Author Archives: Rod Rehm

Failure to Provide Workers’ Compensation for Employees is a Crime

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I saw a recent newspaper story from New Jersey telling an employer was found guilty of a crime for failing to provide workers compensation benefits for the employees of his tree trimming service.

I can’t recall the last time I read of such a conviction, although virtually every state makes failing to provide workers compensation a crime and wide spread employer evasion by labeling workers as independent contractor rather than employees. Recent studies find misclassification to occur a 30% rate. The costs of misclassification are in the hundreds of billions with workers being denied treatment and income replacement, government losing withholding taxes, unemployment benefit taxes and lawful employers paying higher insurance premiums for workers compensation and healthcare to name a few costs.

I run into these scoff law employers all too frequently. If more prosecutors treated them as the criminals, they are perhaps more working people would be treated with the dignity and respect they deserve.

The offices of Rehm, Bennett & Moore, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in Misclassification, Workers' Compensation, Workplace Injury and tagged .

Partner Jon Rehm To Moderate Panel At American Association Of Justice’s Annual Convention

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Rehm Bennett and Moore partner, Jon Rehm, will be moderating the Workers Compensation and Workplace Injury Section Continuing Legal Education (CLE) program on July 23rd  at the upcoming American Association of Justice (AAJ) Annual Convention in BostonRehm served as chair of the AAJ Workers’ Compensation and Workplace Section for 2016-2017.

“A national CLE for workers compensation can be difficult to organize because workers’ compensation laws are so state specific. But there are some trends that effect all practitioners and federal laws that impact the workers’ compensation practice that you can and should discuss at a national level,” Rehm said.

“ I appreciate the support of the firm in being able to serve AAJ in this capacity. I am also thankful to AAJ staff for their help in organizing the CLE. I would also like that thank my colleagues Robert Riojas, Deb Kohl and Aida Carini for taking the time to write papers and present on the CLE.”

“I also appreciate the help of the other members of the Executive Committee throughout the year.”

AAJ is the largest plaintiff’s lawyer organization in the United States with roughly 20,000 members. AAJ represents the interests of plaintiff’s lawyers and their clients on a national level.

The offices of Rehm, Bennett & Moore, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

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Falls Cause Rising Number of Brain Injuries in Older Adults

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Today’s post comes from guest author Anthony L. Lucas, from The Jernigan Law Firm.

According to the latest report from the CDC, from 2007 to 2013, the rate for traumatic brain injuries that resulted in emergency department visits, hospitalizations, or deaths increased 39 percent. Traumatic brain injuries contribute to about 30 percent of all injury deaths. It was initially believed that the increase in brain injuries was caused by rising awareness of sports-related head injuries in children and young adults. However, after researchers reviewed the data, they found that the biggest driver in the increase of brain injuries was due to older adults.

The rate for reported brain injuries for elderly Americans increased 76 percent from 2007 to 2013, much greater than any other age group. This increase is believed to be due to falls. Many times they are not reported, and according to Dr. Lauren Southerland, an Ohio State University emergency physician “what may seem like a mild initial fall may cause concussions or other problems that increase the chances of future falls – and more severe injuries.

To address fall-related brain injuries, the CDC has developed the STEADI (Stopping Elderly Accidents and Injuries) initiative to help primary care providers address their patients’ fall risk. The CDC has also launched a HEADS UP awareness campaign to help individuals recognize, respond to, and minimize the risk of concussion or other serious brain injury.

The offices of Rehm, Bennett & Moore, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in Brain Injuries, falls and tagged , , , , .

Fighting to protect workers rights

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Workers compensation law is slightly more than 100 years old. It has become a fundamental protection for workers and their families. Sadly, insurance and business interests have been attacking this basic law for more than 25 years. The effort has been nearly continuous with legislative and administrative proposals aimed at lower benefits to workers and their families  while raising profits for business and insurance.

            This law firm believes we have an obligation to fight these attacks on behalf of our clients and their families.  The past week is an example.  Rod Rehm spoke to a group of lawyers  on how to defeat these attacks at the Northwest Regional Conference of the Workplace Injury Law Advocacy Group www.wilg.org held in Whitefish, Montana. The event was attended by Michael Gruber, Brooklyn, NY, current President of WILG, Amie Peter, Edmonds WA, President-elect of WILG, Chuck Davoli, New Orleans, LA past President of WILG and chaired by Tom Murphy of Great Falls, MT along with a hearty group of workers compensation lawyer from the Northwest part of the U.S.A.

