Comp News

TOP 10 EMPLOYER FRAUD CASES OF 2011

2012-01-18T00:59:00Z

"We hear a great deal about allegedly fraudulent claims by injured workers.

But we thank our friends at WILG, and especially Leonard Jernigan of North Carolina, for the following list of:

Top 10 Employer/Insurance Carrier Fraud Cases

Brad Chalk"

This top 10 list represents just a small portion of the company fraud cases in the news this year. More importantly, the total amounts stolen are just a fraction of the amounts companies have managed to steal. For every company that has been caught, we can only assume many more are getting away with the same crime.

Of the $2 billion worth of fraud in just 2 of the following cases, only $498 million has been recovered. That's over $1.5 BILLION that these employers got away with stealing. Once again, big business wins, while workers and taxpayers lose, big time.

Insurance giant AIG commits $1 billion in workers' compensation fraud.

AIG settled the $1 billion suit for $450 million.

This week, a federal judge approved a settlement by American International Group, Inc. to pay $450 million for shortchanging state insurance pools by nearly $1 billion. This is the same AIG that taxpayers bailed out during the 2007 economic crisis, and just last year they paid $146.5 million in fines, taxes and assessments in a settlement with all 50 states over workers' compensation reporting errors. A good recovery, but the settlement leaves a potential $550 million in unrecovered funds.

Compensation Risk Managers commits $1 billion in fraud, forcing many small businesses to close.

Compensation Risk Managers (CRM), a company that acted as trust administrator for small business in New York State who self-insured for workers' compensation, was sued in 2009 for $400 million in a lawsuit for fraud. CRM was deliberately underestimating the liabilities of many businesses, making its service seem to save companies money when it was really leaving them with inadequate reserves when workers got hurt. When CRM filed for bankruptcy, New York State was left with no other option than to go after the 900 small businesses that were CRM's clients, who have collectively under-paid over $600 million. Many businesses were forced to close, and only $48 million has been recovered so far.

California couple underreports payroll by $30 million, buys Ferraris and Rolexes instead.

Kile and Petronella funded a lavish lifestyle with the money they stole.

Devon Lynn Kile and her husband Michael Petronella committed a total of $30 million in insurance fraud, while buying $500,000 in jewels, Rolex watches, and a car collection including two Ferraris, a Bentley and a Range Rover. Kile has been sentenced to 10 years probation and a possible 10 years in prison, and has been ordered to pay $2.8 million in restitution. Investigators also found an application by Ms. Kile to appear on Bravo's "The Real Housewives of Orange County." The couple are walking off with a profit of more than $27 million for their scheme.

Janitorial company owner underreports $10 million in payroll and saves $2 million.

In April, Teresa Reif, owner of Genesis Janitorial in San Mateo, CA, was arrested for under-reporting the number of employees and her payroll to her insurance carriers. Reif allegedly employed more than 140 people but reported fewer than 70 and used fraudulent paperwork to support her lies. Inconsistencies in her numbers alerted her insurance carriers to the fraud and her fraudulent books were found during a search of her business. If convicted, she faces up to five years in prison and a $50,000 fine. That leaves nearly $2 million in unrecovered funds and 70 employees without insurance.

North Carolina man pleads guilty to $2.7 million in fraud.

$2.7 million of NES's work' comp' insurance payments were stolen by Carl Dale Fuller

Carl Dale Fuller, a North Carolina businessman, defrauded his employer and the company's employees when he pocketed the $2,716,537 of the company's workers' compensation insurance premium payments. He issued fake insurance certificates and even paid a few claims, but was finally caught by the FBI and brought to justice. The fraudster faces up to 20 years in prison, a $250,000 fine and must pay back all of the money he took in premiums.

Maki-Maki restaurant owners are convicted of tax evasion and insurance fraud totaling $2.1 million.

Maki-Maki restaurant owners were convicted of $2.1 million in fraud.

In February, the former owners of two high-end Japanese restaurants pled guilty to 14 felony counts including $2.1 million worth of tax evasion and insurance fraud. Since 2001 the couple had pocketed the money they were supposed to be paying in workers' compensation premiums and unemployment insurance. The husband will also serve 2 years in jail, but the $2.1 million remains unrecovered, including an estimated $1.1 million sales tax loss to the state of California.

Bay Area shuttle service owner convicted on 10 counts of workers' compensation fraud, totaling $1.3 million.

In February, the former owner of a Bay Area shuttle service was sentenced to 10 years in prison and ordered to pay $2.7 million in fines after being convicted of more than 19 counts of workers' compensation fraud. The company under-reported payroll by more then $5 million, resulting in more than a $925,000 underpayment of payroll taxes. The company also failed to report $11 million in income, costing the state and federal governments more than $500,000 in tax revenue.

