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Major Employers Pledge to Reduce Injuries 25% by 2025

Kicking off National Safety Month, and one year after announcing a historic partnership with Amazon, the National Safety Council unveiled the first-of-its-kind MSD Pledge to reduce the most common workplace injury, musculoskeletal disorders (MSDs). During the inaugural Workplace Safety Summit: Business Action to Prevent Musculoskeletal Injuries, more than 15 of the nation’s leading organizations joined this effort and signed the pledge to improve workplace safety, reduce MSD risk, and enhance all workers’ well-being.

MSDs – such as tendinitis, back strains and sprains, and carpal tunnel syndrome – impact nearly a quarter of the world’s population and are the leading cause of worker disability, early retirement, and limitations to gainful employment. The MSD Pledge seeks to create safer outcomes for millions of workers worldwide by reducing these injuries by 25% by 2025. By making critical changes, employers will also build more equitable workplaces for frontline workers and communities of color, which are two groups disproportionately impacted by MSDs.

Along with Amazon and NSC, founding pledge members include Alcon Research, LLC; Ansell Inteliforz; Amentum; American Industrial Hygiene Association; AMP; Benchmark ESG; Cummins Inc.; Human Balance and Stability Systems, LLC; John Deere; MEGA InTech; Meteorite; Tenneco; United Airlines; and VelocityEHS.

Organizations signing the MSD Pledge promise to:

– – Reduce risks by analyzing the causes of MSD injuries across operations and investing in solutions and practices that reduce risks to workers.
– – Innovate and collaborate by leveraging best practices and sharing learnings and countermeasures to expand upon innovations to improve safety practices.
– – Build an organizational culture that values safety by promoting a workplace where safety excellence, transparency, and accurate reporting are equally valued, and where everyone, at every level of the organization, is accountable for the safety and health of workers.
– – Commit to a significant reduction of MSD injuries by creating safer outcomes for millions of workers worldwide and reducing MSD risk and subsequent injuries by 25% by 2025.

In addition to accessing free resources and sharing safety innovations to help reduce MSD risks, MSD Pledge members will participate in the MSD Solutions Index, an annual company index that analyzes the benefits of the pledge over time.

The index will aggregate data on risk reduction strategies, workplace safety culture, and innovation and collaboration, while also identifying areas for targeted action and uncovering trends to inform future approaches. MSD Pledge members benefit from free events, training and coaching opportunities from the Council’s team of ergonomics experts, as well as opportunities to share best practices and lessons learned with one another. Participation in the MSD Pledge is free and open to any employer that is committed to identifying and reducing risks of MSD injuries and creating a culture of safety at work.

The MSD Pledge was developed at the MSD Solutions Lab, a ground breaking initiative established as part of the NSC and Amazon partnership to solve this omnipresent safety challenge. Led by NSC, the pledge is one of several initiatives launching in 2022 to achieve the program goal of preventing MSDs before they start, including:

– – Advisory Council: NSC has named the founding members of the advisory council for this ground breaking program. Composed of volunteers, these experts in safety, health, ergonomics and innovation support and inform the program’s work by engaging in, researching, solving, and amplifying MSD prevention efforts.
– – MSD 2025 Pioneering Research: Support comprehensive research efforts, including utilizing natural language processing, case studies, reports, and expansive systematic reviews and meta-analyses to explore current and future MSD prevention-related strategies. The research findings will be available to all industries to explore and glean insights.
– – Innovation Challenges: Individuals and organizations alike will have the opportunity to develop and share cutting-edge solutions to prevent and eliminate workplace-related MSDs. During this competition, prizes and grants will be awarded to honor innovation and help fund these solutions.
– – Small Business and University Grants: Provide grants to small businesses, universities, and students to fund research and innovation that help companies of all sizes achieve impact.

To learn more about the MSD Pledge, the MSD Solutions Lab, and the risks associated with MSDs, visit nsc.org/msd.

SDPD Officers File Shooting Range Lead Poisoning WC Claims

NBC7 San Diego reports that Seven San Diego Police Department officers have filed worker’s compensation claims after blood testing showed elevated lead levels in their bodies, and the Police Chief has shut down an outdoor gun range believed to be the cause.The range is located on Federal Boulevard, just north of state Route 94 and west of Interstate 805 in the Fairmount Park neighborhood.

