Category Archives: Nebraska

Examining Workers’ Compensation Costs to Employers

Source: Bureau of Labor Statistics National Compensation Survey 1991 – 2014 (Credit: Sisi Wei/ProPublica)

Today’s post comes from guest author Rod Rehm, from Rehm, Bennett & Moore.

Business and insurance interests are bombarding state legislatures every day of the week to take workers’ rights away by complaining how most states’ workers’ compensation systems are too expensive.

Recently, ProPublica and NPR produced a very detailed explanation of the state of workers’ compensation, focusing, rightly so, on injured workers. This article, which was the first in the series, included an interactive graphic that showed that even though business are complaining about rising premius, workers’ compensation insurance coverage is generally at its lowest rate in 25 years, “even as the costs of health care have increased dramatically,” according to the article.

As examples, using the average premium cost to the employer per $100 of workers’ wages, Nebraska employers paid $1.93 in 1988, while they actually paid $.15 less for the premium in 2014, for a total of $1.78 per $100 of workers’ wages, according to the chart. Iowa was more dramatic, with the price of workers’ compensation insurance $2.79 per $100 of workers’ wages in 1988. It went down $.91 to $1.88 per $100 of workers’ wages in 2014.

By scrolling down in the article, a person finds another graphic that shows how employer costs have risen for other categories, but have fallen for workers’ compensation. Most notably, the cost of workers’ compensation insurance coverage (per $100 of workers’ wages) went from $2.71 in 1991 to $2.00 in 2014. During the same timeframe, the cost of health insurance went from $8.55 to $12.52 and the cost of retirement benefits went from $5.50 to $7.29, all per $100 of workers’ wages, according to the chart in the article.

The offices of Rehm, Bennett & Moore and Trucker Lawyers are located in Lincoln and Omaha, Nebraska. Six attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 90 years of practice representing injured workers and truck drivers in Nebraska and Iowa in state-specific workers’ compensation systems. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers’ Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), and the Nebraska Association of Trial Attorneys (NATA).  We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

After the International Nutrition Building Collapse: OSHA Releases Report

The International Nutrition building.

Today’s post comes from guest author Rod Rehm, from Rehm, Bennett & Moore.

I was going to write about a summary from the official OSHA news release and provide a compilation of web resources regarding the Jan. 20 International Nutrition building collapse in Omaha. This is relevant now because the Occupational Safety and Health Administration (OSHA) quite recently found the cause of the collapse after an investigation and levied proposed fines for the tragedy that killed two, injured nine, and doubtlessly affected all the other workers at the plant and all those folks’ loved ones in the greater community.

“OSHA has proposed penalties of $120,560 and placed the company in its Severe Violator Enforcement Program after its investigation into the collapse,” according to the official news release from OSHA.

The building’s collapse was because of “overloading nine storage bins on the building’s roof level,” the news release said, and the company was also placed on OSHA’s Severe Violator Enforcement Program.

Here is one link that was more of what I was expecting from the OSHA news release:

Business Insurance website: OSHA cites Omaha feed company for fatal plant collapse 

However, the business did respond via statement to at least three local media channels, and links to those stories are below. The level of denial by the business was frustrating, and I think the Omaha World-Herald newspaper nailed the tone of the story with its headline: “International Nutrition disputes OSHA’s conclusions that overloaded rooftop bins caused collapse.”

So not only does “the company strongly disagree with OSHA’s report,” it is “saying the citations are only allegations and that company officials didn’t know of any condition that contributed to the collapse,” said the reporter for KETVOmaha7 (this quote is attributed to International Nutrition’s attorney, Pat Barrett in the World-Herald article).

The business’ statement also included this quote from the WOWT.com story: “We look forward to presenting the facts demonstrating our commitment to employee safety – both before and after the accident. … At the same time, we welcome the opportunity to work with OSHA to continue to improve employee safety.”

I thought this was telling about the company’s “commitment to employee safety” from the WOWT.com article:

“In total, OSHA has visited the facility 13 times dating back to 1974. Eight of those visits led to violations; however, it had not landed on the Severe VEP program until now. OSHA officials told WOWT 6 News that usually occurs when companies rack up violations of $100,000 or more.”

To get more in-depth information, here are links to both the company’s statement at http://www.omaha.com/international-nutrition-s-july-statement/article_0997a878-10fc-11e4-8481-0017a43b2370.html and OSHA’s Citation and Notification of Penalty report at https://www.osha.gov/ooc/citations/International_Nutrition_955579_Jul18_2014.pdf  

Finally, here’s a link to the actual news release again from OSHA: January structural collapse leading to 2 worker fatalities, 9 injuries at International Nutrition in Omaha caused by overloaded storage bins; OSHA cites company for 13 safety and health violations

“The company manufactures a feed supplement using multiple dry ingredients, rice hulls, solulac and limestone – the ingredients that were stored in the nine bins on the roof of the structure,” according to the KETVOmaha7 report.

The reality when it comes to workers’ compensation and lawsuits is nuanced, but the incident is stark in its details, and this information is from multiple news sources.

In 30 seconds, “close to 1 million pounds of steel, concrete, equipment and ingredients crashing through the plant” occurred, according to the World-Herald.

That 30 seconds and its aftermath is an experience that will take months and years for many to recover from. It is an experience that no worker or their loved ones should have to endure.