California general contractor convicted of multiple counts of fraud and ordered to pay $1.2 million.

Monica Mui Ung convicted on numerous counts of fraud.

Monica Mui Ung, owner of NBC General Contractor Corporation, was convicted of numerous counts of workers compensation and wage fraud, including underpaying wages due her employees, and failing to pay for overtime, sick leave, pension, health care, training, vacation, and other benefits as required by labor laws. She has been sentenced to 4 years in prison and ordered to pay $350,000 in restitution to her employees, as well as $850,000 to the State Compensation Insurance Fund. Because Ung was a recipient of public contracts, her actions "created an unfair bidding environment for all other legitimate bidders for public works contracts."

Gray Container owner ordered to pay $600,000 owed to the Ohio Bureau of Workers' Compensation.

Anthony Gray was recently sentenced for letting his company's workers' compensation insurance lapse, unbeknownst to his employees, who were filing valid claims. Gray Container, a 55-gallon drum manufacturer, has been ordered to discontinue operations until he becomes compliant with workers' compensation law and takes action to repay more than $600,000 owed to the Ohio Bureau of Workers' Compensation. The CEO of the Ohio Bureau of Workers' Compensation has remarked that "[t]his is one of the most egregious cases of an employer simply ignoring laws meant to protect workers."

Ohio business owner fails to pay $73,000 worth of workers compensation coverage for her employees.

Linda Bommer of R&W Swimming Pools was convicted of failing to maintain work' comp' insurance for her employees.

In February, Linda Bommer, owner of R&W Swimming Pools in Harrison, Ohio, was convicted of failing to maintain workers' compensation insurance coverage for her employees. Eight claims were filed against her company while she was operating a business under a lapsed policy. She currently owes approximately $73,000 in past due premiums, in addition to non-compliance claims costs.

Ogilvie: Supreme Court Denies Review

2011-10-27T20:29:00Z

By Mark Gearheart, Esq.

On October 26, 2011, the California Supreme Court issued an order denying defendants’ Petition for Review of the First District Court of Appeal’s opinion in Ogilvie v. City and County of San Francisco. The Appellate Court opinion now stands as the law of the land.

In its July 29, 2011 opinion (Ogilvie v. WCAB (2011) 197 Cal. App. 4^th 1262; 76 Cal. Comp. Cases 624), the Court of Appeal reversed the Appeals Board and adopted applicant’s argument that where the scheduled permanent disability rating does not reflect an employee’s diminished future earning capacity, it can be rebutted. The rebuttal methodology remains as set forth in pre-SB 899 cases, i.e., producing substantial evidence of what the actual diminished future earning capacity really is.

The Appellate Court opinion reaffirmed that the PDRS itself is rebuttable and that the parties may rebut the final scheduled rating

The Court endorsed the use of vocational expert evidence to determine diminished future earning capacity, cautioning the parties that they would have to hew closely to the definition of DFEC set forth in Labor Code Section 4660(b) (2). The Court also outlined several alternative rebuttal methodologies. The Court opinion did not limit the parties to those rebuttal methodologies discussed by the Court.

The Ogilvie matter itself will now be returned to the WCAB level where presumably there will be further proceedings consistent with the Court’s opinion to clarify exactly what percentage of loss earning capacity has been caused by the injury.

The denial of review by the Supreme Court is welcome news for injured workers and their advocates. The Court of Appeal opinion opens the door to challenge the PDRS in those cases where its results are inaccurate and fail to reflect diminished future earning capacity caused by the injury. The exact details of what types of evidence will be considered substantial in this regard will be further developed in future cases.

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Click here for a copy of the DCA decision.

Additional CAAA resources regarding Ogilvie are:

California Applicants' Attorneys Association (CAAA) Reacts to California Supreme Court's "Baker" Decision on Cost of Living for Disabled Workers.

2011-08-12T17:42:00Z

The California Supreme Court issued its decision today in Baker v. WCAB,

addressing the issue of when the cost of living adjustments (COLA) contained

in Labor Code Section 4659(c) are first calculated for payments of permanent total

disability and life pension benefits. The code section provides for the annual indexing

of two categories of workers’ compensation benefits—total permanent disability and

life pension payments—to yearly increases in the state’s average weekly wage (SAWW),

so that lifetime disability payments made to the most seriously injured workers will keep

pace with inflation. Unfortunately for Californians disabled by an injury on the job, the Court

ruled that disability compensation will not rise with inflation.

Learn more...