About a month ago, the city ordered air sample tests at the range after officers raised concerns. It’s not unusual to find higher levels of lead at firing ranges, but those tests showed lead concentrations more than 10 times greater than the OSHA standard for acceptable air levels.

Every year, sworn SDPD officers are required to pass firearm proficiency training at that range for their service weapons and off-duty weapons. That’s a minimum of three sessions per gun.

The officers who work there have gray dust in their nose and ears at the end of the day from working there for 10 hours doing department shoots,” Wilson said. “And they’ve been subjected to lead dust for over a year now.”

A little more than a year ago, the city installed a Vortex Total Containment Trap as part of an ongoing renovation project. As bullets enter a chamber, they are funneled into a compartment that can be removed and emptied. Before that installation, bullets were fired through targets into dirt berms.

NBC 7 Investigates discovered the range was cited for violations relating to lead prior to the renovation. That happened during a routine inspection of the range in February of 2020. Five violations were discovered at that time, having to do with proper handling and disposal of hazardous waste.

– – Violation 1: Failed to make a proper waste determination
– – Violation 2: Failed to properly dispose of hazardous waste at an authorized facility.
– – Violation 3: Failed to maintain &/or operate facility to minimize the possibility of a fire, explosion, or any unplanned sudden or non-sudden release of hazardous waste or hazardous waste constituents.
– – Violation 4: Initial &/or annual employee training not conducted in safety procedures for a hazardous material release or threatened release &/or employee training records not available or not maintained for 3 years.
– – Violation 5: Failed to report &/or update the required inventory information for hazardous waste(s) generated at the facility in CERS.

The police union says the firearms instructors who work at the range now suffer from chronic headaches and joint pain, and that all seven officers recently tested for lead exposure and reported blood lead levels in the teens. NBC 7 Investigates asked to see those test results, but the officers declined to share their medical information.

Doctors say no level of lead in your blood is considered safe. Cal/OSHA requires that employers immediately remove workers who test at or above 50 micrograms of lead per deciliter of blood. The California Department of Public Health considers any level over five “dangerous.”

That’s why lead dust is especially concerning at gun ranges. Yet, the city chose not to install that dust collection unit, a piece of safety equipment that would added $184,000 to the city’s $17.8 million range renovation project.

When NBC7 asked the city why the collector wasn’t installed, they said it’s because it was optional. The manufacturer confirmed to NBC 7 Investigates some customers choose not to install them at outdoor ranges.

Fixing lead issues at the range is a priority now. Mayor Todd Gloria’s office didn’t make him available for an on-camera interview, but sent a statement:

Since the range is now closed, the department is advising officers to use other police agencies or private ranges to practice.

Telehealth Declines Nationally for Second Straight Month

In March 2022, telehealth utilization, as measured by telehealth’s share of all medical claim lines, fell nationally for the second straight month, according to FAIR Health’s Monthly Telehealth Regional Tracker.

Following a drop of 9.3 percent in February, telehealth utilization decreased 6.1 percent in March, declining from 4.9 percent of all medical claim lines in February to 4.6 percent in March.

Telehealth utilization also decreased in February in every US census region (Midwest, Northeast, South and West), with the greatest decrease (8.1 percent) in the South, followed closely by the West (7.8 percent). The data represent the privately insured population, including Medicare Advantage and excluding Medicare Fee-for-Service and Medicaid.

The drop in telehealth utilization was likely due to continuing reduction in the reported number and severity of COVID-19 infections, which may have led more patients to return to in-person healthcare services. Data published by the Centers for Disease Control and Prevention show that the number of reported cases of COVID-19 continued to fall in March.

The rankings of the top five telehealth diagnoses did not change nationally in March 2022, but there were some changes at the regional level. In the Northeast, acute respiratory diseases and infections rose from fifth place to second place in the rankings. In the South, encounter for examination fell off the list and urinary tract infections rejoined the list (in fifth place) for the first time since December 2021. In all regions and nationally, mental health conditions remained the top-ranking telehealth diagnosis.

