March 1, 2024 A U.S. Department of Labor rule that takes effect this month may result in more contract workers being classified as employees, potentially requiring employers to provide benefits and insurance coverage such as workers compensation and possibly exposing them to employment-related lawsuits. The Employee or Independent Contractor Classification Under the Fair Labor Standards Act rule, which was finalized Jan. 10 and rescinds a Trump administration rule, covers employment classification under the FLSA, but employers worry it might have broader influence. Government officials say the rule provides a clearer analysis for employers to use to determine a worker’s employment status. It re-adopts an enhanced economic realities test for worker classification that was in effect under an Obama administration rule. The new rule contains a six-factor test to guide employers in determining a worker’s employment status under the FLSA (see box), whereas the Trump administration rule had a two-factor test. Read More

March 1, 2024 Post-traumatic stress disorder is a commonly misunderstood mental illness that is increasingly a component of workers compensation claims, raising concerns over how to navigate and close the often complex claims. Mental health experts say that adherence to guidelines for the diagnosis and treatment of PTSD is essential when treating affected workers. “The prognosis for well-treated PTSD is actually quite good,” said Les Kertay, Chattanooga, Tennessee-based behavioral health medical director for Genex Services, an Enlyte LLC company. “People tend to recover.” State lawmakers have repeatedly sought to expand or introduce presumption laws that would make PTSD a compensable illness for some occupations allowing for more so-called mental-mental claims, or mental claims that result from a psychological event. The push to expand workers comp into the mental health arena has mostly related to first responders, but there’s a growing interest in broadening eligibility for all workers. Read More

February 28, 2024 A new workplace survey reveals a disconnect between employers prioritizing health and dental insurance, health savings accounts (HSAs) and charitable contributions, while employees prioritize increased pay and 401(k) matches. The annual “Voice of the American Workplace” survey which covers three areas — financial, mental and physical — found that American workers expressed a 15 percent year-over-year increase in concerns over financial health. The survey also revealed that 91 percent of employers experienced turnover rates exceeding 10 percent in 2023. Employee expectations, particularly regarding compensation, are on the rise, with 80 percent of employers struggling to meet demands for increased compensation. This year’s survey examined both employer and employee perspectives, emphasizing the crucial need for aligning expectations with available resources. Read More

February 28, 2024 MIAMI, Fla. - Today, Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Gustavo Antonio Munguia for Workers’ Compensation Premium Fraud and Grand Theft. Munguia, the owner of American Iron Group Corp was actively concealing his payroll to avoid paying a higher workers' compensation premium. According to Travelers Property and Casualty Company of America, had the additional payroll been reported, American Iron Group Corp would have been assessed approximately $253,000 in additional premium charges. CFO Jimmy Patronis said, “The State of Florida takes insurance fraud very seriously and I will not tolerate any fraudulent activity when it comes to worker’s compensation. It puts employees in danger and drives up insurance rates for all Florida businesses. My department is committed to upholding the law and ensuring that these bad actors are caught and held accountable. Thank you to our fraud detectives for your hard work in this case and demonstrating our dedication to protecting Florida’s workers and businesses who play by the rules.” The investigation revealed that Munguia on behalf of American Iron Group Corp, failed to notify his workers' compensation carrier of significant payroll changes. Detectives were able to determine during the policy period, Munguia collected more than $3.1 million in labor costs paid from contractors to his company. According to Travelers Property and Casualty Company of America, had the additional payroll been reported, American Iron Group Corp would have been assessed an additional $253,000 in premium charges. On February 28, 2024, Munguia was arrested and booked in the Miami-Dade County Jail where he was charged with Workers' Compensation Premium Fraud and Grand Theft. Both are first degree felonies and if convicted on all charges, Munguia faces up to 60 years in prison.

February 26, 2024 Younger workers have become injured on the job at higher rates than their older counterparts in states that have legalized recreational marijuana, according to a study published Friday in the JAMA Health Forum. Researchers from San Diego State University, Bentley University and the University of Wisconsin-Parkside found that recreational marijuana law adoption correlated with a statistically significant increase in workplace injuries among workers between the ages of 20 and 34 between 2006 and 2020. Recreational marijuana laws were associated with a 12.9% increase in workplace injuries per 100 full-time employees, the study shows. Read More

February 8, 2024 When workers drop out of the workforce due to a debilitating injury, they are more likely to develop serious health problems and an elevated risk of death, studies by West Virginia University researchers have shown. “The results suggest that disability itself may impact mortality risks. If confirmed, these results reinforce the importance of return to work and other efforts to reduce disability,” reads the conclusion to one of the studies. The studies underscore what return-to-work advocates, insurers and some staffing firms, including Florida’s Remployability, have said for years: Without regular work, some injured employs become less active, gain weight and develop secondary problems such as diabetes. Other reports have shown a link between disability time off work and increased opioid use. Read More

February 5, 2024 TALLAHASSEE, Fla. (AP) — A year after Florida enacted a law making it more difficult for employers to hire immigrants illegally, a move that has reportedly exacerbated a labor shortage and has added to property insurance repair costs, the state House passed a bill Thursday to let 16- and 17-year-olds work longer and later hours. Supporters said teenagers and their parents know how to best manage their time and activities and lifting employment restrictions will help them build careers and earn money, especially with the current labor shortage. Opponents said the changes would make it easier for employers to exploit children and longer hours could negatively affect schoolwork. “Nearly 1 million searches have been performed for ‘How can I get a job as a teen.’ They want to work. This bill gets government out of their way to choose a path that’s best for them,” said Republican Rep. Linda Chaney, who sponsored the bill. The bill would remove restrictions prohibiting 16- and 17-year-olds from working more than eight hours when they have classes the next day and from working more than 30 hours a week when school is in session. The House passed it on an 80-35 vote. Read More