California Applicants’ Attorneys Association (CAAA) Welcomes Governor’s New DWC Administrative Director Appointee

2011-07-20T02:03:00Z

The California Applicants’ Attorneys Association (CAAA), whose members

represent Californians injured while doing their jobs, today welcomed Governor

Brown’s appointee as Administrative Director (AD) of the Division of Workers’

Compensation (DWC), Rosa Moran:

“CAAA is pleased that the governor has appointed a new Administrative

Director,” said Adam Dombchik, CAAA legislative chair. “We are glad that the

DWC will have a new, full-time AD, as there is work to be done in the DWC.

We look forward to working with AD Moran and the DWC and the Department

of Industrial Relations to continue to improve the system for workers and

employers.”

Learn more...

SEN. LABOR COMM. PASSES BAN ON BIAS IN PERMANENT DISABILITY COMPENSATION: Alejo Bill Prohibits Insurers from Penalizing Ethnic Minorities, Women, Older Workers

2011-07-07T22:11:00Z

SACRAMENTO - The Senate Labor and Industrial Relations Committee today

passed AB 1155 (Alejo), which bans race, gender and age discrimination in

awarding disability compensation to workers injured on the job by a 5 to 1 vote.

The measure now goes to the full Senate for a vote. California Applicants’

Attorneys Association (CAAA) is sponsoring AB 1155 because SB 899, former

Governor Schwarzenegger’s workers’ compensation measure, is being interpreted

to permit discrimination against California workers based on their age, race and

gender. Insurers contend that SB 889 allows them to reduce permanent disability

compensation based on those factors.

Existing workers’ compensation law allows an injured worker’s permanent

disability rating, and permanent disability compensation based on that rating, to be

reduced based on factors that lead directly to various forms of unfair and

inappropriate discrimination. Compensation to disabled workers has been cut by

millions each year due to this discrimination. Schwarzenegger as governor twice

vetoed similar measures. The measure will now go to the Senate floor.

While reducing an injured worker’s permanent disability compensation due to

prior injuries or actual existing disabilities is legal and appropriate, reducing

disability compensation based on “risk factors” associated with race, gender or age

should not be permitted.

The Commission on Health and Safety and Workers’ Compensation (CHSWC)

reported that based on more than 10,000 summary cases (where there is no

attorney involved) about 10.5% of disability evaluations include an apportionment

component. Apportionment is reducing disability ratings in those cases by about

40% on average, according to CHSWC.

“If a disability exists prior to an industrial injury, under AB 1155 this would still

be apportionable, and it should still be apportionable. The doctors in the workers’

compensation community are still apportioning to ‘risk factors,’ such as race, age

and gender,” said Marc Marcus, CAAA Legislative Committee member. CAAA

members represent those injured at work. “There should not be apportionment to

any of these immutable characteristics, when there is no prior disability. You

should not have your permanent disability compensation cut just because you fall

into one of these classes. AB 1155 would eliminate that discriminatory

apportionment.”

Example of the impermissible application of discrimination in applying Labor

Code §4663.

Example: San Diego Costco worker loses HALF of permanent disability

compensation due to genetic predisposition (African-American racial heritage) to

hypertension.

An African-American male was injured after exposure to cleaning chemicals while

working for Costco in San Diego. The doctor determined he had a work injury with

permanent disabilities due to hypertension and chronic asthma. The doctor

deducted 50% of the permanent disability compensation due to non-industrial “risk

factors.” These “risk factors” included genetic predisposition, and family history.

The worker had no history of hypertension before the industrial toxic chemical

exposure.

Learn more...

Insurers Own Expenses Consume More Than 35% of Workers’ Compensation Insurance Payout

2011-06-21T23:06:00Z

Insurers Own Expenses Consume More Than 35% of

Workers’ Compensation Insurance Payout

Fastest Rising Costs: Overruling Doctors’ Recommended Care

SACRAMENTO, CA – Advocates for injured workers today released a

chart showing that workers’ compensation insurance carriers’ own expenses

consume more than 35% of the payout, with the fastest-rising costs going to review

and overrule treatment from the insurers’ own hand-picked doctors. In contrast, the

permanent disability compensation payout to those injured on the job is a small

percentage (10.8%) of the payout of the workers’ compensation insurers. The chart

was compiled using insurance industry figures from the Workers Compensation

Insurance Ratings Bureau (WCIRB). “Employers should demand that workers’

compensation insurers lower their overhead and take less of the premium dollar,”

said California Applicants’ Attorneys Association (CAAA) President Barry

Hinden. “The fastest rising costs are the hundreds of millions of dollars spent on

reviewing treatments recommended by their own handpicked doctors -- and in far

too many instances, overruling those recommendations. Why should insurers

overrule their own doctors’ recommended care? The Legislature and the Insurance

Commissioner should investigate how to free more of these hundreds of millions

of dollars so they can be spent for their intended purpose – to heal and compensate

those injured doing their jobs.”

