http://workerscompzone.com/rss.php?PHPSESSID=44dbc6bae689c0cf532ce03cc58fb77c
pop up description layer1 in 7
America Devolving.....
According to the Census Bureau, 44 million Americans are below the poverty line ($22,000 for a family of four).
That's one in seven Americans.
Undoubtedly some are the walking wounded of America's workers' comp systems. Folks affected by their physical or mental injuries, unable to get a foothold.
The folks texting and sexting won't remember the War on Poverty, or Michael Harrington's book, The Other America. Perhaps that's just as well.
Those date back to the era when the nation has a fresh-faced optimism.
We could put a man on the moon and we could end poverty in our lifetime.
Now we worry about whether the downturn is structural rather than cyclical. Economists note a mismatch between worker skills and the skills needed to compete in a global economy.
We're realizing that poor results in education may be coming not just from poor teachers but rather from poor parenting. Even great teachers may have a heard time motivating kids who disrespect authority and who are more focused on their hookups.
And we don't have a national consensus about whether to look the other way as low-skilled immigrants come in, or whether we need to encourage immigration of the highly-skilled, or whether we should have a moratorium on immigration altogether.
Nor do we have a national consensus anymore on what programs benefitting the poor should be supported by the middle class.
Last weekend I attended a birthday party not far from the residence of Meg Whitman. The party, for a kindergartner, featured a DJ (playing Puff the Magic Dragon, Purple People Eater, and all the Disney tunes one could handle), a mobile inflatable jumper, and a live python, tarantula and giant lizard show. Oh, and time in the backyard swim pool.
The guests (and hosts) were creative folks, masters of the new economy. Folks that could ship jobs overseas to Singapore, China, and Hong Kong if they so chose. Folks doing the R&D for new technology companies forming the backbone of potential growth in our stalled economy.
We live in a world that rewards some of us mightily.
I actually don't begrudge that. Many of these folks have started the company, worked the long hours, taken the risk. Well, you know the drill.
I'm a big fan of the Sand Hill Road venture capital folks. They've changed our lives in so many ways.
But the question is how to strike the right balance. At what point are our private walled off worlds greatly diminished by the suffering and angst of those who have no jobs and no money? When does the communitarian interest become in my self-interest?
In a toxic political environment that looks askew at any new "entitlements", what's a credible path forward?
These are questions we need to be asking.
Julius Young
www.boxerlaw.com
SCIF CONTINUES TO SHRINK BUT CLAIMS PROFITABILITY
SCIF's report on 2009 results is now available:
http://www.statefundca.com/AnnualReport ... index.html
It's no surprise that SCIF continues to shrink. Premium volume is down by 25%.
SCIF, California's quasi-public, quasi-private carrier, has steadily lost market share. And of course the effects of the poor economy are a factor.
But SCIF claims that net income increased from $75 million in 2008 to $143 million in 2004.
Investment income rose, along with policyholders surplus.
So if we put these results together with the request by the governing board of WCIRB to recommend a 30% comp rate increase, is there a disconnect?
It seems that the industry is still profitable, even in the instance of a carrier that has a somewhat bloated structure, formed to serve when SCIF had a much larger market share.
Before acting on the rate increase request, Commmish Poizner should look carefully at what these results say about the profitability of the industry now.
Stay tuned.
Julius Young
www.boxerlaw.com
MAYBE UNIONS AREN'T SO BAD AFTER ALL
Its been a difficult decade for unions.
Membership has been slipping. Union shoe leather helped staff "Obama's Army".
But efforts to enact union-friendly labor law amendments have gone nowhere. Amid the stimulus, the endless healthcare reform debate, the stall of the economy and the rise of the tea party, labor law reform never got off the ground.
Scott Brown was elected in the bluest of states, and the assumptions of many a Berkeley liberal went haywire.
Lately we see even more union-bashing in the form of concern over public pension packages.
But it's interesting to note what happens when there's a major disaster, like the disaster in San Bruno caused by an an exploding natural gas pipeline.
Union firefighters are called to put out the fire. Union nurses tend to the sick in hospital burn wards. Union police seal off the perimeter.
Federal government employees are called in to launch an investigation of what occurred.
Union employees will be doing trenching and excavating. Union employees will be laying pipe.
We all might just want to think of those facts when we consider the value of unions in our society. Who's to say those workers don't deserve a good wage.
My law partner John Anton, a trial lawyer at Boxer and Gerson, handled wrongful death cases several years ago arising out of the explosion of a jet fuel pipeline in Walnut Creek.
These pipeline explosion cases are tragic, as life is extinguished so randomly.
Out hearts go out to all of those affected.
Let's hope that Pacific Gas and Electric is forthcoming in its dealings with the victims, the public, the PUC, and federal authorities.
The San Franciso Chronicle website today posted copy of a work order showing that PG&E saw the need to replace pipe not far from the explosion site, but had deferred the replacement. Although this document may have referred to a location several miles away, it raises substantial questions about the company's oversight and infrastructure maintenance planning.