Elections Matter to Injured Workers

Today’s post comes from guest author Rod Rehm, from Rehm, Bennett & Moore.

Nebraska held a primary election last week. Our television, radio and social media networks were flooded with messages from big-business organizations with little or no connection to our state. Millions of dollars poured in from nameless, faceless donors from other states.

Injured workers, their families and people who care about injured workers should be concerned about this.

Big-business groups generally do not support candidates and laws that are good for injured workers. These groups push for limitations in benefits, limitations on health care, and judges with business-favorable histories.

The general election this fall will be important because many state senators who have been great friends and protectors of injured workers are going to be replaced by new senators. Workers need to pay attention to the candidates and learn whether the candidates stand for the working people or the big businesses. 

Vote for the candidates who care more about injured people than business profits.

What’s the Connection Between Worker Safety, Employer Profit, and Voting?

Today’s post comes from guest author Rod Rehm, from Rehm, Bennett & Moore.

A recent newspaper article about a Nebraska lawyer fighting against imposing OSHA regulations on small businesses and farms that handle grain illustrates an age-old conflict between Worker (human) safety and Business (corporate) profit. The lawyer argued OSHA compliance is too expensive for small businesses and farms.

I couldn’t disagree more. From my point of view, worker safety is immeasurably more valuable to society than business profit. Human beings are the most important component of any activity, including business. Viewing safety as a cost ignores the cost to the human beings who are burned and maimed by grain explosions, whether they happen at a small business/farm or a huge corporate grain facility.

Farms in Nebraska and Iowa are not required to provide workers’ compensation for their employees. This is justified on the grounds that farms can’t survive such government intervention. I find this an interesting argument from businesses that have long received subsidies from the government. It seems that farm profits are more important than the human beings who do the work to earn those profits.

Our society needs more laws to protect human beings from injury and to compensate them if injured for the profit of others. Candidates for public office need to be asked what matters more to them: Is it human beings or profits that matter more?

Justice Louis Brandeis of the U.S. Supreme Court wrote long ago: “We must make our choice. We may have democracy, or we may have wealth concentrated in the hands of a few, but we can’t have both.”  

If we keep electing representatives who favor the concentrated wealth, then human beings will likely be protected less. These are scary times as the divide between the “haves” and “have nots” continues to grow. Ballots are the only way to tell our representatives that the health and welfare of human beings is paramount. Voting is essential, or we will see more and more concern for profit and less and less concern for human beings.

What is Workers’ Compensation Law in Nebraska?

Today’s post comes from guest author Brianne Rohner, from Rehm, Bennett & Moore.

Before workers’ compensation was an option in Nebraska, injured workers could only sue their employers under tort law for damages. While providing complete compensation – i.e., damages such as those for pain and suffering were available – it also required proof of negligence, and claims were often barred by affirmative defenses such as assumption of the risk and contributory negligence. For more than 100 years now, injured workers have had the protection of workers’ compensation laws that provide for no-fault benefits that are received quickly, and employers can avoid more expensive court challenges.

The Nebraska workers’ compensation system includes a dedicated court, and Nebraska is one of the only states to have this avenue for injured workers.

There are several different types of benefits that an injured worker is entitled to:

1.      Benefits to manage or cure the injury: includes hospital, doctor, chiropractic and physical therapy costs. This also includes the costs of diagnostic testing, doctor-prescribed medicine (even if it’s over-the-counter) and items like braces.

2.      Compensation while temporarily disabled: These payments of two-thirds of an injured worker’s average weekly wage may start after an injured worker has been off work for seven days, and usually an injured worker continues to collect payments – either for total or partial disability – while he or she is convalescing until a doctor signs off on a full return to work and/or places an injured worker at maximum medical improvement.

3.      Compensation for permanent injuries: These benefits are two-thirds of an injured workers’ average weekly wage (or wages earned in a 40-hour work week for part-time workers) and are available after an injured worker has reached maximum medical improvement. These benefits may be for permanent impairment to a specific body part or may be to compensate for an injured worker’s loss of earning ability. This distinction depends on the type of injury. Benefits may also be partial or total, depending on the type and degree of injury.

4.      Vocational rehabilitation: These are services provided under Nebraska workers’ compensation law to injured workers when, as a result of a compensable injury, the injured worker is unable to perform suitable work for which he or she has previous training or experience. This may include job placement and retraining. 

5.      Death benefits: If a worker dies as a result of his or her injury, that worker is entitled to medical expenses as well as burial expenses up to $10,000.  The deceased worker’s dependents are also entitled to benefits, which vary depending on the circumstances.

If the system worked the way it was supposed to, employers (or their insurance companies) would pay injured workers, pay the medical bills, and focus on getting the worker either back to work or moving on with the best quality of life possible. The reality is that employers (and their insurance companies) don’t always see eye-to-eye with doctors’ opinions or treatment recommendations, or follow work restrictions. Speaking with an experienced attorney when navigating the workers’ compensation system can reassureinjured workers and their loved ones and make a very stressful time a little less difficult.

Different states have workers’ compensation systems that vary, but all, to some extent, are intended to protect injured workers. If there are questions, please contact the firm and provide the details to an attorney who can advise on the best steps to take for each specific situation.