The chart (attached) shows that out of total workers’ compensation payout, insurer

expenses consume 35.7%, all medical care combined receives 38.3%, temporary

disability support 12.5%, and permanent disability compensation just 10.8%. The

Schwarzenegger Rating Schedule slashed permanent disability compensation by

50% to 70%.

Learn more...

OFF OUR KNEES: Hotel Housekeepers Win CalOSHA Citation and Sen. Appropriations Support to End “On Your Knees” Bathroom Cleaning and Backbreaking Bed-Making Practices

2011-06-03T18:36:00Z

OFF OUR KNEES:

Hotel Housekeepers Win CalOSHA Citation and Sen.

Appropriations Support to End “On Your Knees” Bathroom

Cleaning and Backbreaking Bed-Making Practices

CalOSHA citation, committee approval Boost De León Bill to End

“Modern Short-Handled Hoe”

SACRAMENTO, CA - The California Applicants' Attorneys Association (CAAA) and UNITE

HERE today said that an OSHA citation and Senate Appropriations Committee approval of SB

432 (De León) will help propel their efforts to outlaw housekeeping practices that result in

housekeepers cleaning bathroom floors on their knees and lifting heavy mattresses for lack of

fitted sheets. The California Occupational Safety and Health Administration (CalOSHA) has

issued citations alleging that the Hyatt Andaz Hotel in West Hollywood has failed to comply

with multiple state safety regulations. The State Senate Appropriations Committee approved the

measure Thursday on a 6 to 3 vote. The bill will be heard on the State Senate Floor next week.

Hotel housekeepers frequently clean bathroom floors on their hands and knees, an unsafe and

degrading practice that is tolerated by too many hotel employers. This practice, combined with

the failure to provide fitted sheets like those used in homes, has led to an unacceptable rate of

back and other work-related injuries. A landmark study reported in the American Journal of

Industrial Medicine (2009) by a team of researchers from four universities and UNITE HERE

found that hotel housekeepers, particularly females, had the highest injury rates of any hotel

service workers in the study. Female housekeepers, especially Hispanic women, had the highest

risk of injury. Hispanic women were almost twice as likely to be injured as white housekeepers.

The California Occupational Safety and Health Administration (CalOSHA) has issued citations

alleging that the Hyatt Andaz Hotel in West Hollywood has failed to comply with multiple state

safety regulations. CalOSHA also highlighted concerns about repetitive motion injuries to

housekeepers owing to potential hazards arising from the tasks of bed making and floor cleaning.

CAAA news release, Hotel Housekeepers Seek to End “On Your Knees”, May 27, 2011; page 2

In an information memo issued to the Hyatt Andaz on May 20, CalOSHA identified instances of

housekeepers who suffered medically diagnosed repetitive motion injuries while making beds

and cleaning bathroom floors on hands and knees.

The agency said the hotel should consider using fitted sheets and tools, among other measures, to

prevent repetitive motion injuries to housekeepers.

CalOSHA put the Hyatt Andaz on notice, warning that if it fails to remedy these potentially

hazardous conditions and workers become injured in the future, CalOSHA may issue citations.

The agency advised that such citations could be classified as ‘willful,’ which is a more severe

type of citation with potentially stiffer penalties.

The hazard memo – the first of its kind for hotels in California and nationwide – comes as state

legislators weigh a proposed bill requiring hotels to provide long-handled tools and fitted sheets

to prevent housekeeper injuries. The full Senate will vote on the legislation, SB 432 (D-De

Leon), next week.

“Working as a housekeeper for 14 years has taken a toll on my body. When I injured my back

making a bed, I was on medication for months,” said Morena Hernandez, a Hyatt Andaz

housekeeper. “I hope CalOSHA’s recommendation for fitted sheets and tools can help the hotel

industry see that SB 432 can be a simple, positive way to make our jobs safer.”

CalOSHA’s citations are a result of investigations following injury complaints lodged by Hyatt

housekeepers in November 2010. In total, CalOSHA proposed $7,000 in fines against the Hyatt

Andaz for various alleged safety violations found in the hotel.

SB 432 is designed to eliminate the very hazards that are the subject of CalOSHA’s information

memo – injuries housekeepers endure from cleaning bathroom floors on their knees and lifting

heavy mattresses repeatedly for lack of fitted sheets. The bill’s sponsor, the California

Applicants Attorneys Association, intends to amend the bill in the Assembly to clarify that the

law will be enforced with existing OSHA staff, meaning no additional costs to the state. Another

amendment will make clear that if a hotel can introduce a better ergonomic remedy to reduce

housekeeper injury, it will be allowed to apply for a variance from the bill’s requirements.

The Hyatt has 15 working days to pay the $7,000 in proposed penalties or file an appeal.

Learn more...

