Wash. DOL Fines Contractor over Workers’ Comp Violations

The Washington Department of Labor and Industries has put Skanska USA Building Inc. on notice that it will lose its certificate to self-insure if it doesn’t improve the way it manages workers’ compensation insurance claims.

In addition to the “corrective action,” L&I issued the largest fine ever levied against a self-insured employer, assessing Skanska USA $136,264 in penalties for its mismanagement of workers’ comp claims over the past six years. That is in addition to the $124,811 an L&I audit found the company underpaid injured workers who did file claims.

Skanska began taking steps to correct deficiencies in its handling of claims, but has exercised its legal rights by protesting the audit findings. L&I has asked the company for records that support its contention that some of the audit findings are wrong.

Skanska AB is headquartered in Sweden. Three years ago it purchased Baugh Construction Co. An L&I audit of the firm found that under both ownerships, the company failed to provide forms to file workers’ comp claims to at least 468 workers who were injured on the job. The violations date back to 1999. Workers told L&I investigators that company officials threatened to fire them, or not hire them back on other jobs, if they filed a workplace injury claim.

Washington state law allows companies that meet established financial and safety criteria to manage their own workers’ comp claims.

In addition to the fine and back payments, Labor and Industries will closely monitor Skanska’s management of its workers’ comp claims to ensure the company has corrected its practices and is in compliance with the law. The agency will take steps to revoke the company’s self-insurance status if it doesn’t manage claims properly.

Topics Workers' Compensation Washington Contractors