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January 22, 2025   JACKSONVILLE, Fla. — A Mexican national was sentenced to more than two years in prison and ordered to pay more than $3.5 million in restitution to the Internal Revenue Service (IRS) for conspiracy to commit wire fraud and conspiracy to defraud the United States following a Homeland Security Investigations (HSI) Jacksonville investigation.   Jose Molina-Herrera, 27, of Honduras, was sentenced to 27 months in federal prison. The court also ordered Molina-Herrera to forfeit $867,005, which are proceeds of the wire fraud offense. In addition, Molina-Herrera was ordered to pay a total of $3,558,579.42 in restitution to the IRS. Molina-Herrera entered a guilty plea on Nov. 1, 2024.   Read more

by Louise Esola  Jan 21, 2025           The Occupational Safety and Health Administration fined a Vero Beach, Florida-based drainpipe cleaning and maintenance company $16,131 for alleged safety lapses at a worksite where a worker was killed in June 2024.   The agency said Thursday its investigation of Southeast Services of the Treasure Coast Inc. found that during the cleaning of a drainpipe at a Port St. Lucie, Florida, worksite, the pipe’s pressurized plug became over-inflated, causing an explosion so powerful that it ejected one worker 15 feet from the storm drain, resulting in his death.   OSHA cited the company for a “serious” violation for failing to develop and implement procedures and train workers on how to install and remove pneumatic pipe plugs safely. This failure put workers at risk of being struck by dangerous equipment, the agency said.

Tuesday, January 21, 2025 Jacksonville, Florida – Senior U.S. District Judge Brian J. Davis today sentenced Jose Molina-Herrera (27, Honduras) to 27 months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the United States for the purpose of impeding the lawful functions of the Internal Revenue Service (IRS).    The court also ordered Molina-Herrera to forfeit $867,005, which are proceeds of the wire fraud offense. In addition, Molina-Herrera was ordered to pay $3,558,579.42 in restitution to the IRS. Molina-Herrera entered a guilty plea on November 1, 2024. According to court documents, between 2019 and 2020, Molina-Herrera conspired with others to facilitate the payment of construction workers “off the books” to avoid paying premiums for workers’ compensation insurance and payroll taxes.   Construction contractors and subcontractors entered arrangements with the conspirators, through which All National Remodeling LLC – a shell company formed by Molina-Herrera – facilitated both the distribution of proof of insurance and the payment of workers with cash. In exchange for 6% to 8% of the contractors’ and subcontractors’ payroll, Molina-Herrera and others caused the distribution of certificates of liability insurance in the name of All National Remodeling, which contractors and subcontractors then used as nominal proof that workers were supposedly insured.   In reality, All National Remodeling’s insurance policy was issued based on a fraudulent application that never disclosed that contractors and subcontractors would be employing workers who were ostensibly insured under the shell company’s barebones insurance policy. As a result of contractors and subcontractors using All National Remodeling’s proof of insurance, but never paying any insurance premiums, the insurance company was defrauded more than $2.2 million. . Molina-Herrera and others also facilitated the deposit of checks into the shell company’s bank accounts, as well as the withdrawal of cash to be paid to workers – all without withholding, or paying over, payroll taxes to the IRS. Through these arrangements with the conspirators, the construction contractors and subcontractors could disclaim responsibility for withholding and paying payroll taxes to the IRS or ensuring that the workers were legally authorized to work in the United States. By facilitating payments to workers of over $14 million without payroll taxes being withheld, Molina-Herrera and his co-conspirators caused the U.S. Treasury to lose more than $3.5 million in tax receipts. One of Molina-Herrera’s co-conspirators, Oscar Molina-Avila, was previously sentenced to 52 months’ imprisonment for his role in the scheme. “Using shell companies to pay workers under the table is not only illegal, it gives an unfair competitive advantage that businesses who do things the right way can’t match,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office.  “We will continue to investigate these schemes to ensure compliance with the law and return competitive balance to the industry.” “Wire fraud and the facilitation of “off the books” payments not only undermine the integrity of our legal and economic systems but also supports unlawful employment activities.” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge Tim Hemker. “Homeland Security Investigations, alongside our partners at the Internal revenue Service – Criminal Investigations and the Florida Department of Financial Services – Bureau of Insurance Fraud, is committed to holding those who facilitate these complex fraud schemes accountable for their actions.”          This case was investigated by the Internal Revenue Service—Criminal Investigation, Homeland Security Investigations, and the Florida Department of Financial Services – Bureau of Insurance Fraud. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