BILL BANS BIAS IN DISABILITY CLAIMS: Alejo Bill Prohibits Insurers from Penalizing Ethnic Minorities, Women, Older Workers

2011-05-16T18:23:00Z

BILL BANS BIAS IN DISABILITY CLAIMS:

Alejo Bill Prohibits Insurers from Penalizing Ethnic

Minorities, Women, Older Workers

SACRAMENTO - The Assembly today passed the California Applicants’

Attorneys Association (CAAA) sponsored AB 1155 (Alejo), to ban race, gender

and age discrimination in awarding disability compensation to workers injured on

the job, by a 44-22 party-line vote. SB 899, Governor Schwarzenegger’s workers’

compensation bill, is being interpreted to permit discrimination against California

workers based on their age, race and gender. Insurers contend that SB 889 allows

them to reduce permanent disability compensation awards based on those factors.

Existing workers’ compensation law allows an injured worker’s permanent

disability rating, and permanent disability compensation based on that rating, to be

reduced based on factors that lead directly to various forms of unfair and

inappropriate discrimination.

While reducing an injured worker’s permanent disability compensation due to

prior injuries or actual existing disabilities is legal and appropriate, reducing

disability compensation based on “risk factors” associated with race, gender or age

should not be permitted.

The Commission on Health and Safety and Workers’ Compensation (CHSWC)

reported that based on more than 10,000 summary cases (where there is no

attorney involved) about 10.5% of disability evaluations include an apportionment

component. Apportionment is reducing disability ratings in those cases by about

40% on average, according to CHSWC.

CAAA Release: BILL BANS BIAS IN DISABILITY CLAIMS, 5.12.11, page 2

“The employers should not pay for disabilities that are unrelated to the job injury,”

said Marguerite Sweeney, CAAA Legislative Committee member, CAAA

members represent those injured at work. “But the application of the workers’

compensation law – Labor Code Section 4663 – has resulted in the reduction of

permanent disability awards on account of a worker’s gender, race or age. We

believe this is an unintended consequence, and AB 1155 would eliminate this

problem.”

“For example, women are more likely to develop carpal tunnel syndrome and

depression. We have seen doctors reduce a female worker’s permanent disability

on account of ‘being female’,” said Sweeney, a Redding attorney.

Example of the impermissible application of discrimination in applying Labor

Code §4663.

Example: San Diego Costco worker loses HALF of permanent disability

compensation due to genetic predisposition (African-American racial heritage) to

hypertension.

An African-American male was injured after exposure to cleaning chemicals while

working for Costco in San Diego. The doctor determined he had a work injury with

permanent disabilities due to hypertension and chronic asthma. The doctor

deducted 50% of the permanent disability compensation due to non-industrial “risk

factors.” These “risk factors” included genetic predisposition, and family history.

The worker had no history of hypertension before the industrial toxic chemical

exposure.

Compensation to disabled workers has been cut by millions each year due to this

discrimination. Schwarzenegger as governor twice vetoed similar measures. The

measure will now go to the Senate.

Learn more... [ RELEASE AB 1155 5.13.11.pdf - 149.5 KB ]

News Release: Two-Year Temporary Disability Limit Harms Severely Injured Workers

2011-05-09T22:35:00Z

Two-Year Temporary Disability Limit Harms

Severely Injured Workers:

Assembly Insurance Committee Passes AB 947 (Solorio),

Extends Disability Insurance for the Seriously Injured

SACRAMENTO, CA - The Assembly Insurance Committee today passed AB 947

(Solorio), to extend workers’ compensation temporary disability insurance beyond

two years for those most seriously injured at work. Current law caps Temporary

Disability insurance at two years’ maximum, except in rare specified cases.

Treatment, waiting for approval of care or surgery, and recovery frequently takes

longer than two years, and temporary disability support often ends before recovery

from the most serious work injuries is complete, The committee passed AB 947,

sponsored by the California Applicants Attorneys’ Association (CAAA), to

address such cases and prevent further hardship to those injured at work. AB 947

passed on an 8 to 4 vote, with the support of Chairman Jose Solorio, Chuck

Calderon, Wilma Carter, Mike Feuer, Mary Hayashi, Nancy Skinner, Norma

Torres, and Bob Wieckowski. The measure now goes to the Assembly floor.

“Workers who sustain severe injuries requiring surgeries often take more than two

years to heal. But after two years, even when not healed, these injured workers lose

the temporary disability insurance payments that are to provide minimum income

until they can return to work,” said Linda Atcherley, a San Diego attorney for

injured workers and CAAA board member. “Delays in getting medical care,

recovery from surgery and the injuries themselves also often take more than two

years. Temporary Disability insurance frequently ends before recovery from the

work injury is complete.”

AB 947 (Solorio) would add injuries that require treatment that cannot medically

be completed within 104 weeks to specified injuries that could qualify for no more

than 240 compensable weeks of temporary disability within a period of 5 years

from the date of injury.

