News Digest 3/5/2008

By: Rick Waldinger

Quote of the day

"The underground economy is just this dark hole, and it's endless."

Lilia Garcia, director of the Maintenance Cooperation Trust Fund, a Los Angeles-based advocate for janitorial workers

Go to the full story in the Los Angeles Times

Southland Fund Works to Expose Abuses of Underground Economy
In a tiny Southern California office, Lilia Garcia runs a watchdog agency modeled after construction labor compliance programs that investigates and documents abuses against janitors by their employers, which often are major retailers. Sketchy firms often pay their largely immigrant workforce $3 or less per hour, in cash to avoid tax and workers’ compensation laws. By Molly Selvin, Los Angeles Times [with photo] [may require registration] Go to the Full Story…

D.C.-Area Drywallers Fall into Pitfall of Underground Economy
About a dozen immigrant drywallers, some of whom were illegal workers, were never paid for their work last summer at a Reston, Va., Town Center project by their employer, an unlicensed labor broker, according to contractors on the job. Their stories are part of Washington, D.C.’s estimated $1 billion underground construction labor market. By Freeman Klopott, Examiner (San Francisco)
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San Diegan Claims Racial Bias in Benefit Cut
An El Cajon cook who uses a breathing machine contends that he lost half of his workers’ compensation benefits because of his race. Milton Jones says he was told that because he is African-American, he has a genetic predisposition to high blood pressure. KGTV (San Diego) [with video] Go to the Full Story…

Cowboy State Groups Push to Expand Death, Disability Benefits
Members of a key legislative committee remain uncommitted to a comprehensive study of the Wyoming workers’ compensation program amid intense lobbying by worker advocates that are pushing for increased death and disability benefits. The state’s co-chairman of the Joint Labor, Health and Social Services Committee says the death benefit is probably too low, but that major reform may not be necessary. By Dustin Bleizeffer, Casper Star Tribune
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Rural New Yorker Faces Fraud Charges
A 54-year-old Tioga, N.Y. man faces felony charges for allegedly working while collecting workers’ compensation benefits. Gannett News Service via Ithaca Journal
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$1.6M Settlement in Catastrophic New Jersey Crane Incident
Two companies reach a $1.6 million settlement in a workers’ compensation suit stemming from the 2002 death of a 43-year-old New Jersey man two weeks after a 35-ton gantry straddle crane ran over him. The worker survived for 15 days with “catastrophic” injuries before succumbing. By Emily Previti, Press of Atlantic City
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Commentary: Connecticut Bill Would Unfairly Shift Burden of Proof
The chairman of the Connecticut Conference of Municipalities’ labor relations committee argues that new legislation, which would resurrect the state’s heart disease and hypertension mandate and provide new benefits for cancers and infectious diseases, would expand workers’ compensation benefits unfairly by shifting the burden to towns and cities to show that public safety employees’ illnesses are not job-related. By Steven Werbner, Hartford Courant
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Report: Empire State’s Reform Positive, But Has Ways to Go
New York has improved its workers’ compensation system but can make it more efficient, according to a report from the state insurance superintendent to the governor. Officials estimate that the state’s reform legislation has saved Empire State businesses $1 billion this fiscal year. Business First of Buffalo
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WSI Whistleblower Runs for North Dakota State Senate
A suspended executive at North Dakota’s workers compensation agency is running for the state Senate. James Long was chief of support services at Workforce Safety and Insurance and was suspended from his job in November for, he contends, pointing out questionable agency practices. By AP via Grand Forks Herald
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