Washington — OSHA has extended for another year its National Emphasis Program on outdoor and indoor heat-related hazards.   The program was set to expire April 8.   “OSHA’s review of this NEP shows success in identifying and targeting industries with employee exposures to heat-related hazards, while removing nearly 1,400 employees from these hazards,” states an agency notice published Jan. 16.   Since initiating the NEP in April 2022, OSHA says it has conducted around 7,000 heat-related inspections and issued 60 citations for violations of the General Duty Clause – along with nearly 1,400 hazard alert letters.   By contrast, the agency completed around 200 annual heat-related inspections from 2015 to 2020. That included approximately 15 fatality inspections each year.   Under the NEP, OSHA conducts heat-related inspections of more than 70 “high-risk” industries if the National Weather Service issues a heat warning or advisory for a local area. The agency also engages in outreach and provides technical assistance when the heat index reaches at least 80° F.   Additionally, OSHA compliance safety and health officers look for heat hazards during all inspections.

January 16, 2025   Southeast Services of the Treasure Coast failed to identify pressurized plug as hazard   PORT ST. LUCIE, FL – A U.S. Department of Labor investigation has found that a drainpipe cleaning and maintenance company could have prevented an explosion at a Port Saint Lucie worksite in June 2024 that claimed a 24-year-old worker's life, by implementing proper safety measures to address the hazards of inflatable pipe plugs.   An investigation by the department's Occupational Safety and Health Administration revealed that on June 8, 2024, two employees of Southeast Services of the Treasure Coast Inc. were cleaning a drainpipe at the intersection of Southwest Becker Road and Southwest Village Parkway. During the process, the pipe's pressurized plug became over-inflated, causing an explosion so powerful that it ejected one worker 15 feet from the storm drain, resulting in fatal injuries.   OSHA cited the Vero Beach-based employer for a serious violation for failing to develop and implement procedures and train workers on how to install and remove pneumatic pipe plugs safely. This failure put workers at risk of being struck by dangerous equipment.   "Pressurized equipment poses significant danger, and employers must put safeguards in place and take all necessary precautions to protect workers from these hazards," said OSHA Area Director Condell Eastmond in Fort Lauderdale, Florida. "If employers ignore critical safety measures, the consequences can be devastating, leaving an unfillable void in the lives of the families impacted by such tragedies."   OSHA has assessed the employer $16,131 in proposed penalties.   Southeast Services of the Treasure Coast Inc. is an underground utility company that specializes in the maintenance of sanitary sewer and storm water. The company employs approximately 30 workers and serves the east coast of Florida, including Brevard, Indian River, St. Lucie and Martin counties.   The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA, or contest the findings before the independent Occupational Safety and Health Review Commission.

January 16, 2025   Mosaic Fertilizer LLC faces 2 serious safety violations   MULBERRY, FL – A U.S. Department of Labor investigation determined a Mulberry phosphatic fertilizer manufacturer failed to follow required safety standards, leading to the tragic loss of a 29-year-old process operator in July 2024.   Investigators with the department’s Occupational Safety and Health Administration found that Mosaic Fertilizer LLC did not ensure the rotating portion of the east and west industrial ribbon blenders – a device that mixes the finished fertilizer with a coating oil – had the proper guarding in place or secured. The worker, who was collecting a sample for analysis, suffered fatal injuries after falling into the unguarded ribbon blender.   “This unfortunate incident could have been prevented had Mosaic Fertilizer LLC ensured all machines were secured and guarded,” said OSHA Area Director Danelle Jindra in Tampa, Florida. “In this case, the employer failed to protect workers as the law requires. No employee should lose their life because an employer neglects basic safety measures.”   OSHA issued the employer two serious violations and proposed $30,649 in penalties.   Mosaic Fertilizer LLC is based in Mulberry and has 600 employees at the site. It employs 2,500 workers nationwide.   The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission

January 14, 2025   WASHINGTON – The U.S. Department of Labor announced changes to the Occupational Safety and Health Administration civil penalty amounts based on inflation for 2025.   In 2015, Congress passed the Federal Civil Penalties Inflation Adjustment Act Improvements Act to advance the effectiveness of civil monetary penalties and to maintain their deterrent effect. Under the Act, agencies are required to publish "catch-up" rules that adjust the level of civil monetary penalties and make subsequent annual adjustments for inflation no later than January 15 of each year.   On Jan. 15, 2025, the maximum OSHA penalties for serious and other-than-serious violations will increase from $16,131 to $16,550 per violation. The maximum penalty for willful or repeated violations will increase from $161,323 to $165,514 per violation.

