities that are not part of an employee’s job duties. The VWCC applies three key principles to determine if a recreational activity qualifies as work-related: In this case, the basketball tournament failed to meet these conditions. Frito-Lay’s Role in the Tournament Frito-Lay covered the entry fees for two teams and posted sign-up sheets at its warehouse. Employees with basketball experience were chosen to participate. While some players felt a sense of pride, the company did not require participation, sponsor the event, or offer compensation. Additionally: Employee Morale and Public Relations: Not Enough for Compensation The commission also ruled that the event did not significantly impact employee morale. Out of 500 employees, only a few participated. Furthermore, the primary beneficiary of the tournament was a local free clinic, not the company itself. Although positive public relations may have been a factor, it did not make the tournament a core part of employment. Since participation was completely voluntary, the claim fell out of bounds for workers’ compensation. Stay Informed on Workers’ Compensation Cases For more legal updates on workers’ rights, workplace injury claims, and employer liability, visit JacobiJournal.com. Read Other Articles:📌 Maryland Woman Scams USAA for $58K—Then Tries Again📌 Tennessee Gynecologist Charged with Fraud and Unnecessary Medical Procedures📌 Iowa Sues Bitcoin Depot and CoinFlip Over Millions Lost in Crypto Scams 🔗 Source: Virginia Workers’ Compensation Commission
Buena Park Restaurant Faces $1.1 Million in Wage and Sick Leave Penalties
Santa Ana, CA – A Buena Park restaurant, Food Source LLC, faces more than $1.1 million in penalties after violating wage and sick leave laws, according to the California Labor Commissioner’s Office (LCO). The enforcement action includes citations and a lawsuit for unpaid wages, overtime violations, and failure to provide paid sick leave. Breakdown of Violations and Penalties Wage and Sick Leave Penalties: The Labor Commissioner’s Office (LCO) issued $532,561 in citations to compensate 73 affected workers for wage theft violations, including unpaid wages, overtime violations, liquidated damages, and incomplete wage statements. Additionally, the LCO filed a $575,803 lawsuit seeking compensation for unpaid wages, damages, and penalties related to sick leave violations. The lawsuit claims that the employer denied workers access to paid sick leave, failed to document sick leave availability on pay stubs, kept workers uninformed about their legal rights, and did not provide supplemental paid sick leave during the COVID-19 pandemic. Overall, these violations impacted at least 90 workers at the restaurant. California Labor Commissioner’s Statement Lilia García-Brower, California’s Labor Commissioner, emphasized the importance of workers’ rights, stating: “Employees should not be forced to choose between their health and earning a livelihood. My office is committed to ensuring workers are properly paid for their labor and receive all the benefits they earn and rightfully deserve.” Understanding California’s Paid Sick Leave Law California’s Healthy Workplace, Healthy Families Act of 2014 ensures that employees working at least 30 days per year accrue one hour of paid sick leave for every 30 hours worked. Workers can use their sick leave after 90 days of employment, though employers may limit usage to 40 hours (five days) per year. Unused sick leave carries over, capped at 80 hours (ten days). However, certain employees under collective bargaining agreements may be exempt. For further details, check the California Labor Commissioner’s FAQs on sick leave here. Stay Informed on Workplace Rights For more updates on labor laws, workplace violations, and legal actions, visit JacobiJournal.com and stay ahead with the latest insights.
Detroit Man Sentenced in $1 Million Unemployment Fraud Scheme
A Detroit man has been sentenced to 51 months in prison for orchestrating a multi-state unemployment fraud scheme that stole nearly $1 million from government programs meant to assist struggling workers during the COVID-19 pandemic, officials announced. How the Fraud Unfolded According to court records, Tracey Dotson, 49, along with his co-conspirator, used stolen personal information to submit hundreds of fraudulent unemployment claims. Consequently, they funneled money from Michigan, Pennsylvania, and Maryland’s unemployment insurance programs into their own pockets. To access the stolen funds, they arranged for prepaid Bank of America debit cards—loaded with Pandemic Unemployment Assistance (PUA) funds—to be mailed to addresses in Michigan and Pennsylvania. Then, they swiftly withdrew and spent the money before authorities could detect the fraud. Unemployment Fraud Scheme Luxury Spending and Illegal Purchases Instead of using the funds legitimately, Dotson and his group spent more than $930,000 on designer clothing from Gucci and Louis Vuitton, high-end jewelry, drugs, a vehicle, and even a firearm. Meanwhile, thousands of deserving individuals struggled to receive assistance. Legal Consequences In April 2024, Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud. Consequently, U.S. District Judge Matthew F. Leitman sentenced him to 51 months in prison and ordered him to pay over $900,000 in restitution. Ongoing Investigation and Broader Crackdown Authorities, including the FBI, IRS-Criminal Investigation, and the Department of Labor’s Office of Inspector General, continue to investigate similar fraudulent activities. The government remains committed to prosecuting those who exploit public assistance programs. For more updates on financial crimes and fraud prevention, visit JacobiJournal.com. Read the full DOJ statement here.