PG&E's President, Peter Darbee has made a big thing about "leadership".
Darbee served as chair of the board of trustees of my son's school several years ago. I recall a windy address by Darbee about leadership to a restless graduation crowd.
Darbee will have have a chance to show leadership now.
Julius Young
www.boxerlaw.com
MEDICAL COSTS NOW EXCEED INDEMNITY BENEFITS
For the first time nationally, the cost of medical treatment for injured workers exceeds cash indemnity benefits paid to workers.
This milestone was documented by the folks at NASI, the National Academy of Social Insurance.
A summary of the NASI study can be found here:
http://www.nasi.org/sites/default/files ... nefits.pdf
The actual NASI study, "Workers' Compensation: Benefits, Coverage and Costs, 2008" can be found here:
http://www.nasi.org/sites/default/files ... t_2008.pdf
BUYING INSURANCE?
Politics is a rough sport, and money is the lifeblood of politics.
No one understands that more than the folks at the Chamber of Commerce. For those readers not following California politics, the Cal Chamber has been a big player in Sacramento. With its "job killer bill" strategy, the Cal Chamber and its allies have had a laser focus on workers' comp along with anything other issues perceived as critical to business interests.
So it's no surprising to see that the Chamber of Commerce is opening its deep pockets to support candidates that it believes will support its anti-regulatory agenda:
-the Cal Chamber has dumped almost $2 million into ads against Democratic candidate for Insurance Commissioner, Dave Jones. The Cal Chamber supports Assemblyman Mike Villines of Fresno. The Insurance Commissioner post has oversight functions over the California workers' comp industry and the next insurance commissioner post could have an important role to play in future debates over the future of workers' comp in California.
-the Cal Chamber ran a TV campaign against Jerry Brown costing more than $1 million, eliciting a complaint to the FPPC due to the links between Whitman campaign official Pete Wilson and the the Cal Chamber:
http://www.kintera.org/site/apps/nlnet/ ... ct=8158729
-on a national level, the U.S. Chamber of Commerce has launched a multimillion dollar ad effort against Senator Barbara Boxer.
Given the state of the economy and concern about the direction of the country, there's a lot of political fatigue out there.
The Cal Chamber is obviously energized.
Are you?
Julius Young
www.boxerlaw.com
.
THE SUPREMES TAKE ON FURLOUGHS
Yesterday the California Supreme Court heard oral arguments on the legality of furloughs.
According to reports from observers who were there, it seems likely that the court will rule that the furloughs are legal.
The debate centered on issues as to whether the governor has implied furlough power and whether legislative budget actions bestowed the furlough powers.
Here's a link to a piece in the San Francisco Chronicle by Bob Egelko that recounts key portions of the oral argument:
http://www.sfgate.com/cgi-bin/article.c ... ss.bayarea
And here's a link to a piece in the Sacramento Bee by Jon Ortiz, who also covered the oral arguments:
http://www.sacbee.com/2010/09/09/301532 ... 20Politics
Governor Schwarzenegger has repeatedly refused to exempt user-funded agencies such as the WCAB from the furloughs.
Whether our next Governor will continue furloughs and, if so, exempt user-funded agencies is an unknown.
Stay tuned.
Julius Young
www.boxerlaw.com
EAMS FOR ALL
Workers' Compensation Appeals Board court administrator Keven Star apparently has plans to require all attorneys become e-filers.
That's the word in a piece written by Greg Griggs, an editor at Workcompcentral.com.
Griggs quotes Star from a visit Star made to the Oxnard WCAB.
Currently there are under 500 e-filers. Most attorneys still participate in the computerized WCAB system, EAMS, by filing optical character recognition documents which must then be scanned by WCAB staff.
Any mandated transition would be a ways off, however. Regulations must be drafted. There would be a comment period, and possible re-drafting.
And all of this will be in the hands of a new administration. While it's possible that there will be some hold-overs, it's safe to guess that there will be a new court administrator and new faces at the DWC, whether Brown or Whitman prevail.
Like many in the comp community, I've always thought that EAMS had many problems. The rollout of EAMS was rocky. Some of the EAMS spokespeople were arrogant and in truth stirred up resistance to the project by refusal to acknowledge concerns of the community.
Some problems persist. Forms are still too way long. Sorting through documents and handling online documents and exhibits at a trial is cumbersome. Bulk lien filing has been an issue.
But Boxer & Gerson has participated as e-filers. There are advantages, including being able to check liens easily, being able to select court appearance dates, being able to set up walk-thrus quickly, and being able to get application numbers quickly.
Firms that specialize in comp who aren't e-filers may end up finding it to their liking, somewhat to their surprise.
But care needs to be taken with the transition. Some small firms are not tech savvy at all, and the process will be hard for those dabbling in comp.
Stay tuned.
Julius Young
www.boxerlaw.com
DOES CHINA OFFER STATE A MODEL FOR JOBS?