The rankings of the top five telehealth specialties did not change nationally or in most regions in March 2022. But in the Midwest, psychiatrist and primary care nonphysician switched places, with the former rising to fourth place in March and the latter dropping to fifth place. In all regions and nationally, for the second month in a row, social worker remained the top-ranking telehealth specialty.

In March 2022, the rankings of the top five telehealth procedure codes did not change nationally or in any region. The number one telehealth procedure code nationally and in every region remained CPT®2 90837, one-hour psychotherapy.

For March 2022, the Telehealth Cost Corner spotlighted the cost of CPT 97803, therapy procedure reassessment for nutrition management, each 15 minutes. Nationally, the median charge amount for this service when rendered via telehealth was $49.97, and the median allowed amount was $31.58.3

California Loses 263,000 People and $17.8 B Taxable Income in 2020

Worker’s compensation premium is based upon employment income, and rising income equates to more premium dollars on average. It might therefore be reasonable to track employment income trends across various states as a leading indicator of workers’ compensation premium market conditions.

And using that metric, California does not look favorable in terms of employment income growth.

Every year, states across the country compete with each other for people and their wealth as millions of Americans move between states. The stakes are large. A growing population for the winners means an increasing tax base, economic growth and investment. For the biggest losers, it means more difficulties in paying down debts, higher taxes and fewer investments for the future.

The nation’s most-recent winners of migration from other states are Florida and Idaho according to the latest migration data released by the IRS. Florida, the nation’s perennial winner, gained the most people and income overall in 2020, while Idaho gained the most of both on a percentage basis.

On the other end of the competition are states that have become perennial losers. States like California, New York, Illinois and New Jersey once again experienced some of the nation’s biggest losses of both residents and their money.

Those findings are based on a Wirepoints’ analysis of the latest 2020 domestic migration data provided by the Internal Revenue Service. The IRS reviews tax returns annually to track when and where people move. It also aggregates the ages, income brackets and adjusted gross incomes of filers.

Florida attracted over $41.1 billion in Adjusted Gross Income (AGI) from 624,000 new residents (tax filers and their dependents) that moved into Florida in 2020. On the flip side, Florida lost $17.4 billion in AGI from 457,000 people who left. Overall, Florida came out ahead with 167,000 net new people and $23.7 billion in net new taxable income.

That’s a total gain of about 3.3 percent of the state’s total 2019 AGI ($711 billion).

Texas was the runner up with a net income gain of $6.3 billion, followed by Arizona with $4.8 billion. North and South Carolina rounded out the top five with net gains of $3.8 billion and $3.6 billion, respectively.

On the losing side, New York suffered the worst outflow of money of any state in 2020. The Empire State lost a net $19.5 billion in income, or 2.5 percent of its 2019 AGI, while a net of nearly 250,000 residents moved out.

California was next, losing a net $17.8 billion and 263,000 people. Illinois was third with a net loss of $8.5 billion and 101,000 people. Massachusetts and New Jersey were in 4th and 5th place, with $2.6 and $2.3 billion in income losses, respectively.

The problem with chronic outflows, like in the case of New York, is that one year’s losses don’t only affect the tax base the year they leave, but they also hurt all subsequent years. The losses pile up on top of each other, year after year. And when a state loses income to other states for 21 straight years, the numbers add up.

In 2020 alone, New York would have had nearly $123 billion more in AGI to tax had it not been for the state’s string of yearly migration losses. And when the state’s AGI losses are accumulated from 2000 to 2020, it totals $1.0 trillion in cumulative lost income that could have been taxed over the entire period.

The opposite is true for migration winners like Florida. Gains in people and income pile on top of each other each year, building an ever-growing tax base. In 2020 alone, the state’s tax base was some $197 billion higher due to the 20-year string of positive income gains from net in-migration.

Even though Florida doesn’t tax incomes, Wirepoints also added up Florida’s cumulative AGI to make an apples-to-apples comparison with New York. When the Sunshine State’s AGI gains are accumulated from 2000 to 2020, it totals $1.6 trillion in income that could have been taxed over the entire period.

