Feds focused on resolving issues with CARES Act
- The U.S. Department of Labor is offering states funding to upgrade systems or hire staff to catch cases of fraud related to the pandemic-era federal unemployment programs.
- The agency is providing the resources to help states “resolve outstanding items” from the expired Coronavirus Aid, Relief, and Economic Security (CARES) Act unemployment compensation programs.
- There is up to $225 million for administrative costs related to reporting, overpayment detection, and recovery activities under certain CARES Act unemployment compensation programs.
- The federal government provided an estimated $260 billion for enhanced and expanded benefits under three new pandemic unemployment insurance benefit programs as part of the CARES Act.
San Jose mayoral candidate faces labor allegations
- San Jose Councilmember Matt Mahan’s mayoral campaign could be in jeopardy when another complaint was filed with the state labor commissioner just days after he was at the center of a probe of potential labor law violations.
- Mahan, a freshman council member, is being accused of misclassifying campaign workers as independent contractors.
- An investigation revealed that Mahan’s campaign this year classified 18 campaign workers as consultants working as volunteer coordinators, field directors, communication directors, etc.
- That appears to violate a state law meant to quash efforts to not pay benefits by requiring companies to classify workers as employees instead of independent contractors.
Labor Dept. sues former CEO of hospital
- The U.S. Department of Labor has taken legal action after an investigation by its Employee Benefits Security Administration found Charles Hatfield, the former CEO of Williamson Memorial Hospital LLC in West Virginia.
- The CEO was a fiduciary of the company’s healthcare plan and failed to forward contributions to the plan.
- This led to the plan’s cancellation and left participating employees with a significant number of unpaid claims – and without health coverage.
- The department’s suit seeks to restore all losses incurred by former employees of Williamson Memorial as a result of fiduciary breaches by Hatfield after the 76-bed center filed a bankruptcy petition on Oct. 21, 2019.
Foundry faces more than $300,000 in fines
- An OSHA investigation found that a Middletown, N.J., foundry willfully exposed workers to numerous safety and health hazards, citing the company for 14 violations with proposed penalties of $303,106.
- OSHA opened an inspection at the Engineered Precision Casting Co., a steel and aluminum foundry, in response to a complaint.
- Inspectors determined the company did not provide employees with the required personal protective equipment and failed to provide hazard communication training on the chemicals in use and on energy control procedures.
- The agency also found the company had not established an inspection program for overhead cranes or implemented a written respiratory protection program.