January 13, 2025   Waltham, MA — The number of heat-related illnesses “increases significantly” once the temperature rises above 80° F, results of a recent analysis from the Workers Compensation Research Institute show.   For its Heat-Related Illnesses in the Workplace report, WCRI reviewed 2013-2020 workers’ comp claims data from 31 states to identify worker groups that more commonly experience heat-related illnesses (including heat exhaustion and heatstroke) based on their age, gender and tenure at the time of injury, as well as industry and regional composition. Compared with days with maximum temperatures of 75-80° F, the number of heat-related illnesses was seven times greater on days with high temps of 90-95° F, 11 times higher on days reaching 95-100° F and 18 times greater when the high temp exceeded 100° F.

January 9, 2025   Stevens Point, WI — In the retail and wholesale industry, employees in their first year on the job account for more than a third of all work-related injuries, a recent analysis shows.   For its 2024 Retail & Wholesale Injury Report, insurance provider Sentry reviewed more than 22,000 injury claims to gain a better understanding of the underlying risks within the industry. The report notes that the industry is characterized by high turnover and seasonal hiring, making it difficult to maintain a consistently trained team.   Findings show that 38% of the injuries involved workers, regardless of age, in their first year at a retail or wholesale company. Workers with one to five years of experience made up 28% of the injuries.   Other findings: ·        On average, employees missed 70 days of work because of an injury. ·        63% of the injuries occurred among workers younger than 30 and older than 50. ·        Top injury causes: strain by lifting (11%), struck by falling/flying object (8%) and slips from the same level (7%). ·        Strain (27%) was the most common injury type, followed by contusion (18%) and laceration (15%). ·        Most common body parts injured: fingers (11%), multiple (11%) and lower back (10%).   Worker well-being can also be affected, as those injured can experience chronic pain, dependence on pain medication and mental/social/emotional challenges.   Dan Grant, director of corporate safety services at Sentry, says in the report that ongoing training is a valuable tool in preventing injuries.   “Prevention requires consistent monitoring, evaluation and support,” he said. “We’ve seen success when retailers and warehouses adopt a trusted ‘coach’ or mentor system to help new workers. Coaches not only help new employees learn their roles, but also ensure tasks are performed safety.”

January 3, 2025   Aurora, CO — A collaborative research effort is underway to build a toolkit to help construction managers, supervisors and workers identify and address safety and health challenges unique to the industry.   The Collaborative Leadership for Safety and Health in Construction project is being led by researchers from the Colorado School of Public Health and the Center for Promotion of Health in the New England Workplace. It’s supported by CPWR – the Center for Construction Research and Training, NIOSH, and the Centers for Disease Control and Prevention. The five-year project is focused on the critical safety and mental health challenges in construction, an industry known for high rates of injuries, fatalities and psychosocial issues such as suicide and substance use.   The researchers expect the resulting toolkit to foster a culture of safety and health that’s both comprehensive and sustainable by emphasizing collaboration between various levels of the workforce and, in turn, contribute to reduced injury rates and enhanced worker health and well-being.   The team will work with industry advisors – including representatives from academia, labor unions and safety professions – to ensure the toolkit reflects a wide range of perspectives to increase its potential adaptability and effectiveness.   Eight contractors will implement and use the toolkit as the researchers evaluate the process. After the evaluation process, the toolkit will be disseminated via OSHA, along with some labor unions, contractor associations, professional safety and health associations, and workers’ compensation insurers.   “The secret sauce of our approach is the focus on both leadership commitment and workforce engagement,” project leader Natalie Schwatka, assistant professor at the Centers for Health, Work & Environment at the Colorado SPH, said in a press release. “This project is about creating a framework that gives both managers/supervisors and workers a more active role in the safety and well-being initiatives at their workplace.   “The upside for workers is that this project gives them a seat at the table throughout the process.”