Illinois, one of the nation’s other big losers, shows just how damaging being an “exit” state can be – especially when a state starts to lose its wealthier residents and and they are only partially replaced by people who make less. The Illinoisans who fled in 2020 earned, on average, $30,600 more than the residents Illinois gained from other states. That’s the biggest gap since at least 2000, based on Wirepoints’ analysis of the IRS data.

Based on a percentage of total income, Illinois ranked 2nd-worst nationally for income losses in 2020. Illinois lost 1.9 percent of its 2019 AGI. New York and Alaska ranked 1st and 3rd, with losses of 2.5 percent and 1.3 percent of their 2019 total incomes, respectively.

In contrast, Idaho was the nation’s big winner on a percentage basis in 2020, gaining 4.2 percent of its 2019 AGI base. The nation’s top five were rounded out by Wyoming, Montana, Florida and South Carolina.

California Last in 2022 Best and Worst Business Climate CEO Survey

In what’s become an annual rite of spring for its Best & Worst States for Business survey of CEOs, Texas and Florida held on to their No. 1 and No. 2 spots this year, continuing their long-running lock on the top of the rankings.

Based on polling of nearly 700 CEOs and business owners from every U.S. state, conducted in January and February 2022, the Lone Star State placed No. 1 again, as it has every year since Chief Executive began the compiling the list in 2001. Their combination of a fast-growth population and a low-tax, low-regulation business climate is proven catnip for companies.

It’s a position that seems unlikely to change, even as Governor Greg Abbott has stressed some corporate sensibilities in recent weeks by snarling supply chains with an order for state inspection of commercial trucks coming from Mexico, looking to stop the flow of illegal immigrants and drugs. Abbott also has assumed a high profile in the growing national controversy over new abortion restrictions that began with a law in Texas.

The state’s faltering electrical grid resulted in a similar tsunami of criticism – even worse in business circles, including a rare knuckle-rap from new Austin resident Elon Musk in early 2021—but that did little to chill the state’s reputation or ranking among CEOs.

Meanwhile, Florida has solidified its hold on the No. 2 position in the Chief Executive rankings with a consistently business-friendly approach under Governor Ron DeSantis that crested during the past couple of years with his hands-off approach to Covid shutdowns.

Texas has enjoyed an era of stunning growth based on a broadening of its economy to automobile production, digital-technology development and shared services as well as the traditional base in oil, gas and refining. And last fall, Samsung announced its investment of $17.1 billion to construct a microchip factory outside Austin.

Similarly, Florida and Tennessee (holding at No. 3) have welcomed continuing streams of new corporate investments, such as Ford’s recent multi-billion-dollar commitment to Tennessee to build electric vehicles there.

Arizona climbed six spots this year, to No. 4 in the ranking, thanks in part to the most laissez-faire pandemic-shutdown policies in the West. “There’s a big spread across the Sun Belt from Raleigh to Charlotte to Tampa and Jacksonville, and the big metro areas of Texas, on to Phoenix that are all in various respects growing fast,” said Cullum Clark, director of the Bush Institute-SMU Economic Growth Initiative. “It’s a distinctive model.”

States at the bottom of the list continued to suffer from reputations for high taxes, regulation and costs of living, with Washington at No. 46, followed by New Jersey, Illinois, New York and California, all unchanged in their rankings from previous years.

Despite some of the nation’s top talent pools and education systems, it will take a true revolution in their tax and regulatory structures to gain ground with CEOs -and move up from the basement.

May 30, 2022 – News Podcast


Rene Thomas Folse, JD, Ph.D. is the host for this edition which reports on the following news stories: Workers With Mild Symptoms of COVID May Not Be Protected by FEHA. Apportionment Mandatory When Disability Caused by Two CT Periods. Agoura Hills Physician Sentenced Under New Anti-Kickback Law. EDD Faces Another Wave of 47,000 Potentially Fraudulent Claims. Tustin Podiatrist Sentenced After Conviction for Treatment Fraud. Bay Area Rheumatologist Pays $1M For Using Not FDA Approved Drugs. WCIRB Reports Lowest Premium in Decades and Higher Combined Ratios. Vaccine Fail – Moderna Throws Away 30M Doses “Nobody Wants”. Drug Shortages Feared After Closure of Contaminated Irvine Plant. City of San Diego Comp Claims 17% Higher Than Similar Agencies.