            It was great to share information with and learn new and better ways to win our cases and court and continue to defend the law in the legislature. WILG is a great organization fighting for workers 24/7/365 all across the USA.

            Jon Rehm testified at the Business and Labor Committee of the Nebraska Legislature on behalf of the Nebraska Association of Trial Attorneys, NATA,  www.nebraskatrial.com concerning efforts to limit drug prescriptions for our clients. Our office and NATA is concerned that efforts to attack opioid addiction will harm our clients unless written carefully. Protecting good medical care for injured workers is more important than saving prescription costs for business and insurance under the guise of attacking addiction.

            Testifying in the legislature is a regular part of being a lawyer at Rehm, Bennett and Moore. We actively work to protect workers’ rights in every forum we can.

The offices of Rehm, Bennett & Moore, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in drug formularies, NATA, state legislatures, Unicameral, WILG.

Age Discrimination Claims in Workers’ Compensation Settlements?

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Today’s post comes from guest author Anthony L. Lucas, from The Jernigan Law Firm. The post addresses why some severance agreements may not be enforceable. Often times a workers compensation case will involve employment law issues, which is why an injured worker should consider consulting an attorney who is knowledgeable in both areas of law.

When an employee settles a workers’ compensation claim, the employer often wants to terminate the employee and is cautious because of potential age discrimination. The Age Discrimination in Employment Act (ADEA), 29 U.S.C. 621 et seq. (2015), prohibits companies with 20 or more employees from discriminating against a person (40 years of age or older) because of his or her age with respect to any term, condition, or privilege of employment, including hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training.

An individual who has been discriminated against because of his or her age may be entitled to back pay, reinstatement, hiring, promotion, front pay, liquidated damages, and court costs and attorney fees.

To avoid potential discrimination claims after a workers’ compensation settlement, the employer often seeks an ADEA waiver at the same time. For an ADEA waiver to be enforceable, it must:

  • Be in writing and understandable;

  • Specifically refer to ADEA rights or claims;

  • Not waive an individual’s future rights or claims;

  • Be in exchange for valuable consideration in addition to anything of value to which the individuals is already entitled;

  • Advise the individual to consult with an attorney before signing the waiver;

  • Provide the individual with a certain amount of time to consider the agreement:

    • 21 days for individual agreements

    • 45 days for group waiver agreements

    • A “reasonable” amount of time for settlements of ADEA claims

  • Provide a period of at least 7 days following the execution of the agreement, in which the agreement is not effective or enforceable, in which the individual may revoke the agreement.

Some termination agreements may not be enforceable, and the individual may have a valid claim to pursue under the ADEA.

The offices of Rehm, Bennett & Moore, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in Age Discrimination, Workers' Compensation and tagged , , , .

Opioid Task Force, Recent Studies, and CDC Opioid Recommendations

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Today’s post comes from guest author Kristina Brown Thompson, from The Jernigan Law Firm. Nebraska is considering legislation to implement drug formularies to control opioid use among injured workers. I believe Nebraska should consider Massachusetts program of essentially having a workers compensation drug court to deal with opioid use.

The North Carolina Industrial Commission recently joined many other states (i.e. Massachusetts) in tackling the issue of opioids in the workers’ compensation cases by creating a Workers’ Compensation Opioid Task Force. The goal of the task force is to “study and recommend solutions for the problems arising from the intersection of the opioid epidemic and related issues in workers’ compensation claims.” According to the Chair, “[o]pioid misuse and addiction are a major public health crisis in this state.” 

As of last June, a study by the Workers’ Compensation Research Institute (WCRI) noted “noticeable decreases in the amount of opioids prescribed per workers’ compensation claim.” From 2012 – 2014, “the amount of opioids received by injured workers decreased.” In particular, there were “significant reductions in the range of 20 to 31 percent” in Maryland, Massachusetts, Michigan, Oklahoma, North Carolina, and Texas. 

Additionally last March, the Centers for Disease Control and Prevention (CDC) issued new recommendations for prescribing opioid medications for chronic pain “in response to an epidemic of prescription opioid overdose, which CDC says has been fueled by a quadrupling of sales of opioids since 1999.” 

Currently, the CDC’s recommendations for prescribing opioids for chronic pain outside of active cancer, palliative, and end-of-life care will likely follow these steps:

1.  Non-medication therapy / non-opioid will be preferred for chronic pain.

2.  Before starting opioid therapy for chronic pain, clinicians should establish treatment goals and consider how therapy will be discontinued if benefits do not outweigh risks.

3.  Before starting and periodically during opioid therapy, clinicians should discuss with patients known risks and realistic benefits of opioid therapy. 

