Monday, June 25, 2007

New York Imposing New WC Requirement On Out-Of-State Employers

Under new regulations set to take effect on September 9, 2007, out-of-state employers who have workers in New York State will have to make sure they have valid New York coverage, either through a separate policy for New York or by making sure New York is added to their multi-state policy in section 3.a of the policy.

More details can be found at

New York doesn't hesitate to apply significant fines for companies that they feel don't comply with these provisions, so if your company has workers who occasionally work in the state of New York, you will want to make sure you are in compliance with the new regulations.

Friday, June 15, 2007

Class Action Filed Against California WC Fund

The State Compensation Insurance Fund, or SCIF, has been hit with a class action lawsuit against the fund and some of its top executives. SCIF is the California Workers' Compensation Fund, and it competes against private insurance companies to provide Workers Comp coverage to employers in California. SCIF is the largest provider of such coverage in California.

The lawsuit seeks $25 million in compensatory damages and $50 million in punitive damages, and alleges that there were improper payments made by SCIF to some safety groups operated by former board members of SCIF.

The lead plaintiff in the action is Acro Constructers, Inc. of Burbank, and the law firm handling the suit is Pearson, Simon, Soter, Warshaw & Penny, LLP. in Sherman Oaks. It is reported that potentially there could be 250,000 members of the class action among California employers.