Detroit Man Jailed for $1M Unemployment Fraud Targeting Multiple States
A Detroit man will spend over four years in prison for orchestrating a multi-state unemployment fraud scheme that stole nearly $1 million in pandemic relief funds. The scheme, which exploited unemployment programs in Michigan, Pennsylvania, and Maryland, diverted funds meant for struggling workers during COVID-19, authorities announced. Multi-State Fraud Operation Uncovered Unemployment Fraud : According to Acting U.S. Attorney Julie A. Beck, Tracey Dotson, 49, conspired with a co-defendant to manipulate unemployment systems using stolen identities. They submitted hundreds of fraudulent claims, relying on interstate wires and illegally obtained Social Security numbers. Dotson and his accomplice successfully obtained prepaid debit cards from Bank of America, each loaded with Pandemic Unemployment Assistance (PUA) funds. These cards, issued under stolen identities, were sent to addresses in Michigan and Pennsylvania. Lavish Spending & Criminal Gains Instead of helping those in need, Dotson and his associates spent over $930,000 on luxury fashion, jewelry, illegal drugs, a firearm, and a vehicle. They also withdrew large sums of cash, using the stolen funds for personal enrichment. Authorities tracked their transactions, leading to Dotson’s arrest and prosecution. Legal Consequences & Sentencing After pleading guilty in April 2024 to wire fraud and conspiracy, Dotson received a 51-month prison sentence from U.S. District Judge Matthew F. Leitman. He must also repay more than $900,000 in restitution. His case, jointly investigated by the FBI, IRS Criminal Investigation, and the Department of Labor’s Office of Inspector General, underscores the serious consequences of exploiting federal relief programs. Stay Updated on Financial Fraud Cases For more insights into fraud prevention, financial crimes, and legal developments, visit JacobiJournal.com. Read the full DOJ statement here.
Florida Contractor Sentenced for Workers’ Compensation Fraud After Fatal Fall
Workers’ Compensation Fraud: A Florida framing contractor will serve 48 months in prison and pay millions in fines and restitution after failing to provide workers’ compensation insurance and neglecting workplace safety—resulting in a worker’s death. A Pattern of Negligence Workers’ Compensation Fraud: For years, Manuel Domingos Pita, owner of Domingos 54 Construction, ignored Occupational Safety and Health Administration (OSHA) regulations. Despite receiving six previous citations, he still refused to provide fall protection gear for employees working on roofs. In 2020, a worker installing roof decking on a windy day fell after a gust of wind blew him off the roof. The worker did not survive. Workers’ Comp Fraud & Tax Evasion In addition to neglecting safety, Pita also engaged in a massive fraud scheme. Prosecutors revealed that he: As a result, authorities charged him with fraud and willful workplace violations. Acting U.S. Attorney Sara Sweeney emphasized that his deliberate deception harmed workers while enriching himself. OSHA Violations & Legal Consequences Although OSHA cited Pita’s company multiple times in 2019 for failing to provide fall protection, he ignored the safety mandates and never paid the fines. Consequently, the violations continued until a worker tragically lost his life. His legal troubles escalated as follows: Stay Updated on Workers’ Comp & Workplace Safety Cases For expert insights on workers’ comp fraud, OSHA violations, and legal trends, visit Jacobi Journal. Our in-depth industry coverage keeps you informed on critical developments.
