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March 20, 2025   Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Jacksonville residents Travis Morgan Slaughter and Tripp Charles Slaughter to 41 months and 21 months in federal prison, respectively, for conspiracy to commit mail and wire fraud and conspiracy to commit tax fraud related to Jacksonville roofing businesses they operated. The Slaughters pled guilty on November 25, 2024.   As part of their sentence, the court entered an order of forfeiture against Travis Slaughter in the amount of $2,780,947.56 and against Tripp Slaughter in the amount $416,799.66, which were proceeds traceable to the mail and wire fraud offenses. The court also ordered Travis Slaughter to pay restitution in the amount of $6,768,612.32 to the Internal Revenue Service (IRS) for payroll tax losses, $2,780,947.56 to two insurance companies for unpaid workers’ compensation insurance premiums, and $271,217.39 to the same two companies for two paid workers’ compensation claims. The court ordered Tripp Slaughter to pay restitution of $623,269.64 to the IRS for payroll tax losses, $416,799.66 to an insurance company for unpaid workers’ compensation insurance premiums, and $137,778.39 to the same company for a paid workers’ compensation claim.   According to court documents, beginning in 2007, Travis Slaughter operated a roofing business in Jacksonville, first under the name Great White Construction and then under the name Florida Roofing Experts. In January 2020, the business began operating under the name 5 Star Roofing Services, which Tripp Slaughter incorporated. Although the name changed, each business operated in the same manner, banked at the same financial institutions, and employed the same employees.   The company contracted with professional employer organizations (PEOs) to prepare payroll checks for employees, after making deductions for payroll taxes, and to file payroll tax returns and forward tax payments to governmental authorities. However, the company did not provide the PEOs with information about all the hours worked by, or all the wages due to, its employees. Instead, the company also paid the employees directly, with separate checks drawn on company bank accounts, and did not deduct payroll taxes from these checks. By paying employees with “split checks”—one from the PEO and one from the company—the company avoided paying the full amount of payroll taxes due to the IRS. For the period of October 2015 through June 2020, the company paid a total of approximately $23,079,680 in wages that were not reported to the IRS. The payroll taxes due to the IRS on this amount total approximately $4,292,429. The PEOs also secured workers’ compensation insurance coverage for the company. The premiums charged by the workers’ compensation insurers were based on the total amount of payroll that the company reported to the PEOs. If the company had reported the actual amount of payroll, the insurers would have charged additional premiums totaling approximately $2,780,947.   In addition to causing the company to underreport their payroll to the IRS, the Slaughters also underreported their personal income to the IRS. For the tax years 2014 through 2019, the unpaid taxes due on Travis Slaughter’s unreported income totaled approximately $2,467,183. For the tax years 2015 through 2019, the unpaid taxes due on Tripp Slaughter’s unreported income totaled approximately $263,614.   “The actions of these two defendants represent a blatant disregard for U.S. law and our financial systems. Despite operating successful construction businesses that generated millions of dollars in wealth, their greed drove them to lie and cheat for years,” said Special Agent in Charge Ron Loecker, of the IRS Criminal Investigation (IRS-CI), Tampa Field Office. “Their scheme to evade millions of dollars in taxes not only undermined the integrity of our tax system but also created an unfair advantage in which law-abiding competitors cannot compete for bids.  Our job is to make sure dishonest offenders like these two face the consequences of their criminal activities.”   “The Slaughters defrauded insurance companies of millions in workers’ compensation insurance premiums and will be responsible for financial restitution for the loss of insurance premiums and death and injury claims,” said ICE HSI Tampa, Jacksonville office Assistant Special Agent in Charge Tim Hemker. “As part of this criminal enterprise, they also exploited the labor of hundreds of illegal aliens.”   This case was investigated by Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, Housing and Urban Development – Office of Inspector General, and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.