Employer is Illegally Uninsured Despite “All States Endorsement” Policy

Ken Stabler sustained an industrial injury to multiple body parts while employed as a professional football player. He was employed by the Oakland Raiders, Houston Oilers, and New Orleans Saints during the cumulative trauma period.

Benefits were awarded against the Saints and Travelers. After Stabler passed away, Travelers and his estate settled the previously awarded benefits.

Travelers insured the Saints prior to Stabler’s last year of injurious exposure and they were held liable for his benefits pursuant to Labor Code section 5500.5.

Travelers alleged that the Saints were unlawfully uninsured during his last year of injurious exposure. The Saints allege that they were covered by North-West Insurance Company and by Horizon Insurance Company, but the Saints were unable to locate the alleged North-West policy and there is no North-West policy in evidence. North-West Insurance Company was liquidated by the Oregon Insurance Guaranty Association in 1999.

Travelers filed a Petition for Reimbursement seeking reimbursement of $87, 083.53 for benefits paid from the Saints, based on Labor Codes section 5500.5.

After a trial primarily focused on the issue of whether the Saints were unlawfully uninsured, the WCJ found that substantial evidence did not show that the Saints were covered by a workers’ compensation policy issued by North West. And that the Saints did have workers compensation coverage, which included coverage in California with First Horizon Insurance Company and thus the Saints were not unlawfully uninsured during the last year of injurious exposure.

Reconsideration was granted, and the WCAB panel found that the Saints were illegally uninsured and ordered the Saints to reimburse Travelers in the panel decision of Ken Stabler v Louisiana Saints et. al. ADJ7762424 (May 2022) .

Travelers contends that the First Horizon policy did not provide workers’ compensation coverage because First Horizon was not licensed by the California Department of Insurance to issue policies. Travelers also argues that by the terms of the First Horizon policy, including the “All States Endorsement,” the policy does not provide workers’ compensation insurance in any state except Louisiana.

Workers’ compensation insurance policies in California are subject to regulation by the Department of Insurance. All workers’ compensation policies must “contain a clause to the effect that the insurer will be directly and primarily liable to any proper claimant for payment of …compensation.”

First Horizon agreed to be directly and primarily responsible for providing benefits to applicants under the laws of the state of Louisiana. (“Coverage A”) Unlike “Coverage A,” the “All States Endorsement” is an agreement that Horizon will reimburse the employer for liability imposed on the employer under the workers’compensation laws of states other than Louisiana.

The Saints could obtain reimbursement from First Horizon for California claims but the insurance agreement does not require First Horizon to directly pay benefits to a California applicant.

The coverage provided for California claims is similar to an excess policy – First Horizon promises reimbursement not payment. Thus, the Saints did not secure the payment of compensation as required by Section 3700 and they were illegally uninsured.

Innovative Robotic Spine Implant Lab Opens in Carlsbad

Accelus is a privately held commercial stage medical technology company focused on accelerating the adoption of minimally invasive surgery (MIS) as the standard of care in surgical spine treatment. It has a portfolio of MIS spinal implants, leveraging its proprietary adaptive geometry technology, and a compact precision robotics platform.

The company is focused on improving procedures and outcomes, creating favorable economics, and providing broad accessibility across end markets, including ambulatory surgery centers.

Accelus is headquartered in Palm Beach Gardens, Florida, where its corporate offices, machine shop, biomechanical testing, quality, warehouse and distribution, as well as its Accelus Clinical Education (ACE) cadaver lab, is housed. Accelus’s second location in Boulder, CO, with its robotic and navigation R&D offices and lab, opened in late 2021.

Its third 5,722-square-foot Carlsbad California office opened in early 2022 and features the company’s second ACE surgical lab. The team in Carlsbad hosted their first surgical labs in late March 2022.

Accelus said it has developed a differentiated solution, combining innovative spinal implants with an affordable, easy-to-use robotic and navigation platform that creates broad accessibility by allowing surgeons to increase operative efficiencies with favorable physician and facility economics. This solution was designed to deliver improved clinical outcomes while creating immediate and meaningful cost reductions that delivers tangible benefits to providers, payers, and patients.

