News Digest 12/4/2006

By: Rick Waldinger

Quote of the day

"It's not fair for anyone to say they decreased the workers' compensation burden. Mine will get worse."

Sal Listek, Contra Costa County pizzeria owner, contending that despite State Fund's rate cut, the minimum wage hike will boost his workers' comp bill

Go to the full story in the Contra Costa Times

Calaveras Bus Driver Busted
A 48-year-old Calaveras Unified School District bus driver admits to filing false workers’ compensation claims for a purported 2003 back injury after she’s caught on videotape bending down to pick up items, carrying large bags of aluminum cans and climbing on her hands and knees to vacuum a car. She must serve 90 days in jail and pay $27,000 in restitution. By Vanessa Turner, My Mother Lode (Sonora)
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Minimum Wage Bump Offsets Workers’ Comp Savings, Some Say
State Fund’s proposed a 9 percent average reduction in workers’ compensation rates will not help some business owners who claim that the minimum wage increase takes effect at the same time as the rate cut, and the higher payroll will increase workers’ compensation payments. By Martin Dunai, Contra Costa Times
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Club Owners’ $1.06 Million Workers’ Comp Penalty Non-dischargeable in Bankruptcy
The owners of the West Warwick, R.I. nightclub that burned to the ground in 2003, killing 100 people including four staff, can be held liable for a $1.06-million state penalty for lack of workers’ compensation insurance, after a federal bankruptcy court judge rules that the penalty is non-dischargeable.
Go to the full story by Lynn Arditi, Providence Journal
Go to the full story by AP via Boston Herald

ALJ Reviews Michigan Attorney’s Stress Claim
A Wisconsin administrative law judge is reviewing a workers’ compensation claim for stress that a former Iron County, Mich., corporation counsel who walked off the job in early April and was terminated in September filed after her sick leave and vacation time expired. By Margaret Levra, Ironwood (Mich.) Daily Globe
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New York Contractors Charged with Workers’ Comp Fraud
Authorities nab two Nassau County, N.Y. business operators for allegedly providing false documents to the state workers’ compensation board in an attempt to avoid insurance requirements for a Binghamton contracting firm. Press & Sun Bulletin (Binghamton, N.Y.)
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New York Appeals Court Upholds Social Security Offset
The New York Supreme Court’s Appellate Division upholds a board finding that workers’ compensation law calls for an offset in death benefits when a deceased employee’s spouse is receiving Social Security survivor’s payments. By Roberto Ceniceros, Business Insurance
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Illinois Funeral Home Must Pay Whistleblower $1.4 Million
A southern Illinois funeral home must pay $1.4 million to a worker who claims he was fired for reporting that the company was throwing away body parts and for making a workers’ compensation claim for an injury he sustained pushing caskets. By AP via WQAD-TV (Moline, Ill.)
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West Virginia Workers’ Comp Insurer Buying Office Space
BrickStreet Mutual Insurance Co., the private workers’ compensation insurer that took over the West Virginia market in January, is negotiating with Forest City Enterprises to purchase commercial space in Charleston. By George Hohmann, Charleston Daily Mail
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Horse Industry Has Major Economic Impact on E. West Virginia
The thoroughbred racing industry in eastern West Virginia has grown so much in six years that it now helps employ more than 3,600 people and has an annual economic impact of $173 million, although some horse owners are struggling to turn a profit, according to a study. Last year, lawmakers diverted $11 million from the purse fund to help pay down a $3 billion workers’ compensation fund shortfall. By Vicki Smith, AP via Charleston Daily Mail
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