News Digest 11/30/2007

By: Rick Waldinger

Quote of the day

"We thought that was noncontroversial. I cannot see how the department or governor can meddle with whether they are independent."

Omar Davis, Missouri Department of Labor and Industrial Relations director, about a 2005 reform law that established new oversight for administrative law judges who hear workers' comp cases, and the argument that it interferes with judges' independence and separation of powers

Go to the full story in the Belleville News-Democrat

Fresno Fireball Victim Gets $27 Million
A federal jury in Fresno awards more than $27 million to a man who was engulfed by a fireball in an industrial accident and suffered burns over nearly two-thirds of his body while working at a Mendota biomass power plant. Because the jury apportioned 5-percent of fault in the accident to the worker and 20-percent to the plant, the employer will get partial credit for workers’ comp benefits. By John Ellis, Fresno Bee
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Raided Central Valley Restaurant Owners Can’t Duck Fraud Suit
A fraud lawsuit seeking at least $1.25 million in damages is filed in federal court against the owners of Mallard’s restaurants in Stockton and Modesto. The owners recently were fined the maximum $100,000 by the DIR for allegedly failing to carry workers’ compensation insurance; they have until Wednesday to pay. By Joe Goldeen, Stockton Record [With Photo] Go to the Full Story…

Show Me State’s High Court to Consider Workers’ Comp Reform
The Missouri Supreme Court considers a challenge to Missouri’s 2005 workers’ compensation reform, which generally made it more difficult for employees to prove that injuries are work-related. Labor unions say the changes, which were championed by Gov. Matt Blunt in an effort to help the state’s economy, excluded large groups of previously-covered individuals. By David A. Lieb, Belleville (Ill.) News-Democrat
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Scottish Shipyard Workers Buoyed by Asbestos Legislation
Former Scottish shipyard workers afflicted by pleural plaques, a crippling lung disease that can lead to mesothelioma, may claim workers’ compensation under new legislation. The House of Lords recently sparked outrage when it rejected workers’ comp claims in favor of insurance giant Norwich Union, overturning a 30-year precedent. Greenock Telegraph (U.K.)
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North Dakota Preparing RFP for Workers’ Comp Agency Consultant
An advertisement for a consultant to review management and claims handling problems at North Dakota’s troubled Workforce Safety and Insurance agency should be finished within several days, as the state Office of Management and Budget begins to prepare a request for proposals. By Dale Wetzel, AP via Dickinson Press
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W.V. Insurance Officials Hire New Manager for Old Claims
West Virginia’s Office of the Insurance Commissioner says it has selected a new third party, Sedgwick Claims Services, to handle all old workers’ comp claims. But some workers are wary that they’ll slip through the cracks in the switch. By J. Turchetta, WBOY-TV (Clarksburg, W.V.)
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Delaware Towns: ‘We’re Going to Control Our Own Destiny’
The First State has struggled for years with rising rates workers’ compensation rates, with various studies ranking the state among the five or 10 most expensive states for coverage. Whether municipalities in Delaware will be able to significantly trim costs by pooling together, however, remains at issue. By Leslie A. Pappas, Wilmington News-Journal
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Backlog Mires Quarter-Million South Africa Metalworkers: Union
More than 250,000 South African workers, most of whom are metalworkers, are awaiting compensation as the backlog at the labor department continues to mount, according to a union. These problems are attributed to “unsound computer systems, staff attitude to their work and the lack of monitoring processes.” Independent Online (South Africa)
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Iraq Contractors Face New Battle in Collecting Disability
For some injured employees of private contractors commissioned by the U.S. government to provide services including driving, building, and security in Iraq, seeking disability compensation through their insurers is a battle they did not anticipate. Claims filed under the federal Defense Base Act with the Office of Worker’s Compensation Program have skyrocketed since 2003. By Mrinalini Reddy, Medill Reports (Northwestern Univ.)
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‘For What?” Asks Pennsylvania Builder After More Charges
A Lackawanna County, Pa., homebuilder who already faces charges of writing bad checks is arrested again for allegedly failing to provide workers’ comp coverage. By Josh Brogadir, WNEP-TV (Moosic, Pa.) [With Photo] Go to the Full Story…