Workers’ Compensation Board Orders Two More Businesses to “Stop Work”

ALBANY,, NY (07/26/2007)(readMedia)-- New York State Workers’ Compensation Board Chair Donna Ferrara today ordered two more businesses to close immediately for failing to comply with workers’ compensation laws.

This is the second set of closures ordered under the workers’ compensation reform initiative Gov. Eliot Spitzer signed into law in March. The Board can now order businesses to shut down for failing to obtain workers’ compensation insurance.

“The health and safety of working people is too important to tolerate employers who ignore the law,” Ferrara said. “These firms have seen their employees injured, and they have ignored orders to secure workers’ compensation insurance.”

Workers injured on the job are entitled to weekly wage payments and medical care under workers’ compensation law. If their employers are uninsured, these costs must be picked up by the state’s Uninsured Employers’ Fund. Businesses that have uninsured accidents must reimburse the fund.

In 2006, an employee of Advantage Home Improvement at 277 Main St. in Johnson City filed a claim for a work-related injury. The company, which is still operating without insurance, is owned by John Horner and owes $64,221 in restitution and penalties.

Carman Lafalce, owner of Paul’s Cleaners at 21 New Scotland Ave. in Albany, acknowledged he did not have insurance when two of his workers sustained injuries on the job in 1998 and 1999. With penalties and restitution, Paul’s Cleaners owes $88,225. The business is still operating without insurance.

Employers ordered to stop work can apply to the Board to have the 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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