If S&H and Premire were insured by a PEO, non of this would have happened. There is rampant misclassification and under reporting of payroll within the PEO work comp delivery system as well. The only difference is, it seems to be condoned by the PEO’s, and may aid them in being more competitive than the standard work comp market.
Do PEO’s audit their client companies annually? EVER?
Good for you FCCI! This article should be sent to every business operating in Florida.
Don’t forget to include LICENSED, ethical,
insurance professionals at the point of sale (front end underwriting) and regular guidance throughout the policy period.
I’m just a little biassed in favor of licensed insurance professionals selling work comp and their addition to the overall “proper” underwriting process.
Bruce IF the legislature would eliminate the exemption certificate they would also eliminate a huge amount of fraud. Chances are work was subbed out to someone with an exemption certificate who brought in a lot of helpers. If the helper was injured FCCI would have had to have paid the claim and subsequently claim enitlement to the premium. The 10 times penalty statue is a little strong in that FCCI is probably going to kill the cow before it is able to give back any milk. The exemption certificate encourages fraud. Very few companies can afford to pay a 16 million dollar fine.
If this contractor was written through a PEO their never would have been a 16 million dollar law suite. If an employer does not put all his employees on the PEO payroll there is no coverage for the injured “employee” – period. The contractor puts himself at risk not the PEO or insurance company. I know of no PEO that encourage underreporting of payroll. The writter seems to want to bring in the PEO’s when obviously one was not involved or the company would never have brought suite.
I stand corrected “Concerned Agent”. If the scofflaw contractor would have obtained work comp via a PEO, the PEO could have washed its hands from claim payment for non leased employees.
HOWEVER, wouldn’t it be fair to give FCCI and any STANDARD CARRIER the same LOOP HOLE. It is an EXTREMELY UNFAIR TRADE ADVANTAGE for a PEO to circumvent claim payments that are IMPOSED upon the standard market. PEO’s should be required to pay claims of unreported client company employees, then… of course, be entitled to collect required premium. JUST LIKE THE REAL WORK COMP CARRIERS MUST DO.
This unfair loophole must be closed to level the work comp playing field in Florida and to protect the unsuspecting, honest EMPLOYEE.
Don’t get me started on PEO’s. In my opinion they have and continue to undermine the “real” work comp market in Florida due to their ability to circumvent certain impositions and regulations incumbent upon the standard market.
I know all of them involved when I was growing up in “Inbred”ness. They all deserve what has come to them! They are all foney’s and fakes and claim to be of the righteous. It’s only just begun! I would be interested in seeing how many off-shore accounts they have! A wise man once told me, that they will all get theirs one day… God keeps putting a smile on my face!
To Small Potatoes: I feel compelled to write regarding PEO\’s. You state \”if they were with a PEO none of this would have happened. What if a PEO just flat out refuses comply with WCB in another state? What to do with them then? That is our situation right now. 6/23/05 – LAST CHECK RECEIVED from a PEO IN FLORIDA – WE LIVE IN PENNSYLVANIA – PEO\’S SUCK!.
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If S&H and Premire were insured by a PEO, non of this would have happened. There is rampant misclassification and under reporting of payroll within the PEO work comp delivery system as well. The only difference is, it seems to be condoned by the PEO’s, and may aid them in being more competitive than the standard work comp market.
Do PEO’s audit their client companies annually? EVER?
Good for you FCCI! This article should be sent to every business operating in Florida.
The answer is going back to field audits and field claims adjusting.
Don’t forget to include LICENSED, ethical,
insurance professionals at the point of sale (front end underwriting) and regular guidance throughout the policy period.
I’m just a little biassed in favor of licensed insurance professionals selling work comp and their addition to the overall “proper” underwriting process.
Bruce IF the legislature would eliminate the exemption certificate they would also eliminate a huge amount of fraud. Chances are work was subbed out to someone with an exemption certificate who brought in a lot of helpers. If the helper was injured FCCI would have had to have paid the claim and subsequently claim enitlement to the premium. The 10 times penalty statue is a little strong in that FCCI is probably going to kill the cow before it is able to give back any milk. The exemption certificate encourages fraud. Very few companies can afford to pay a 16 million dollar fine.
If this contractor was written through a PEO their never would have been a 16 million dollar law suite. If an employer does not put all his employees on the PEO payroll there is no coverage for the injured “employee” – period. The contractor puts himself at risk not the PEO or insurance company. I know of no PEO that encourage underreporting of payroll. The writter seems to want to bring in the PEO’s when obviously one was not involved or the company would never have brought suite.
I stand corrected “Concerned Agent”. If the scofflaw contractor would have obtained work comp via a PEO, the PEO could have washed its hands from claim payment for non leased employees.
HOWEVER, wouldn’t it be fair to give FCCI and any STANDARD CARRIER the same LOOP HOLE. It is an EXTREMELY UNFAIR TRADE ADVANTAGE for a PEO to circumvent claim payments that are IMPOSED upon the standard market. PEO’s should be required to pay claims of unreported client company employees, then… of course, be entitled to collect required premium. JUST LIKE THE REAL WORK COMP CARRIERS MUST DO.
This unfair loophole must be closed to level the work comp playing field in Florida and to protect the unsuspecting, honest EMPLOYEE.
Don’t get me started on PEO’s. In my opinion they have and continue to undermine the “real” work comp market in Florida due to their ability to circumvent certain impositions and regulations incumbent upon the standard market.
I know all of them involved when I was growing up in “Inbred”ness. They all deserve what has come to them! They are all foney’s and fakes and claim to be of the righteous. It’s only just begun! I would be interested in seeing how many off-shore accounts they have! A wise man once told me, that they will all get theirs one day… God keeps putting a smile on my face!
To ALL involved (Pharisees):
You see youself as a christian
I see yourself as a hypocrite
You always thought you were a righteous zealot
I always knew you were a piece of ****!
There is no sweeping this under the carpet, is there. I think jail time would be appropiate.
To Small Potatoes: I feel compelled to write regarding PEO\’s. You state \”if they were with a PEO none of this would have happened. What if a PEO just flat out refuses comply with WCB in another state? What to do with them then? That is our situation right now. 6/23/05 – LAST CHECK RECEIVED from a PEO IN FLORIDA – WE LIVE IN PENNSYLVANIA – PEO\’S SUCK!.