News Digest 5/8/2006

By: Rick Waldinger

Quote of the day

"Single-establishment firms are fairly safe. The problem is small establishments within middle-sized firms."

Christopher Nelson, co-author of a Rand Corp. study that finds small businesses are among the safest worksites

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Eight Suspects Collared in San Diego Fraud Bust
Massachusetts authorities, acting on insurance fraud indictments in California, arrest eight San Diego County executives of Braintree, Mass.-based NICA Inc., a firm that helps courier services change the classification of drivers from employees to independent contractors. Each faces 50 counts of conspiracy, fraudulent purchase of workers’ compensation insurance and filing false claims. By Marc Lifsher, Los Angeles Times
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Think Tank’s Study Finds Small Businesses Safer
New research by Santa Monica-based Rand Corp. finds that, based on government data, small, single-site firms, where an owner may be present to communicate with and forge personal relationships with employees, are among the safest places to work. The economic incentive is in the fact that insurance hikes after accidents can dwarf Fed-OSHA fines. By Michelle Keller, Los Angeles Times
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Arkansas High Court: WCC Must Decide Employment Relationship
Reversing a lower court, the Arkansas Supreme Court orders the state Workers’ Compensation Commission to determine whether a Bentonville company had an employer-employee relationship with a temporary worker at the time she suffered an injury on a candle production line in 1997. The candle company argued it was the employer within the meaning of the Workers’ Compensation Act, so it was immune under state product liability law. Morning News (Springdale, Ark.)
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Will Nebraska Patrolman’s Children Get Death Benefits?
The Nebraska Supreme Court is deciding whether a Nebraska State Patrol trooper’s children from a first marriage will receive death benefits as a result of his 2002 suicide. Meanwhile, the state appellate court is considering whether his widow and seven children are entitled to workers’ compensation benefits. Sioux City Journal
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Connecticut Troopers’ New Bumpers Expected to Prevent Injuries
Connecticut state trooper cruisers that patrol high-traffic areas will be outfitted with push bumpers, a relatively inexpensive piece of equipment that can help prevent back and neck injuries to passengers and cut workers’ compensation expenses. By Tracy Gordon Fox, Hartford Courant
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Government Urged to Speed Comp for Nuke Weapons Workers
U.S. House members who represent ailing, mostly-elderly nuclear weapons workers say the federal government must pick up the pace in compensating them. Under a program created by Congress in 2000, workers exposed to cancer-causing radiation or beryllium and silica can get a lump sum payment of $150,000 plus medical benefits. KOAT-TV (Albuquerque)
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Judge Says Not So Fast, Gov:
A Rhode Island judge blocks Gov. Donald Carcieri’s attempt to fire two members of Beacon Mutual Insurance Co.’s board of directors amid a recent audit’s revelations of mismanagement and favoritism in pricing at the state’s largest workers’ compensation insurer. The directors claim Carcieri is discriminating against them because they work for labor unions. WPRI-TV (Providence)
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Former New York Water Worker Sunk for Comp Fraud
A Binghamton, N.Y. former water treatment plant operator is convicted of filing a false accident report by claiming a domestic stabbing incident was work-related to obtain worker’s compensation benefits. He faces four years in jail. WSTM-TV (Syracuse)
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