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On January 10, 2024, the Department of Labor (DOL) ushered in a new era for independent contractors with a comprehensive rule outlining six key criteria for classification. This landmark regulation aims to bring clarity and fairness to the classification process while imposing penalties for those who fail to comply. Let's delve into these criteria and the consequences of non-compliance. The Six Criteria Explained: 1.       Nature and Degree of Control:  This criterion examines the level of control exerted by the employer over the worker's tasks, schedule, and methods. Greater autonomy typically aligns with independent contractor status. 2.       Opportunity for Profit or Loss: Independent contractors bear the risk and potential for financial gain or loss based on their efforts and investments, distinguishing them from employees. 3.       Skill Required: The complexity and specialized nature of the work performed are considered. Jobs requiring specific expertise may lean towards independent contractor classification. 4.       Permanence of the Working Relationship: The duration and regularity of the working relationship are evaluated. Long-term or ongoing engagements may indicate an employment arrangement. 5.       Integration of Work into the Employer's Business: The extent to which the worker's services are integral to the employer's core operations is assessed. Essential tasks lean towards employee classification, while supplementary work tends towards independent contractor status. 6.       Degree of Independence: This criterion evaluates the worker's autonomy, including the ability to work for multiple clients and operate as a separate entity from the hiring company. Penalties for Non-Compliance: Failing to adhere to the DOL's classification criteria can result in severe penalties for employers. These penalties may include: •        Back Wages and Benefits: Misclassified workers may be entitled to back pay, overtime, and benefits they were denied due to misclassification. •        Civil Penalties: Employers found violating the rule may face civil penalties imposed by the DOL, including fines and monetary sanctions. •        Legal Costs: Legal proceedings resulting from misclassification can incur significant legal fees and expenses for employers. •        Reputational Damage: Non-compliance can tarnish a company's reputation, leading to loss of trust and credibility among stakeholders. •        Injunctive Relief: Courts may issue injunctions requiring employers to cease certain practices or take corrective actions to comply with the law. Navigating Compliance: To avoid the pitfalls of misclassification and ensure compliance with the DOL rule, employers should: 1.       Familiarize themselves with the six criteria outlined in the rule. 2.       Conduct thorough assessments of worker relationships to determine proper classification. 3.       Seek guidance from legal and HR professionals to mitigate risks and ensure compliance. 4.       Regularly review and update classification practices to align with evolving regulations. Summary: In conclusion, the January 10, 2024, DOL rule for independent contractors introduces clear classification criteria and imposes penalties for non-compliance. By understanding these criteria and taking proactive steps to comply, employers can navigate the complexities of worker classification with confidence and integrity. Work Comp Associates can help your company. Contact us to make your policy easy to manage and help you save money.

April 19, 2024 A trial judge improperly applied a contingency fee multiplier that resulted in increased attorneys fees awarded to a claimant’s lawyer in a workers compensation case, a Florida appellate court ruled Friday. The District Court of Appeal of Florida reversed a lower court decision that had awarded $14,310 in claimants legal fees in a lawsuit brought by Carlos Vargas IV against Foot & Ankle Center of Florida LLC. Mr. Vargas, a workers comp claimant, sued over claims that the center placed an illegitimate lien on his workers comp settlement proceeds after a center physician treated him for a work related injury. Mr. Vargas was later granted summary judgment on his claims. Read more

April 15, 2024 The U.S. Occupational Safety and Health Administration said Monday that it cited a Florida contractor following the September 2023 heat-related death of a sugar cane farm worker. OSHA cited Belle Glade-based McNeill Labor Management Inc. for one “serious” violation for exposing workers to hazards associated with high ambient heat while working under direct sunlight and proposed $27,655 in penalties. The company has contested the citation and proposed penalties before the Occupational Safety and Health Review Commission. The worker, who came to Florida from Mexico to work at the farm, died on his first day on the job, OSHA said. The man suffered fatal heat-related injuries while working in an open field as the heat index reached 97 degrees. Read more