March 20, 2025   Comprehensive training and a robust safety culture are key to preventing electrocution risks in manufacturing settings.   Electrical hazards are one of the most dangerous and often overlooked risks in manufacturing. Many workers assume that factory and production-controlled environments, established protocols, and modern equipment eliminate the possibility of electrocution from high-voltage equipment. However, data proves otherwise.   The manufacturing industry is among the top five industries with the highest number of electrical fatalities. According to the Electrical Safety Foundation International (ESFI), 74% of workplace electrical fatalities occur in non-electrical occupations, indicating that workers outside of traditional electrical roles face significant risks. Additionally, 28% of all workplace electrical fatalities take place on industrial premises, reinforcing the need for heightened safety awareness in manufacturing environments.   Electrocution incidents in manufacturing often occur unexpectedly due to heavy-voltage equipment and arc-flash injuries. Arc flashes, which are sudden releases of electrical energy through the air due to a fault, can result in severe burns, neurological damage, and fatalities. These incidents often are caused by improper procedures, lack of training and PPE usage, and unauthorized personnel interacting with electrical systems.   Beyond the human impact, electrical incidents can result in significant financial and reputational consequences for businesses. The BLS reported 2.6 million nonfatal workplace injuries and illnesses in 2023—the latest data available—with more than 900,000 cases leading to time away from work. These disruptions hinder operations, lower productivity, and drive insurance costs higher, making proactive safety measures essential for maintaining efficiency and financial stability in manufacturing environments.   A 2024 industry report revealed that many manufacturing employees feel unsafe due to inadequate safety training and outdated procedures. This signals a pressing need for leadership to address training gaps and reinforce electrical safety measures as soon as possible.   The reality is that most electrocution accidents are preventable. When organizations and workers disregard or aren’t trained on proper safety protocols, they expose themselves to unnecessary risks. It’s the responsibility of leadership to create and enforce a culture of electrical safety by implementing industry best practices that include proper training and firm adherence to safety regulations.   How to Create a Culture of Electrical Safety Electrical safety in manufacturing extends beyond compliance with regulations—it requires a proactive, company-wide commitment to safety. Risks can be significantly minimized when workers at all levels understand proper procedures, are encouraged to take action, and follow established safety protocols. In addition, many insurers offer risk management programs designed to evaluate safety procedures, identify hazards, and recommend necessary training improvements across your manufacturing production environment.   Building a culture of electrical safety involves a structured approach that includes training, employee empowerment, daily reinforcement, and access to control measures.   Below are four key steps to ensuring a safe manufacturing environment.   Read more

March 19, 2025 Several bills introduced by Florida legislators aim to strengthen Florida’s E-Verify law—particularly by eliminating the twenty-five–employee minimum for use of the database—and include increased penalties for noncompliance. They also add independent contractors to the definition of “employee.” These changes are part of the state’s and the federal government’s continued initiative to combat illegal immigration.   Quick Hits Florida legislation proposes eliminating the twenty-five–employee minimum threshold requiring private employers to use E-Verify, effectively requiring all private employers to use E-Verify for their workforces, regardless of size. The legislation proposes to include independent contractors within the definition of “employee” for E-Verify purposes, breaking from federal law, which does not require an I-9 for such individuals. The legislation proposes significant business license and financial penalties for noncompliance as well as if an unauthorized alien worker causes injury or death to another. Following the change of presidential administration in late January 2025, Florida Governor Ron DeSantis came under pressure by Republican lawmakers for his office’s perceived failure to enforce the state’s current E-Verify statute. This pressure aligns with the Trump administration’s initiative of combating illegal immigration. Shortly after, Governor DeSantis signed immigration legislation into law with respect to penalties for undocumented immigrants and a new State Board of Immigration Enforcement.   The Florida Legislature is now taking steps to strengthen the existing E-Verify laws for private employers. On February 17, 2025, Florida state Senator Jason Pizzo (D–District 37) filed Senate Bill (SB) 782: Immigration, and on February 25, 2025, Florida state Representative Allison Tant (D–District 9) filed House Bill (HB) 1033: Immigration Status and Employment Eligibility. These bills are identical and contain four main proposals: ·        revising the duties of the Office of Economic Accountability and Transparency within the Department of Commerce; ·        revising penalties for employment of unauthorized aliens; ·        revising the definition of “employee”; and ·        requiring all Florida employers to use E-Verify regardless of size. Regarding the first point, the legislation would move the administration and enforcement of the E-Verify system from the Florida Department of Law Enforcement to the Office of Economic Accountability and Transparency, a division of the Department of Commerce.   