Pennsylvania Employer Sentenced for Not Carrying Workers’ Compensation Insurance

June 21, 2000

A Westmoreland County employer who pleaded guilty to five misdemeanor violations of the Pennsylvania workers’ compensation law was recently sentenced to five years probation, ordered to pay $14,798 in restitution and to perform 50 hours of community service.

Kevin Scott, former corporate officer and agent of the now-defunct LITO Inc., doing business as the Norwin Athletic Club, was sentenced after an investigation headed by the Compliance Section of the state Bureau of Workers’ Compensation found LITO Inc. failed to carry workers’ compensation insurance from Dec. 25, 1995, until Oct. 7, 1999.

“Employers who are required to provide workers’ compensation insurance, but fail to do so, are subject to lawsuits by their injured employees,” said Bill Carney, Labor and Industry Deputy Secretary for Compensation and Insurance. “Such a lawsuit could so decimate a business that it might have to cease operations. These employers also are subject to criminal prosecution by the Commonwealth which could result in those employers having to pay significant fines and/or go to jail.”

The Pennsylvania Workers’ Compensation Act requires Pennsylvania employers to insure their workers for work-related injuries, deaths or illnesses. Unintentional failure of an employer to carry insurance is a third-degree misdemeanor. Intentional violations are a third-degree felony.

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