The company added that “Currently, the robotic market is the first-generation robotic entries, and like all first generation, you have a very kludgy, cumbersome, complex product offerings. And so, we really are coming in with something, that next generation that approximates the ergonomics in the workflow, that the current ORs are demanding.”

And the company just announced recent FDA approval of additions to it’s robotic spine surgery product lines.

On May 12, Accelus announced that it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its FlareHawk TiHawk11 Interbody Fusion System. TiHawk11 is the latest addition to Accelus’s flagship FlareHawk® portfolio of spinal fusion cages, which are now available in a larger footprint with titanium at the bony interface.

“These interbody cages feature multi-planar expansion, adaptive geometry, and open architecture designed to facilitate safer insertion and deployment-unique properties that can minimize subsidence and maximize fusion,” said Dr. Peter Derman, a minimally invasive and endoscopic spine surgeon at Texas Back Institute who was involved in the design of TiHawk11.

Per the FDA 510(k) document, the FlareHawk Interbody Fusion System is indicated for “spinal intervertebral body fusion with autogenous bone graft and/or allogeneic bone graft composed of cancellous and/or corticocancellous bone in skeletally mature individuals with degenerative disc disease at one or two contiguous levels from L2 to S1, following discectomy.”

And on May 20, the company announced that it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its Toro Lateral (Toro-L) Interbody Fusion System. Toro-L is a biplanar expandable lateral implant designed for a minimal insertion profile and maximum bone graft delivery directly through the inserter.

Toro-L features an insertion profile that is 14mm wide, expanding to the implant’s full width of either 21 or 24mm before further expanding to the surgeon’s desired height of up to 16mm. The implant has 3D-printed endplates, which have a roughened surface where the implant interfaces with bone due to the additive manufacturing process.

Earlier the company released it’s posterior screw line, the LineSider, and the Mongoose and the hyper-innovative Periscope screw, which is a telescoping pedicle screw.

Supreme Court – Missed-Break Premiums Are “Wages” With Penalties

Spectrum Security Services, Inc., provides secure custodial services to federal agencies. The company transports and guards prisoners and detainees who require outside medical attention or have other appointments outside custodial facilities.

Gustavo Naranjo was a guard for Spectrum. Naranjo was suspended and later fired after leaving his post to take a meal break, in violation of a Spectrum policy that required custodial employees to remain on duty during all meal breaks.

Naranjo filed a putative class action on behalf of Spectrum employees, alleging that Spectrum had violated state meal break requirements under the Labor Code and the applicable Industrial Welfare Commission (IWC) wage order. (Lab. Code, § 226.7; IWC wage order No. 4-2001, § 11.) The complaint sought an additional hour of pay – commonly referred to as “premium pay” – for each day on which Spectrum failed to provide employees a legally compliant meal break.

According to the complaint, Spectrum was required to report the premium pay on employees’ wage statements and timely provide the pay to employees upon their discharge or resignation, but had done neither. The complaint sought the damages and penalties prescribed by those statutes as well as prejudgment interest.

After a remand from the Court of Appeal (Naranjo I v. Spectrum Security Services, Inc. (2009) 172 Cal.App.4th 654) on several issues, the trial court certified a class for the meal break and related timely payment and wage statement claims and then held a trial in stages. The trial court entered judgment for the plaintiff class on the meal break and wage statement claims and awarded attorney fees and prejudgment interest at a rate of 10 percent.

Both sides appealed. The Court of Appeal affirmed the trial court’s determination that Spectrum had violated the meal break laws but reversed the court’s holding that a failure to pay meal break premiums could support claims under the wage statement and timely payment statutes. It also ordered the rate of prejudgment interest reduced from 10 to 7 percent. (Naranjo II v. Spectrum Security Services, Inc. (2019) 40 Cal.App.5th 444).

The California Supreme Court disagreed with the Court of Appeal, decision in Naranjo II, and concluded that the extra pay constitutes wages subject to the same timing and reporting rules as other forms of compensation for work, but agreed that the 7 percent default rate set by the state Constitution applies. (See Cal. Const., art. XV, § 1.) in its opinion in Naranjo III v Spectrum Security Services Inc. (2022) S258966.