Regarding the second point, the proposal is to increase the penalties to suspension or revocation of a business license for one year and a fine not to exceed $10,000 for a first-time offender. For a second-time offender, the penalty would be increased to a five-year suspension or revocation of business licenses and a fine not to exceed $50,000. For a third-time offender, the penalty would be increased to a permanent revocation of all business licenses and a fine not to exceed $250,000.   The proposal also includes suspension or revocation of business licenses if an unauthorized alien worker causes injuries or death to another person—five years and up to a $100,000 fine for injuries and permanent revocation and up to a $500,000 fine for death. Any fines collected would be deposited into the Florida Highway Patrol Safety Operating Trust Fund, the creation and operation of which is not publicly available at the time of publication. The current penalties are far less extreme in terms of business license suspension or revocations and do not include monetary fines.   Regarding the third point, the legislation would eliminate the twenty-five-employee minimum threshold for private employers to use E-Verify. It also modifies the definition of “employee” to include individuals who work on an “occasional, incidental, or irregular” basis, as well as independent contractors. The inclusion of independent contractors in this proposal is problematic, considering federal law does not require employers to prepare I-9s for independent contractors; however, an I-9 is required to complete an E-Verify. Regarding the fourth point, the twin bills would allow federal immigration authorities to use the E-Verify system to investigate a detained person’s immigration status.   On February 24, 2025, Representative Berny Jacques (R–District 59) filed HB 955: Employment Eligibility, which proposes to eliminate the required minimum number of employees needed to trigger private employers’ requirement to use E-Verify. The current statute, 448.095, only requires private employers’ use of E-Verify if they employ twenty-five or more employees. HB 995 would eliminate this twenty-five-employee threshold, effectively requiring use of E-Verify for all Florida private employers.   SB 782, HB 995, and HB 1033 all propose to go into effect on July 1, 2025. At the time of publication, all three bills remain in the committee review stage and have each had one of the required three readings. In the Florida Legislature, following three readings, a bill will be put on the floor for a full chamber vote. If it passes in the chamber, either Senate or House, it then goes to the other chamber for an additional vote. If that second vote passes, the bill will go to the governor to sign or veto. The last day of Florida’s regular session is May 2, 2025, effectively making this the deadline for the bill (in its current or modified version) to pass or fail.   Next Steps The landscape for how private employers engage in employment authorization would change significantly if any of this legislation comes to fruition. Moreover, such legislation would significantly increase the consequences for a purported failure to comply with Florida’s E-Verify laws. Employers may want to review existing E-Verify policies and procedures to ensure compliance with the current statute in preparation for these potential changes.

March 4, 2025   False statements about previous injuries get overruled– because of the employer's actions   Inalfa Roof Systems has a significant presence in the United States, with multiple manufacturing facilities and engineering centers supporting the North American automotive market. The company operates major plants in Michigan and Georgia, where it produces sunroofs and panoramic roof systems for leading automakers, including Ford, General Motors, and Stellantis. Inalfa is owned by Beijing Hainachuan Automotive Parts Co., Ltd. (BHAP), a subsidiary of the BAIC Group, one of China’s largest state-owned automotive manufacturers.   Sharon McKay, an employee at the company, sustained two separate workplace injuries in 2021. The case primarily focused on the second injury, which occurred on September 14, 2021. McKay had originally been hired in late 2020 as an assembly operator, a physically demanding job requiring significant lifting, standing, and mobility.   The legal dispute At the heart of the case was the Rycroft defense, a legal precedent from a 1989 Georgia Supreme Court ruling. The Rycroft defense allows an employer to deny workers' compensation benefits if three conditions are met: 1.       The employee knowingly made a false statement about their medical history. 2.       The employer relied on that false statement when making the hiring decision. 3.       There is a direct connection between the false statement and the injury in question. Inalfa successfully used this defense to argue that McKay’s original June 11 injury should not qualify for workers’ compensation because she had not disclosed her previous back injury. The State Board of Workers’ Compensation agreed with Inalfa, and the superior court upheld the decision. However, McKay appealed, arguing that the Rycroft defense should not apply to her second injury on September 14. By that time, Inalfa knew about her past injuries and had still allowed her to continue working.   Read more

