1 / 16

Workers’ Compensation Misclassification

Workers’ Compensation Misclassification. Laborers’ International Union of North America Construction Department. Missouri Contractors’ Credit Premium Adjustment Program (Construction only). Illinois Workers’ Compensation Statistics. 7 th highest in wages 23 rd highest in premium rates

presley
Download Presentation

Workers’ Compensation Misclassification

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Workers’ CompensationMisclassification Laborers’ International Union of North America Construction Department

  2. Missouri Contractors’ Credit Premium Adjustment Program (Construction only)

  3. Illinois Workers’ Compensation Statistics • 7th highest in wages • 23rd highest in premium rates • 37th highest in injury rates Source: 2004 Annual Report

  4. The Labor Ready Story • Information was obtained from the monopolistic States of • Ohio • West Virginia • Washington

  5. Ohio • Labor Ready construction workforce misclassified as: • Retail store employees: 10.2% • Clerical office employees: 8.8%

  6. Washington • Labor Ready construction workforce misclassified as: • Office services employees: 47%

  7. West Virginia • Labor Ready construction workforce misclassified as: • Miscellaneous repair and maintenance (includes piano tuning, taxidermists, chain saw repair, lawn mower repair, firearm repair)

  8. West Virginia Piano Tuners or Construction Workers • Larry Richards dispatched by Labor Ready to 126 construction/landscaping projects • 99 times classified as a taxidermist/ piano tuner at $1.11 per $100 of payroll • Construction trades workers’ compensation rate is minimum $10 per $100 of payroll. Source: The Sunday Gazette-mail, Charleston, WV

  9. Economic Impact of Misclassification in Ohio

  10. Economic Impact of Misclassification in Washington

  11. Economic Impact of Misclassification in West Virginia *includes piano tuning, taxidermists, chain saw repair, lawn mower repair, firearm repair

  12. Misclassification Example • The Tenth Diamond Inc. and Astech Corp. are both owned by the same owner in Charleston, WV • Tenth Diamond, Inc. is classified as General Construction contractor paying $9 per $100 of payroll • Astech Corp. is classified as Asbestos Removal contractor paying $48 per 100 of payroll, but has no employees • Astech leased all employees from Tenth Diamond, Inc. • The State of WV claims that Astech/Tenth Diamond owes the state $800,000 in workers’ compensation premiums.

  13. NCCI Manual Premium Rates

  14. NCCI Manual Premium RatesEffects of Misclassification

  15. Conclusion • Workers’ Compensation Misclassification costs legitimate contractors, jobs. • States and insurance companies need more enforcement and penalties.

  16. Workers’ CompensationMisclassification Laborers’ International Union of North America Construction Department

More Related