California’s meal and rest break requirements date back to 1916 and 1932, respectively, when the newly created IWC included the requirements in a series of wage orders. For most of the century following the promulgation of the break requirements, the law offered limited tools for enforcement: “The only remedy available to employees . . . was injunctive relief aimed at preventing future abuse.”

In 2000, concerned that the injunctive remedy had not given employers enough incentive to comply with the law, the IWC added a new monetary remedy. Employees denied a meal or rest break on a given day would be due “one (1) hour of pay at the employee’s regular rate of compensation.” The Legislature followed suit the same year by enacting Labor Code section 226.7 providing essentially the same remedy.

An employee who remains on duty during lunch is providing the employer services; so too the employee who works without relief past the point when permission to stop to eat or rest was legally required. Section 226.7 reflects a determination that work in such circumstances is worth more – or should cost the employer more – than other work, and so requires payment of a premium. In this respect, missed-break premium pay is comparable to other forms of payment for working under conditions of hardship.

The extra pay thus constitutes wages subject to the same timing and reporting rules as other forms of compensation for work. When an employment relationship comes to an end, the Labor Code requires employers to promptly pay any unpaid wages to the departing employee.

Palo-Alto “Pay As You Go” Comp Insurance Grows 20% Monthly

We’ve seen a boom in the last several years around tech built for front-line, service, manual, and other workforces typically paid on an hourly wage. In one of the latest developments, Hourly.io — which has built an app that tracks working hours, generates payroll, and then calculates and assigns workers compensation insurance to individuals based on that — has closed in on $27 million in funding. Hourly.io is based in Palo Alto.

And according to the story on Yahoo News, Hourly now has some 1,000 customers – all in the state of California – in areas like construction, home services, accounting and retail, and will continue enhancing its product to target more verticals.

So what is Hourly going to do with the new $27 million in funding? “We’re planning to expand our insurtech platform outside the state of California and make it available to one-third of the U.S. population by the end of 2023. This is part of our larger vision to completely change the workers’ comp game – for good.”

Hourly says it is the first platform that lets employers run payroll, track time and attendance, and manage workers’ comp insurance premiums in one place. Why is this a good idea? “Basically by directly linking payroll and workers’ comp, premiums are based on your actual payroll – not a guess. Since we have a pay-as-you-go model, business owners only pay for the coverage they use every pay period.”

Hourly’s own birth came out of its founder’s own experiences. When Tom Sagi initially moved to the U.S., his first work experience was to help out in his family’s construction firm, where he was tasked with any and all odd jobs relating to admin and more. One of those involved handling payroll.

“We had 30-40 hourly employees, and I helped with everything on the business side including HR,” he recalled. “Every Friday the workers were paid, so I spent every Thursday collecting time cards in the field.” Working out workers comp insurance and payouts, he added, was a mandatory aspect of that, given the labor work involved.

“It was a headache to deal with,” he said. “What really should have only taken minutes to do took at least a day.” That was the impetus for building a platform to automate the process, from tracking time worked through to calculating payment and workers comp based on that.

Hourly’s rise is part of a bigger shift seen in tech built for the world of work. For the longest time, a lot of the most interesting innovations have been focused on so-called “knowledge workers” — those who typically get salaries, use computers and desks, and might well be paid much higher overall.

Hourly workers, however, have come into focus more recently for a number of reasons. Perhaps the strongest of these has been the communications and productivity evolutions arising from the ubiquity of smartphones.

Hourly.io is far from being the only startup tackling this general market, nor the specific task of fixing the very basic problems of organizing and paying these workers. Others that have raised money to grow their businesses include team management app Homebase; Fountain for sourcing and hiring hourly workers; another platform for matching shift workers to employers, Shiftsmart; Wagestream, a financial ‘super app’ for waged workers; When I Work to manage shift scheduling; and many others.

Like others in the insurance technology space, there remains a lot of room for automating and improving processes that have been barely touched for years. It also gives the company an interesting springboard to working across a wider range of products and services targeting waged workers, an opportunity those other startups are also tackling.

Hourly says that its revenues — based on two service tiers with varying levels of features for $40 plus $6/worker/month or $60 plus $10/worker/month — have been growing 20% month-over-month although it does not disclose actual revenue numbers.