March 3, 2025   Jacksonville, Florida – U.S. District Judge Wendy W. Berger has sentenced Marielys Feliciano Rodriguez (47, Orlando) to one year of house arrest and ordered her to pay $3,338,558 in restitution to the Internal Revenue Service for wire fraud and tax fraud. She was also ordered to serve a five-year term of supervised release. The court also entered a money judgment against Rodriguez in the amount of $347,760, representing the proceeds of the wire fraud.   According to court documents, Rodriguez established a shell company that purported to be involved in the construction industry. She obtained a workers’ compensation insurance policy in the name of the shell company to cover a minimal payroll for a few purported employees, then “rented” the workers’ compensation insurance to work crews who had obtained subcontracts with construction contractors on projects in various Florida counties as well as contractors in other states. Rodriguez sent the contractors a certificate as “proof” that the work crews had workers’ compensation insurance, as required by Florida law. By sending the certificate Rodriguez falsely represented that the work crews worked for the shell company. Over the course of the scheme, Rodriguez “rented” the certificates to dozens of work crews, defrauding the worker’s compensation carrier, typically allowing numerous undocumented illegal workers to be employed unlawfully.   As part of the scheme, the contractors issued payroll checks for the workers’ wages to the shell companies and Rodriguez cashed these checks, then distributed the cash to the work crews, after deducting their fee, which was typically about 6% of the payroll. During the scheme, Rodriguez cashed payroll checks totaling approximately $13 million. Neither the shell company nor the contractors reported to government authorities the wages that were paid to the workers, nor did they pay either the employees’ or the employer’s portion of payroll taxes – including Social Security, Medicare, and federal income tax. The amount of payroll taxes due on wages collected by Rodriguez totaled over $3 million.   The scheme also facilitated the avoidance of the higher cost of obtaining adequate workers’ compensation insurance for the numerous workers on the work crews to whom Rodriguez “rented” the workers’ compensation insurance. The policy that Rodriguez purchased and then “rented” out was for an estimated payroll of $121,800 and the insurance company issued a policy for a premium of approximately $8,006. Had a workers’ compensation insurance policy been purchased for the actual payroll totaling approximately $5 million dollars, the policy premium would have totaled about $461,679.   Read more

February 20, 2025 A Florida man was sentenced yesterday to 48 months in prison and ordered to forfeit more than $5.5 million to the United States as well as forfeit numerous real properties and cash, and to pay over $55 million in restitution for conspiracy to commit wire fraud, conspiracy to defraud the United States and willful violation of a workplace standard that resulted in the death of his employee. Manual Domingos Pita, of Wesley Chapel, previously pleaded guilty to those charges on July 9, 2024.   According to court documents, Pita owned and operated Domingos 54 Construction, a subcontracting business for the wood framing of new construction homes. Domingos 54 was a shell construction company that Pita used to provide workers, including undocumented aliens, with construction jobs. However, Pita failed to secure the required workers compensation insurance coverage for these employees by falsifying in worker’s compensation insurance applications the number of workers for which he sought coverage. In addition, Pita failed to pay any federal employment taxes on the wages that these workers earned during the course of the scheme between 2018 and 2022. As a result, Pita caused several worker’s compensation insurance companies to sustain a loss of over $22.7 million in premiums that they could have charged had they been aware of the number of workers which they had been manipulated into covering with their policies. In addition, Pita failed to pay to the IRS over $33.7 million in federal employment taxes on those workers’ wages.   Between February and July 2019, investigators with the Occupational Safety and Health Administration (OSHA) issued six citations to Domingos 54 for failure to provide fall protection to workers. Even after being cited for these violations, Pita continued to ignore OSHA requirements. In March 2020, Pita assigned a worker and three other carpenters to install sheeting on the roof of a residential home in windy conditions without providing the required fall-protection gear or ensuring its use. As a result, one of the workers was blown off the roof and died from his injuries.   “Pita’s history of OSHA violations and deception tragically led to a worker’s death,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division. “We are committed to upholding the rule of law by prosecuting fraud and enforcing worker safety standards.” Read more