“I worked as a truck driver for 36 years. I injured my left shoulder in 2008 as I

tried to stop a steel rack from hitting me in the face. It jerked my shoulder and I felt

a sudden pop,” said David Cook, an injured Lakeside trucker. “I have had two

operations on my left shoulder and one on my right shoulder. My Temporary

Disability insurance ran out on November 3, 2010, three months before my right

shoulder surgery.”

The measure is supported by the California Labor Federation, the California

Professional Firefighters, and the California Nurses Association, and the

International Brotherhood of Teamsters, among others.

“My temporary disability ran out, and our income was cut below survival level. The

cap on temporary disability is harming injured workers like myself who have

complex injuries and need multiple surgeries,” said Richard Chance, injured

worker. “The insurance carrier's delays and denials of medical care exhausted my

temporary disability. In such a vulnerable position, injured workers often agree to

insurance carriers’ offers to settle their claims for pennies on the dollar.”

Learn More...

Today's Release: Bill targeting hotel worker injuries OK'd by California Senate panel

2011-04-14T19:12:00Z

In case you missed it…

Sacramento Bee

Bill targeting hotel worker injuries OK'd by California Senate panel

Apr. 14, 2011

Nenita Ibe said the pain from a workplace injury wakes her up every night and makes it difficult to wash her hair and do other daily chores with her arms.

The 62-year-old hotel housekeeper said she injured her right shoulder in 2009 while lifting heavy hotel mattresses to change bedsheets. She injured her left shoulder earlier this year doing a similar task. "My life has been just (difficult) because of this injury," said Ibe, who works for the Hyatt hotel in Santa Clara.

Ibe was one of several hotel housekeepers who testified Wednesday before the state Senate Committee on Labor and Industrial Relations, which voted 5-2 to pass a measure that advocatessay will greatly reduce the amount of workplace injuries among hotel housekeepers.

The bill, SB 432, calls for hotels to use fitted sheets that require less lifting of mattresses weighing up to 100 pounds than traditional flat sheets. It also calls for hotels to use mops and long-handled tools so that housekeepers would no longer have to stoop or kneel to scrub bathrooms and floors.

The measure was introduced by state Sen. Kevin de León, D-Los Angeles, and backed by the California Applicants' Attorneys Association and the hotel workers union, UNITE HERE. The proponents cited a 2002 study by the University of California, Berkeley's Labor Occupation Health Program, which found a high level of injuries among housekeepers.

The study noted that more than 75 percent of hotel workers who took part in the study reported workplace injuries and that 73 percent needed to see a doctor for those injuries.

The advocates also pointed to a 2009 study in the American Journal of Industrial Medicine that showed injury rates for hotel housekeepers were higher than the norm, with 5.47 injuries per 100 workers.

The average for all industries was about 3.26 injuries per 100 employees. "What we're talking about is broken backs, we're talking about sciatica, rotator cuff(injuries), we're talking about plantar fasciitis," said de León, whose mother was a housekeeper.

"This almost sounds like the NFL or the NBA. It's not. It's the hotel industry and hotel workers in the state of California."

The California Hotel & Lodging Association and several other hospitality organizations opposed the bill, saying the fitted-sheet requirement alone will cost the industry about $15 million.

Randi Knott, a vice president with the hotel association, said in recent years hotels have seen fewer injuries due to changing bedsheets.

Knott said hotel operators nowadays provide ergonomic training for housekeepers and provide tools such as bed wedges that make it easier to lift mattresses.

The recent push toward green lodging practices, which allow guests to opt out of daily maid services, has greatly reduced sheet changing services, she said.

The bill next goes to the Senate Appropriations committee.

(end)

CAAA Release: Bill targeting hotel worker injuries OK'd by California Senate, 4.14.11

Capitol Weekly: Opinion: Applicants attorneys, Teamsters join forces in workers’ comp

2011-02-25T22:25:00Z

California Applicants Attorneys Affiliate with International Brotherhood of Teamsters to Prevent Workplace Injuries, Improve Medical Care and Disability Compensation for Those Hurt on the Job

By Barry Hinden, President, California Applicants’ Attorneys Association (CAAA) and Barry Broad, California Teamsters Public Affairs Council

Some were surprised by the recent announcement that our two organizations are joining forces to provide better advocacy on California workers’ compensation policy and politics. While some may wonder what workers’ compensation attorneys have in common with truck drivers and other Teamsters, we both represent tens of thousands of working Californians who have been disabled by a work injury. CAAA’s workers’ compensation attorneys know better than anyone how the policies, politics and operations of the workers’ compensation insurance system impact those hurt at work.