Does China offer California a model for jobs?
That's the title to a piece by Dan Morain in the Sacramento Bee. Morain reflects on an interchange between Senator Barbara Boxer and challenger Carly Fiorina in last week's Moraga senatorial debate.
In a world where, as Fiorina noted, jobs can be moved anywhere, should Americans just suck it up and adopt labor standards closer to Chinese standards?
If American workers live under the fear of outsourcing or corporate "rightsizing" by CEOs making huge pay packages, should American workers just get over it? Is the problem with our system, or theirs?
Granted, the Chinese are very industrious and hard working. China's educational system has made great strides along with its infrastructure system. Centralized decisionmaking facilitates decisive planning for transit and development projects.
But is the problem really with American laws giving too many rights to workers, and with government demanding too much from industry?
Fiorina seems to favor larding businesses with tax relief packages. It's not clear whether she would favor rolling back OSHA safety regulations, wage and hour regulations, most environmental protections, or other worker rights laws.
Is this really the problem?
Should American politicians be delivering a harsh message to American workers this Labor Day? A message that you're not so special, so suck it up, expect less, get real.....The world is gaining on you.
Morain's piece can be found here:
http://www.sacbee.com/2010/09/05/300470 ... ia%20Forum
Julius Young
www.boxerlaw.com
SB 1254
Among the workers' comp measures headed to Governor Schwarzenegger's desk is SB 1254.
Sponsored by Mark Leno of San Francisco, SB 1254 is a bill worthy of the Governor's signature.
Anyone paying the least attention to workers' compensation over the last few years has to have noted the recurring problem of uninsured employers. Failure to secure worker's comp coverage has been endemic in certain industries such as car washes and restaurants.
The construction industry is another area where there are major problems with uninsured employers or misclassified employees. Many of these employers are also unlicensed. And such employers frequently violate other labor standards laws.
A study prepared by Frank Neuhauser and Colleen Donovan at UC Berkeley for the California Commission on Health Safety and Workers' Compensation has noted that employer fraud imposes huge costs on the system and honest employers:
http://www.workerscompzone.com/pdfs/stupid.pdf
Here's a link to a piece I did several years ago on employer fraud:
http://www.workerscompzone.com/index.ph ... 818-110358
SB 1254 would put more teeth in anti-fraud efforts. It would provide that a stop-work order be issued to unlicensed contractors who have failed to secure comp coverage. Increased inspectors would be used to do Contractors State License Board investigations. It's a step in the right direction.
Here's a link to the text of SB 1254:
http://www.leginfo.ca.gov/pub/09-10/bil ... rolled.pdf
The measure passed in the California Senate with no opposition. Only one vote against the bill was noted in the California Assembly, Assemblyman Diane Harkey of Dana Point, a proponent of "rightsizing the government".
It's likely that the Governor will sign the bill.
Here's the official analysis:
http://www.leginfo.ca.gov/pub/09-10/bil ... _floor.htm
Stay tuned.
Julius Young
www.boxerlaw.com
PROTECT CALIFORNIA JOBS
When California needs all the income tax revenues it can get, you'd think that the Governor would fight to keep every job here in California.
Sounds logical.
But that may not be the case.
Last year Governor Schwarzenegger vetoed legislation to require that UR reviews be done by California-licensed physicians.
This seems like a no-brainer bill. After all, why should California export good-paying jobs to other states?
What's the benefit to California in having Texas or Florida doctors doing
utilization reviews? Whatta they got that we don't got?
Does the Governor really think that California doctors will be too generous with approvals of treatments requested by their brethren? If that's the argument. where's the evidence for that?
The Governor will get a second chance on this issue. A bill to require in-state reviews is headed to the Governor's desk. It's AB 933, carried by Assemblyman Paul Fong of Cupertino.
If my iPad and iPhone can be designed in Fong's district, right here in Cali, then surely we can give the business to UR reviewers right down the road.
Let's hope the Guv gets a change of heart on this one.
Here's the link to the text of AB 933:
http://www.leginfo.ca.gov/pub/09-10/bil ... en_v96.pdf
Here's the tally of the Assembly vote on the bill:
http://www.leginfo.ca.gov/pub/09-10/bil ... floor.html
And here's the California Senate vote tally:
http://www.leginfo.ca.gov/pub/09-10/bil ... floor.html
Stay tuned.
Julius Young
www.boxerlaw.com
Copyright 2010, julius@workerscompzone.com
© 2004-2010 LeighRSS.com Privacy Policy | Terms of Use | FAQ | Advertising | Contact Us View the Original article
Free Directory of RSS Feeds. Free RSS Tools. Free RSS Tools RSS Creator RSS Editor RSS Converter RSS Validator RSS Viewer My RSS Feeds Directory Categories Art Autos Business Classified Computer Education Entertainment Family Foreclosure Games Health Insurance Internet Investing Jobs News Personals Politics Publishing Real Estate Religion Retirement Science Security Shopping Sport Travel 
--> 
