The owner of a Missoula, Montana, roofing business faced a large fine and a felony charge for employer misconduct for trying to sweep the truth past the Montana State Fund to keep from paying higher workers’ comp premiums.
Despite having more than 300 roofing permits and purchasing more than $1 million in roofing supplies, the roofer classified many of his company employees as only doing site “clean ups,” which carries a workers’ comp premium five times lower than for workers doing actual roofing work.
Get the complete guide to workers’ comp in California—now fully updated for 2014! Learn more.
Unfortunately, some of these employees began filing claims for workplace injuries that were clearly related to roofing activities, sending up a red flag to the Montana Department of Justice (DOJ)—and sending its criminal investigators to the company’s worksites.
The roofer was charged with felony employer misconduct, which has a maximum penalty of 10 years in prison. In a plea deal described in a Department of Justice press release, the roofer paid $200,000 in restitution to the state, and a judge put him on probation and conditionally deferred his sentencing for 2 years.
Workers’ Comp: Tricky Even When You’re Honest
Dealing with workers’ comp questions can be stressful and time-consuming for HR, to put it mildly.
What can make it easier? Our exclusive HR Management & Compliance Report Workers’ Compensation in California: A Complete Guide for California Employers.
Workers’ comp is one of the few areas of employment law that’s almost entirely governed at the state level. And it’s complicated, to say the least:
- What qualifies as a covered injury or illness?
- Should you self-insure?
- Who’s entitled to workers’ comp benefits?
- What do you need to know about the State Compensation Insurance Fund (SCIF)?
- How are premiums calculated—and how can you keep yours as low as possible?
- What should be included in your Injury & Illness Prevention Program (IIPP)?
- Which workers’ comp notices must you distribute to employees—and when?
- How do you properly calculate benefits for injured employees?
- What should your return-to-work program look like?
- How does workers’ comp interact with other state and federal leave laws, including FMLA/CFRA and ADA/FEHA?
- What can you do to reduce the risk of workers’ comp disputes—and fraud?
- How should you respond to a workers’ comp-related lawsuit?
Fortunately, answers to all of these questions and more are covered in depth in our comprehensive, 138-page HR Management & Compliance Report Workers’ Compensation in California: A Complete Guide for California Employers.
This exclusive report includes everything you need to know for successful management of your company’s workers’ comp program and has been fully updated for 2014. Order your copy today—your satisfaction is 100 percent guaranteed.
Download your copy of Training Your New Supervisors: 11 Practical Lessons today!
Can’t help wondering how much appropriate W/C coverage would have cost. No doubt significantly less than $200,000.