CAAA members see every day how the cost of medical care and disability compensation is being shifted from insurance companies to group health plans, and taxpayer-funded social security or disability insurance programs. The Teamsters and other unions bear the burden of that cost shifting. Our members are driven out of the workers’ compensation system and into our health insurance programs when they can’t get employers’ insurance carriers to provide medical treatment or disability compensation. Working together we are better prepared to end this shell game that harms the people we both represent.

Our collaboration will improve results for those we represent. We share the common goals of reducing workplace injuries and improving the medical care and disability compensation that Californians injured on the job require to heal, pay their bills while injured and return to work.

There are powerful lobbies (insurance companies, chambers of commerce, large employers and governments) that oppose our drive for adequate disability compensation; prompt, quality medical care; and, effective return to work programs, so joining forces will help us level the playing field.

The Teamsters have a long history of affiliating groups of like-minded individuals. Both of our organizations are open to working with all professional organizations with which we have a common purpose.

CAAA’s expert attorneys are a fountain of information and intelligence about what is happening in California’s workplaces. They see every day how injuries happen and the aftermath. They are passionate about improving the treatment of Californians who are injured doing the dirty, tough and dangerous jobs needed to keep our economy moving. And Teamsters members do many of those jobs. We are also looking for ways to improve workplace safety to reduce the number and severity of workplace injuries.

We look at our partnership as the beginning of a new era in California workers’ compensation politics and policies. We will put our leaders together to come up with solutions that work for all who deal with this issue. We will coordinate our political efforts as well to ensure that legislators see the real-world impact of the policies they enact.

We look forward to working with all other stakeholders in the workers’ compensation system.

News Release: Nurse’s Assistant Amelia Mendoza dies: Denied Medical Care, Disability Compensation; Heartless Hospital Kicked Her Out after Patient Attack

2010-10-26T23:33:00Z

FOR IMEDIATE RELEASE: Friday, October 22, 2010

Contact: Steve Hopcraft 916/457-5546; mobile 916-956-4592; steve@hopcraft.com

Nurse’s Assistant Amelia Mendoza dies: Denied Medical Care, Disability Compensation; Heartless Hospital Kicked Her Out after Patient Attack

Pasadena, CA - The Mendoza family today sadly announced the passing of Amelia Mendoza, who died last night after suffering an industrially-related injury resulting in her falling into a vegetative state. Mendoza, a 53-year-old Nurse’s Assistant, was attacked twice in the same week by a patient while working at Huntington Hospital.

“Amelia's legacy will be an illustration of the shameless disregard of responsibility by employers and insurance companies to their own hardworking employees. Amelia did not receive the professional medical care she deserved, and neither the employer nor the insurance company cared enough to take action,” said Jamie Berenson, Amelia’s attorney and a co-founder of iWAR. “Amelia's story sadly demonstrates the inefficiency of today’s workers’ compensation system. It’s outrageous that she was never able to get her day in court while she lived. Amelia and her family faced continuous delays while the hospital and its insurers dragged out this case. Now, Amelia is dead.”

As a result of Huntington Hospital's baseless denial of her claim, Amelia was thrown out of the hospital and the entire burden of care fell on Amelia’s husband, Ralphael. Ralphael has been by her side, tending to her physical needs since her stroke and release from Huntington Hospital. He will continue to pursue the matter on her behalf. Mendoza, of West Covina, was attacked twice by the same patient in a week while working at Huntington Hospital in Pasadena in 2009. Less than three hours after the hospital’s clinic turned her away, Amelia suffered a stroke. The attacks caused bleeding in her brain. Amelia fell into a vegetative state, and contracted pneumonia.

Just last week, Mendoza’s children, husband and supporters protested Huntington Hospital’s denial of medical care and disability compensation. “Workers’ compensation insurance companies regularly deny care and disability compensation to nurses, nurses’ assistants, and thousands of others injured at work, just like Amelia Mendoza,” said Berenson.

News Media Advisory: Nurses, Injured Workers to Release New Anti-Whitman Ad Featuring Comatose Nurse’s Assistant Amelia Mendoza

2010-10-26T21:34:00Z

NEWS MEDIA ADVISORY FOR: Thursday, October 14, 2010

Contact: Steve Hopcraft 916/457-5546; mobile 916-956-4592; steve@hopcraft.com

Nurses, Injured Workers to Release New Anti-Whitman Ad Featuring Comatose Nurse’s Assistant Amelia Mendoza;

Protest Denial of Care for Mendoza: Insurance Company Kicked Comatose Nurse’s Assistant Out of Hospital

The California Nurses Association (CNA) and Injured Women After Reform (iWAR) today announced they will protest the continued denial of professional medical care, and release a new anti-Whitman ad featuring certified nurse assistant Amelia Mendoza, 53, of West Covina. Mendoza was attacked twice in the same week by a patient while working at Huntington Hospital in Pasadena in 2009. Amelia suffered injuries that resulted in her falling into a vegetative state. The groups will release a new ad featuring Mendoza and California Nurses Association Co-President Deborah Burger. “Meg Whitman praises a broken workers’ compensation insurance system that denies care and disability compensation to nurses, nurses assistants, and others injured at work, just like Amelia Mendoza. We want Californians to know whose side Whitman is on,” said Burger.

