News Digest 8/11/2008

By: Rick Waldinger

Quote of the day

"She did engage in many good-faith efforts."

Steven R. Kartagener, lawyer for Helen Sieger, owner of a Bronx, N.Y. nursing home, contending that his client unsuccessfully sought to obtain workers' compensation insurance

Go to the full story by Steven Greenhouse, New York Times [may require registration]

Bronx Nursing Home CEO Nabbed on Workers’ Comp Charges
The president and CEO of one of a major Bronx nursing home, a facility that also has been the target of multiple employee protests, is arrested for allegedly failing to provide workers’ compensation coverage for 400 employees between 2007 and 2008.
Go to the full story by Steven Greenhouse, New York Times [may require registration] Go to the full story by E.B. Solomont, New York Sun
Go to the full story by Kenneth Lovett and Chrisena Coleman, New York Daily News
Go to the full story by Daniel Massey, Crains New York Business [with video] Go to the full story in the North Country Gazette

CRM-Managed Transportation Trust to Run Dry in Five Months
The Transportation Industry Workers’ Compensation Trust One, of seven failed insurance groups that were managed by Poughkeepsie, N.Y.-based Compensation Risk Managers LLC, will run out of cash in five months, according to the New York Workers’ Compensation Board. State officials say claimants will continue to be paid through assessments on members of the transportation and other trusts; also, new legislation allows the board to borrow from a state fund in order to cover trust losses. By Mary Beth Pfeiffer, Poughkeepsie Journal
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Pennsylvania Firm to Acquire Hoosier State Workers’ Comp Insurer
Lancaster, Pa.-based Eastern Insurance Holdings Inc. announces that it plans to acquire Indiana-based workers’ comp insurer Employers Security Holding Co. and its subsidiaries. The $14.9 million acquisition, which will expand Eastern Insurance’s workers’ comp operations into Indiana and eventually into other Midwestern states, includes the assumption of $2.9 million in debt. By Jessica Bair, Central Penn Business Journal
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North Dakota: Hearing for Former WSI Chief This Month
North Dakota’s former workers compensation director Sandy Blunt is scheduled to be arraigned August 25 on charges that he misspent more than $18,000 in agency funds. Specifically, Blunt is charged with charged with distributing unauthorized bonuses to top executives at Workforce Safety and Insurance, and buying meals, gifts and trinkets for employees and state legislators. By AP via Fargo Forum [may require registration] Go to the Full Story…

Suit Alleges Sexual Favoritism, Workers’ Comp Retaliation
Four women sue a subsidiary of Minnesota-based Taylor Corp. on allegations that include age, sex and pregnancy discrimination, and retaliation for filing for workers’ compensation. The suits also allege that “sexual favoritism” at the company, where female employees were retained due to their appearance or personal relationships with managers, extended to two employees who had personal relationships with the owner. Minneapolis/St. Paul Business Journal
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Massachusetts Painting Contractor Admits to Violations
The owner of a Peabody, Mass. painting and roofing company admits to labor law violations including failing to obtain workers’ compensation insurance, improperly classifying workers as independent contractors and failing to pay overtime. By Julie Manganis, Salem News
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Grim Stats for Young Nova Scotia Workers
In 2007, 118 young workers in Nova Scotia suffered time-loss injuries in August. That means about four workers every single day were seriously injured, and this year is not shaping up any better. Nova Scotia Business Journal
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