CWS 3.0: December 23, 2014

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Regulatory watch: Worker safety and misclassification

OSHA has fined a nail polish manufacturer and two staffing firms for exposing workers to dangerous chemical hazards and vapors from flammable liquids; Rhode Island has established an anonymous telephone tip line for allegations of employee misclassification.

OSHA Violations

The US Department of Labor’s Occupational Safety and Health Administration has fined nail polish manufacturer Fiabila USA Inc. and its staffing providers, JobConnection Services Inc. and Joulé Clinical & Scientific Staffing Solutions, $139,500 for exposing workers and temps to workplace dangers.

Following a complaint, OSHA conducted an inspection of Fiabila’s Mine Hill, N.J., facility in May, and found workers and temps  were exposed to hazards and other dangerous safety and health violations at the plant. OSHA issued 30 citations against the nail polish manufacturer and the staffing agencies. Proposed penalties total $139,500.

Fiabila faces $109,200 in penalties for 23 serious violations and two other-than-serious violations, which exposed plant employees to fire, explosion and safety and health hazards related to flammable chemicals. Fiabila stored thousands of pounds of flammable liquids on-site in indoor storage tanks. One tank overflowed in July 2014 because of a disabled or broken safety mechanism.

Both of the staffing firms involved were cited for failure to train temporary workers on chemical hazards, emergency action plans and proper respirator use. JobConnection Services Inc. in Dover faces $18,000 in fines and Joulé Clinical & Scientific Staffing Solutions, a division of System One, was fined $12,000.

Misclassification tip line

Rhode Island announced a six-agency task force has established a tip line for the anonymous reporting of worker misclassification. The Joint Task Force on the Underground Economy and Employee Misclassification is also building a website for anonymous online reporting.

In addition to the task force, Department of Labor and Training Director Charles J. Fogarty and RI Tax Administrator David M. Sullivan announced their agencies have formed a panel to:

1. coordinate joint efforts to combat fraudulent employment activities;
 2. foster voluntary compliance with the law by educating workers and employers;
 3. protect the health, safety and benefit rights of workers; and
 4. protect law-abiding businesses from being undercut by companies that skirt the law. If warranted, an investigation may be referred to the Office of Attorney General.

“One of our major goals is educating, not violating, Rhode Island companies that might unknowingly be misclassifying their workers,” Fogarty said. “At the same time, however, fighting misclassification is an important strategy to promoting shared prosperity in our state.”

“While the vast majority of Rhode Island businesses are playing by the rules, those who aren’t must be identified and stopped,” said Attorney General Peter F. Kilmartin. “This small number of corrupt businesses is denying workers their basic protections by misclassifying employees in order to evade paying for unemployment benefits and workers’ compensation insurance. The result is an uneven playing field that hurts honest and law-abiding employers.” 

Staffed by the Rhode Island Division of Taxation, the tip line number is 401-574-8477.