The offices of Rehm, Bennett & Moore, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in CDC, centers for disease control and prevention, chronic pain, Health, opioid, task force, work comp, Workers' Compensation and tagged , , , , , , , .

2016 Top Ten Workers’ Compensation Fraud Cases

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Leonard JerniganWhat have you heard about fraud in workers’ compensation? Respected colleague Professor Leonard Jernigan presents his top 10 workers’ compensation fraud cases in today’s blog post. Professor Jernigan is from The Jernigan Law Firm in North Carolina and also serves as an Adjunct Professor of Workers’ Compensation Law at the N.C. Central University School of Law.

Adding in this year’s tally of cases to previous ones, the economic fraud of non-workers involved in the workers’ compensation system is dominant by a 77 non-workers’ fraud to 3 workers’ fraud margin, for the eight years total that Professor Jernigan has compiled the list. Be sure to think of this article the next time someone tells you about the need for workers’ compensation “reform” on the state level because of workers’ compensation fraud of employees – ask that person if they have any references for the alleged worker fraud – and feel free to use this blog post as a reminder that non-worker fraud is a much bigger issue in workers’ compensation systems.

It is unfortunate that this article is necessary, but I appreciate the important work Professor Jernigan does to compile these fraud cases each year. It makes for very interesting reading and reminds folks that fraud occurs on both sides of the workers’ compensation debate, though from a dollar amount, worker fraud is minimal compared to non-worker fraud.

Here are the links to previous years’ posts that have run on our firm’s blog, which were published in 2016, 2015, 2014, and 2013, so they include cases that were compiled regarding 2015, 2014, 2013, and 2012, with the post below being 2016’s edition, to provide more historical context of this issue.

Here’s to a safe and productive 2017 for all.

Number Value
Non-Employee Fraud Cases 10 $ 412,000,000
Employee Fraud Cases 0 $ 0
Total $ 412,000,000

Four of the top ten cases in 2016 are from perennial offender California, three from Florida, one each from Massachusetts and Texas, and one involving 20 different states. The misclassification of employees by employers continues to create dramatic financial fraud, with resulting cost shifting, lost tax revenues and hardship to inured employees. As we noted last year, while the “gig economy” pioneered by technology companies has lead to debate about new classifications for workers, these companies remain subject to our laws. We are starting to see widespread litigation and settlements like Uber’s $100 million payment to disgruntled drivers in California and Massachusetts. We’ll keep tracking these new developments in the context of the misclassification and fraud actions that we’ve been tracking for many years.

  1. (National) FedEx to Settle Driver Lawsuits in 20 States for $240 Million (6/16/16)
    FedEx to Settle Driver Lawsuits in 20 States for $240
    FedEx Ground Systems, Inc. has agreed to pay $240 million to resolve claims by 12,000 FedEx drivers in 20 states. FedEx was labeling the drivers as independent contractors to avoid paying additional taxes, fringe benefits, health care costs, workers’ compensation insurance, and much more. The drivers were also not paid overtime or reimbursed for expenses.
  2. (California) Seven People Charged in $98 Million Workers’ Compensation Fraud Case (6/7/16)
    Seven in Riverside County charged with $98M medical fraud

    (Left): Payman Heidary Top row: Touba Pakdel Nabati, Jason Yang, Cary Abramowitz Bottom row: Quynam Nguyen, Ana Solis, Gladys Ross (Photo: Riverside County Sheriff’s Department)

    Seven people have been indicted with 107 felonies in a business scheme designed to commit workers’ compensation fraud. The ringleader, Peyman Heidary, owned or ran numerous businesses, including law firms and health clinics, and used other people to disguise his involvement and create an illegal ownership structure. The clinics were found to have inflated billings to insurance companies by exaggerating patient injuries and treatments. The businesses fraudulently billed more than $98 million to 18 insurance companies, resulting in the businesses receiving over $12.4 million in payments.

  3. (Texas) Labor Department “Mole” Helps Business Maintain $30 Million Workers’ Compensation Scam (6/28/16)
    Tshombe Anderson

    Tshombe Anderson

    Lydia Taylor worked at the U.S. Department of Labor in Dallas and used her position to give her family members information about federal workers’ compensation claims and warn them when suspicions arose about their fraudulent billing. Taylor’s uncle, Tshombe Anderson, was the ringleader of the group. Anderson and others formed several businesses that fraudulently billed the federal workers’ compensation program $30 million for unneeded and unrequested medical equipment for rehabilitation patients.

