Tag Archives: Employee Risks

by | December 18, 2012 · 7:40 am

Hospitality Industry Insurance Risks: Workers' Comp Insurance Fraud Costs Businesses $7.2 Billion Annually

In 2007 State Fund discovered Safehome Inc. was under reporting their employee payroll to avoid paying the proper premium. An audit was completed and indicated that Safehome Inc. had failed to pay the proper workers compensation insurancepremiums for their workers’ compensation policy in the amount of $477,285. Additionally, State Fund determined the business was operating out of its classification, and related payroll was never reported to either State Fund or EDD, according to investigators.

“…the three types of most common workers’ comp fraud – injured worker fraud, provider fraud and premium fraud – haven’t changed much…”

Workers’ compensation fraud costs businesses $7.2 billion annually, roughly a fifth of all workers’ compensation payments, according to the National Insurance Crime Bureau.

In the past, it’s been challenging to prosecute workers’ compensation fraud, but recently passed legislation is making it easier for agencies like State Fund to work together to fight fraud. In June, as a result of a joint task force that included State Fund, more than 100 enforcement actions were taken against companies for failure to comply with state contracting, insurance and payroll requirements.

And earlier this year, State Fund partnered with other agencies on a fraud case that resulted in a conviction with restitution orders to both State Fund and the Employment Development Department.

For more:  http://www.insurancejournal.com/news/west/2012/12/12/273777.htm

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Filed under Health, Injuries, Insurance, Labor Issues, Management And Ownership, Risk Management

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by | March 12, 2012 · 7:32 am

Hospitality Industry Legal Risks: Washington Hotel And Restaurant Sued By Fired Waiter For "Discrimination, Disparate Treatment And Infliction Of Emotional Distress"

“…He contends Matt Stickle, executive chef of the hotel’s Bite restaurant, belittled him in front of customers and co-workers and that the Murano’s managers did nothing to rectify the situation when he complained. Conteh, who immigrated to the United States from Africa, contends he was treated hurtfully and unfairly because he’s black…”

A Pierce County man is suing Tacoma’s Hotel Murano and the executive chef of its high-end restaurant, contending they discriminated against him when he worked there as a waiter. Muhammed Conteh filed his lawsuit last week in Pierce County Superior Court. Conteh seeks unspecified damages for discrimination, disparate treatment and the infliction of emotional distress.

Conteh contends, among other things, that Stickle “continuously harassed plaintiff about his personal smell and would physically smell the plaintiff and embarrass him in front of customers,” according to the suit.

Conteh said he also was punished for using the kitchen telephone and engaging in horseplay with colleagues. White co-workers who engaged in similar behavior were not disciplined, he contends.

Conteh was fired in January after working at the restaurant for eight years. He has been unemployed since, said his lawyer, Thaddeus Martin.

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Filed under Labor Issues, Liability, Management And Ownership, Risk Management

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