WHAT: Protest to release anti-Whitman ad, support comatose nurse’s assistant

WHO: Jamie Berenson, iWAR leader and Attorney for Amelia Mendoza’s family; Cathy Mendoza, Amelia’s daughter; supporters, and protesters

WHEN: Thursday, October 14, 2010, 11 a.m.

WHERE: Outside Huntington Hospital, 100 W. California Blvd. Pasadena, California 91105

News Release: GOVERNOR AGAIN VETOES BILL TO BAN BIAS IN DISABILITY CLAIMS: Would have Prohibited Insurers from Penalizing Ethnic Minorities, Women, Older Workers

2010-10-26T21:16:00Z

FOR IMMEDIATE RELEASE: Tuesday, Sept. 28, 2010 Contact: Steve Hopcraft 916/457-5546; Steve@hopcraft.com

GOVERNOR AGAIN VETOES BILL TO BAN BIAS IN DISABILITY CLAIMS:

Would have Prohibited Insurers from Penalizing Ethnic Minorities, Women, Older Workers; Bill Responds to Dollar Tree, Other Bias Cases

SACRAMENTO - The California Applicants Attorneys Association (CAAA) today criticized the governor for his veto of Sen. Mark DeSaulnier’s (D – Martinez), legislation (SB 145) to ban race, gender, genetic bias in handling workers compensation disability claims. “SB 145 would have prohibited reducing permanent disability compensation on the basis of such factors as race, gender, and age. Employers are not allowed to discriminate against an employee because of his or her race, gender, or age,” said Adam Dombchik, Legislative Chair for CAAA, whose members represent those injured at work. “It’s past time to ensure that employees with work-related injuries also should be protected from such discrimination. They should be treated the same as their healthy co-workers.”

Here are some other examples of discrimination in workers compensation benefits:

An African-American worker who developed hypertension and pulmonary disease after long-term exposure to toxic chemicals on the job lost nearly half his permanent disability compensation because the doctor concluded that African-Americans are more susceptible to hypertension. The man had no history of hypertension.
A doctor admitted under oath that an African-American man with a heart attack would receive lower benefits than a white man with the same injury.
Female workers, especially those over 40, are receiving less compensation for carpal tunnel injuries than men – simply because women over 40 are those most likely to develop carpal tunnel injuries.

Gov. Schwarzenegger vetoed similar legislation last session, saying it wasn’t necessary. But according to Dombchick, the discriminatory practices continue because the provisions of the 2004 law are being misconstrued. “The law needs to be clarified to put an end this otherwise unlawful discrimination and to ensure that workers injured on the job receive fair compensation,” Dombchik said.

News Release: California Applicants' Attorneys Association Announces 2010-11 leadership team, Priorities for coming year

2010-10-26T20:17:00Z

FOR IMMEDIATE RELEASE: Friday, September 24, 2010

Contact: Steve Hopcraft 916/457-5546, Steve@hopcraft.com

SACRAMENTO, CA - The California Applicants’ Attorneys Association (CAAA), whose members represent Californians injured on the job, today announced that it has installed a new president and team of officers for the coming year. CAAA aims to provide California injured workers the opportunity for fair workers' compensation benefits and re-entry into the community as productive citizens. Barry Hinden, founder and managing partner of Hinden & Breslavsky in Los Angeles, has been named President of the California Applicants' Attorneys Association (CAAA) for 2010-11. “CAAA is a voice for the rights and dignity of Californians injured while doing their jobs,” said Hinden. “I am proud to lead such a voice at this critical time for injured workers in our state. I look forward to working to restoring compensation for permanent disabilities and prompt, adequate medical care for those injured at work.”

Mr. Hinden received a Bachelor of Arts degree from California State University, Northridge in Psychology, and a law degree from Southwestern University School of Law in 1974, where he is an adjunct professor. Barry is an arbitrator, judge pro tem and has authored more than 75 books or articles and has conducted more than 100 seminars teaching the principles of workers’ compensation. Hinden was named a southern California’s “Super Lawyers” in 2009 and 2010. CAAA’s elected leaders for 10-11 also include: Adam Dombchik Esq., Legislative Chair; Brad Chalk, Esq., President-Elect; Lawrence Stern, Esq., Treasurer; and, Jim Butler, Esq., Secretary.