  4. (Florida) Fake Construction Company used to Process over $17.4 Million of Fraudulent Payroll (3/28/16) Orquidea Quezada set up Orquicely Construction LLC and used the company to process payroll for subcontractors who employed hundreds of people. In exchange for her services, Quezada kept a five percent fee. The scheme allowed the contractors to avoid paying payroll taxes, workers’ compensation insurance, and to conceal the employment of undocumented workers.
  5. (Florida) Fake Construction Company Used to Cash $7.4 Million in Undocumented Worker Payroll (7/7/16)
    Yamil Sanjurjo Cordero and Sandro Mendoza Alvarado

    Yamil Sanjurjo Cordero, 33, and Sandro Mendoza Alvarado, 35. (Sun Sentinel / Broward Sheriff’s Office Handout)

    Two men set up a shell company, Sunrise All Contractor Corp., to receive payments and cash checks for a fee on behalf of other companies that would then pay their undocumented workers. The scheme enabled employers to avoid workers’ compensation premiums and payroll taxes. These schemes are popular among employers of undocumented employees because these employees are less likely to blow the whistle on the fraud out of fear of exposing their undocumented status.

  6. (California) Insurance Company Agent Misappropriated $7.3 Million and Unable to Pay Workers’ Compensation Claims for California Indian Tribe (8/19/16) The operator of Management Resources Group California LLC, Gregory J. Chmielewski used more than $7.3 million from the company’s reserve accounts for his own personal investments. The company managed another company, Independent Management Resources, which sold workers’ compensation insurance to California Indian tribes. Chmielewski’s actions resulted in the company being unable to cover 117 claims.
  7. (California) Contractor Cheated Workers’ Compensation Insurer Out of More Than $5.4 million in Premiums(10/5/16) State of California Department of InsuranceMichael Harold Kreger, the owner of Michael Kreger Contracting was sentenced to 9 months in jail, 5 years of probation, 1500 hours of community service, and ordered to pay restitution of more than $5.4 million for underreporting his payroll and committing insurance fraud. Mr. Kreger cheated his company’s workers’ compensation insurer out of more than $5.4 million and his employees out of adequate protection for potential workplace injuries.
  8. (Massachusetts) Construction Companies Ordered to Pay $2.6 Million for Fraud in Misclassifying Workers (8/2/16) AB ConstructionForce Corporation, AB Construction Group, and employers Juliano Fernandes and Anderson Dos Santos were found by the U.S. Department of Labor to have misclassified the bulk of their employees to avoid paying overtime wages, workers compensation insurance, payroll taxes, and more. A consent judgment was entered requiring the companies and employers to pay more than $2.6 million in damages and penalties for their fraud.
  9. (California) Company Underreporting Payroll Defrauds Insurer of $2.1 Million (6/7/16)
    Alvin Shih Chen and Fiona Chen of Metro Worldwide, Inc.

    Alvin Shih Chen and Fiona Chen

    Co-owners Alvin Shih Chen and Fiona Chen of Metro Worldwide, Inc., a trucking company, underreported payroll by $4.7 million. The owners paid their truck drivers in cash to avoid reporting them to the insurer and to reduce their payroll obligation. While the company reported nearly $3 million in payroll to California’s State Compensation Insurance Fund, the actual payroll amount was $7.6 million. An estimated $2.1 million in premiums was lost.

  10. (Florida) Construction Company Defrauds Workers’ Compensation Insurer of $1.8 Million by Underreporting Payroll (4/6/16)
    Maira Chirinos, owner of Pompano Beach-based Tocoa Builders Inc.(Broward County Jail)

    Maira Chirinos, owner of Pompano Beach-based Tocoa Builders Inc.(Broward County Jail)

    Maira Chirinos, the owner of construction company Tocoa Builders, Inc. misrepresented information regarding the company’s operations, employees, and payroll when applying for a workers’ compensation policy. The misrepresentations enabled Chirinos to avoid paying at least $1.8 million in workers’ compensation premium payments. An investigation found Chrinos grossly underreported payroll to the insurance company. She reported a payroll of $76,000, but more than $11 million in payroll checks were cashed during the period covered by the policy.

For more information, contact: Leonard T. Jernigan, Jr. Adjunct Professor of Workers’ Compensation Law N.C. Central University School of Law The Jernigan Law Firm 3015 Glenwood Avenue, Suite 300 Raleigh, North Carolina 27612 (919) 833-0299 jes@jernlaw.com www.jernlaw.com Twitter: @jernlaw Blog: www.ncworkcompjournal.com

The offices of Rehm, Bennett & Moore, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

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