April 12, 2024 'Regulations promulgated in Washington or Tallahassee are less likely to be appropriate than in almost any other area of regulation.' Florida cities and counties will be barred from requiring businesses to give water breaks or other “cooling measures” to employees who work outside after Gov. Ron DeSantis signed HB 433. The measure also removes the power of local governments to require contractors to pay higher wages, or use higher pay as an incentive in awarding bids. The new law, which takes effect July 1, also bars cities and counties from requiring employers to give workers their work hours ahead of time. Read more

April 11, 2024 Psychosocial hazards in the workplace are causing physical and psychological harm to employees at increasing rates and driving a call to improve worker well-being, according to a report released Wednesday by the National Institute for Occupational Safety and Health. Psychosocial hazards are on the verge of surpassing many other occupational hazards, the report states. This could lead to a decrease in employee health, an increase in workplace injuries and disabilities and potentially higher workers compensation costs. “The extensive and cumulative impacts of these exposures represent an alarming public health problem that merits immediate, increased attention,” NIOSH wrote. Psychosocial hazards can also lead to burnout, cardiovascular disease, depression, high blood pressure, sleep disturbances and suicidal ideation, according to NIOSH. Read more

April 10, 2024 PALATKA, FL – As he had many other days, the morning shift welder arrived at 5 a.m. to work at St. John's Ship Building Inc. in Palatka on Aug. 28, 2023. Tasked with doing some fabrication work in a 4-foot by 8-foot space in a ship’s hull, the employee began work unaware that fatal suffocation would soon end his life. Less than two hours after entering the ship, a supervisor found the unconscious welder and signaled for help, only to fall unconscious as well. A third employee appeared, alerting EMS and the Palatka Fire Department who soon transported all three workers to a nearby hospital. Despite emergency treatment, the welder died from a lack of oxygen. The supervisor and the third worker received medical treatment and were released. Inspectors with the U.S. Department of Labor's Occupational Safety and Health Administration determined St. John’s Ship Building exposed workers to oxygen deficiency by sending the welder into a confined space without first testing the air for oxygen content. The presence of welding gas in the space created an oxygen-deficient atmosphere. Read more

April 5, 2024 FORT LAUDERDALE, Fla. — The Southeast Third Avenue bridge over the New River in downtown Fort Lauderdale reopened Friday morning after part of a crane collapsed Thursday afternoon, killing a construction worker and injuring three people on the ground. Fort Lauderdale Police identified the worker Friday as 27-year-old Jorge De La Torre. A large, blue piece of steel from a crane at the Gables Riverwalk construction site at 333 N. New River Drive E. smashed into two cars on the drawbridge, landing on top of a van and crushing the passenger side of the vehicle. The front of a Tesla was also severely damaged. The bridge was closed to boats and cars until about 9 a.m. Friday, when the city said both car and boat traffic was restored. No signs of the accident were evident on the bridge itself Friday morning except for a remnant of caution tape. Occupational Safety and Health Administration has opened an investigation with Phoenix Rigging & Erecting LLC, Kast Construction, LLC, and Maxim Crane Works LP, spokesperson Erika Ruthman wrote in an email Friday morning. Kast Construction has received multiple OSHA violations over issues relating to falls and a lack of guardrails, records show. In 2023, the company was fined two separate times, totaling over $20,000, for failing its “duty to have fall protection” standard. Read more

April 4, 2024 A Florida appellate court on Wednesday reversed a decision granting summary judgment to a contractor who was sued by a worker who alleges he was injured during a fall while he was securing a tarp to the roof of a two-story residence in preparation for an insurance inspection. The Florida Third District Court of Appeal found that a trial court wrongly determined Claudio Navarro failed to establish he was working under the direction of Alfredo Borges when he was injured in October 2017. Mr. Borges sent Mr. Navarro to Palmetto Bay to place a tarp on the roof of a home damaged during Hurricane Irma, the ruling states. Mr. Navarro installed the tarp without incident. Days later, Mr. Navarro, on a different job site, overheard workers discussing problems with the tarp, after which Mr. Borges “had given the order” for Mr. Navarro to fix the issue prior to the insurance inspection, the ruling states. Mr. Navarro fell while attempting to correct the tarp problem without safety equipment and was injured. Read more