Workers’ Comp Board Uses Stop-Work Authority to Order 3 Businesses to Shut Down

Companies in Oswego, Bronx and Albany Cited for Noncompliance

ALBANY, NY (07/17/2007)(readMedia)-- Using new authority granted under Gov. Eliot Spitzer’s sweeping workers’ compensation reform initiative, New York State Workers’ Compensation Board Chair Donna Ferrara today ordered three businesses to close immediately for failing to comply with workers’ compensation laws.

The largest, a trucking company with 20 employees at its Oswego facility, has a history of noncompliance. The other two businesses are located in the Bronx and Albany. This is the first set of closures ordered under the new reform legislation.

“The Stop-Work Orders I issued today reflect the zero-tolerance stance by the governor and the Workers’ Compensation Board,” Ferrara said. “These businesses failed to secure workers’ compensation insurance to cover their employees, and then failed to reimburse New York when ordered to do so. Businesses must purchase insurance to cover workers injured on the job, and these businesses did not.”

When someone is injured on the job and the employer is not insured, all medical bills, including weekly wage payments to the worker, come from a special Uninsured Employers’ Fund, which is funded by employers who have workers’ compensation insurance. In such cases, the Board must seek reimbursement from the employers. Reform legislation signed by Gov. Spitzer in March grants the Board the authority to shut down businesses for failing to obtain workers’ compensation insurance.

Since 2004, Utah-based Metal Transportation Systems, Inc., which has a facility at 1850 County Route 1 in Oswego, submitted five injury claims totaling $78,600, yet the company was not insured. Mark R. Longshore of Salt Lake City is listed as president. In 1990 and 1991, when Mr. Longshore owned Longshore Transportation Systems, Inc., three uninsured injury claims were submitted totaling $556,181. The company still owes $199,620 from those claims. With penalties, Mr. Longshore’s companies owe a combined $311,220.

Board compliance officers also served Stop-Work Orders on Jose Mateo, owner of A&T Auto Repair at 684 E. 137th St. in the Bronx, and Salah N. Kanan, owner of Sabah Food Mart at 280 Central Ave. in Albany.

A Board investigation found:

  • In 2004, an injured A&T worker received $19,411 in workers’ compensation wages and medical benefits. A&T, which was uninsured at the time, has ignored an order to pay $55,352 in total restitution and penalties.
  • In 2003, an employee of Sabah Food Mart was injured and collected $12,264 in medical benefits. Sabah has ignored an order to repay $46,853 in total restitution and penalties.

The employers can apply to the Board to have the Stop-Work Order lifted once they agree to restitution and obtain workers’ compensation insurance.

The Workers’ Compensation Board equitably and fairly administers the provisions of the New York State Workers’ Compensation Law on behalf of New York’s injured workers and their employers. To report workers’ compensation fraud, call 888-363-6001.

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