Washington Company Fined $231,000 for Asbestos Violations
U-Haul of Spokane Penalized for Failing to Protect Workers Asbestos Violations: The Washington State Department of Labor & Industries (L&I) has levied a $231,000 fine against U-Haul of Spokane for exposing employees to hazardous asbestos during a building renovation. The company failed to conduct required asbestos testing before starting construction at a former K-Mart building, despite its 60-year-old structure, which raised an obvious risk of asbestos-containing materials (ACMs). Discovery of Asbestos Contamination Asbestos Violations: After the renovation had already begun, the Spokane Regional Clean Air Agency conducted an inspection and found that approximately 90,000 square feet of vinyl floor tiles and adhesive contained asbestos fibers. While U-Haul initiated some remediation efforts, nearly 7,400 square feet of asbestos-laden materials remained when the company’s service center officially opened in March 2023. Worker Safety Violations Employees unknowingly handled asbestos without proper safety measures, putting them at significant risk of long-term respiratory illnesses, including asbestosis and mesothelioma. According to L&I’s findings: As a result, L&I issued 16 serious violations, some classified as willful, meaning the company knowingly disregarded worker safety regulations. Pattern of Negligence? This case is not an isolated incident. A U-Haul franchise owner in California was cited for a similar asbestos-related violation in 2019, raising concerns about recurring safety failures within the company. Regulatory agencies may now increase scrutiny on U-Haul’s business practices, particularly regarding workplace safety and hazardous material compliance. Potential Health & Legal Consequences Asbestos exposure is a serious occupational hazard, with long-term health effects that may take decades to appear. Employees exposed to asbestos without proper precautions could face severe lung diseases, leading to potential lawsuits against the company. Given U-Haul’s previous violation history, this latest fine could open the door for further regulatory action or worker compensation claims. What’s Next for U-Haul? L&I has stated that strict enforcement measures are necessary to prevent future asbestos-related violations. U-Haul is expected to either appeal the fine or submit a corrective action plan outlining steps to improve safety protocols. For more business and workplace safety updates, visit JacobiJournal.com. Read the full violation report here.
Michigan Insurer in Talks to Settle Lawsuits Over Fired Workers and COVID-19 Vaccine Mandate
Blue Cross Blue Shield Seeks Resolution in Employment Disputes Lawsuits Over Fired Workers: Blue Cross Blue Shield of Michigan is negotiating a potential settlement for over 100 lawsuits filed by former employees who were terminated for refusing COVID-19 vaccinations, according to recent court records. Major Legal Battle Over Vaccine Policy The settlement discussions follow a $12 million jury award to Lisa Domski, a former IT specialist at Blue Cross. She had worked at the company for over 30 years before her termination. Lawsuits Over Fired Workers: Domski sued the insurer in 2021, claiming she was a victim of religious discrimination after being denied an exemption from the company’s vaccine mandate. She argued that the vaccine conflicted with her Catholic beliefs, while Blue Cross countered that her religious stance was not sincere. In November 2024, a jury ruled in her favor, awarding: Settlement Talks and Legal Implications Due to legal caps on punitive damages, the $10 million award is expected to be reduced to $300,000. U.S. District Judge David Lawson has yet to rule on the final amount. Court filings indicate that Blue Cross and Domski’s attorney, Noah Hurwitz, are now working with a mediator to reach a global resolution for similar lawsuits. Both parties declined to provide additional comments on Friday. A Precedent for Workplace Vaccine Mandates? The outcome of these lawsuits could set a precedent for how employers handle religious exemption requests related to vaccine mandates. For more updates on employment law and business news, visit JacobiJournal.com. Read the full court filing details here.
Cal/OSHA Penalizes Plumbing Companies $529K for Trench Collapse Violations
Failure to Follow Safety Rules Led to Serious Worker Injury Cal/OSHA Penalizes Plumbing Companies: The California Division of Occupational Safety and Health (Cal/OSHA) has fined Smelly Mel’s Plumbing and Sewer Rat Plumbing a total of $529,640 for trench safety violations. The penalties follow an August 2024 trench collapse in San Mateo, which severely injured a construction worker. Investigation Reveals Multiple Safety Failures Cal/OSHA Penalizes Plumbing Companies: Cal/OSHA’s investigation found serious violations that put workers at high risk. As a result, inspectors issued eight citations to each company. Key violations included: Trench Safety Is Critical Trenching accidents can be deadly if safety measures are ignored. To prevent collapses, Cal/OSHA requires protective systems like trench boxes and shoring. Daily inspections are also mandatory to identify potential hazards. “Ignoring these safety requirements puts workers’ lives at risk,” a Cal/OSHA representative stated. “Employers must follow trench safety laws to prevent serious injuries and fatalities.” Stronger Enforcement for Workplace Safety California regulators are increasing safety enforcement to hold employers accountable. This case highlights the severe consequences of workplace negligence. For more updates on workplace safety, visit JacobiJournal.com. Read the official Cal/OSHA citation details here.