Employee or Independent Contractor? A Huge Difference
May 5, 2008 14:47

Employee or Independent Contractor? A Huge Difference

Barack Obama and his Senate colleague Dick Durbin say that employers who misclassify workers' as independent contractors are saving money but shifting huge financial burdens to these employees.

By classifying a worker as an "independent contractor" instead of an "employee," an employer pays less in employment taxes and workers' compensation, sometimes cutting costs by 30 percent. Misclassified workers have the employer's tax burden shifted onto them as if they were self-employed, meaning higher taxes for working-class Americans
and a growing tax gap. These workers are also denied basic employee
protections, such as workers compensation and overtime pay.

Such misclassification is a form a fraud - and it's probably the most prevalent type of workers' compensation fraud. Workers suffer, for sure, but so do honest employers, who end up paying higher workers' comp insurance premiums.

Injured policeman not covered by workers' comp, city says
May 13, 2008 09:41

An Iowa policeman injured in a fall is not entitled to workers' compensation benefits, the Keokuk City Attorney said recently.

Officer Scott Kindig slipped in an icy parking lot on his way back to his car, after he had finished up his day's shift. Kindig broke his wrist in the fall.

However, Keokuk City Attorney Tom Marion says that because the fall took place after Kindig was off-duty, he isn't entitled to workers' compensation benefits.

Massive profits may be coming to an end for West Virginia's worker's comp provider
May 16, 2008 12:40

BrickStreet Insurance has earned hundreds of millions of dollars in profit by running West Virginia's workers' compensation program. But experts believe those salad days may soon be coming to a close.

West Virginia will open its worker's compensation process up to other insurers this July, meaning expenses are going to increase for BrickStreet while revenues are likely to decline. In addition, the company will have to pay taxes after a three-year tax exemption, which has saved the company $194 million, will end.

Group Seeks to Extend Comp Benefits for Permanently Disabled Workers
May 21, 2008 08:46

A workers rights group in Mississippi is lobbying to change the time limit for how long permanently injured workers can collect workers' compensation benefits. Mississippi is one of 17 states with a cap on workers' compensation. People who are permanently injured can collect benefit for 8 ½ years, but after that, they're on their own.

The Mississippi Workers Center for Human Rights wants that cap removed because it argues that many injured workers, especially younger, don't qualify for other assistance once their workers' comp benefits run out. "We see workers everyday who are injured and not old enough for social security," said Jaribu Hill Executive Director of the Mississippi Workers Center. "They're deeply thrust into a cycle of poverty and public assistance that they didn't want to be in. They were gainfully employed, they worked their way."

Texas County Reduces Workers' Comp Costs Through Safety Efforts
May 27, 2008 10:38

A Texas county is proving that employers can reduce their workers' compensation costs by implementing safety measures. Six years ago, a record $2.87 million workers' compensation insurance premium in Nueces County, Texas, contributed to a $3.6 million budget... (Read Article)