Why is the WA. State Dept. of L&I allowed to Break, Bend and Ignore the Laws?

Exposing the Washington State Government of illegal issuance of the Preferred Worker Program
(WAC 296.16.010) relating to the Industrial Insurance Act



The Preferred Worker Program was enacted by the Washington State Legislation to aid injured workers in finding employment by enticing the prospective employer with the opportunity to not pay into the funds for industrial insurance (a small amount of $0.07 per hour rather than the normal rate). It also allows the employer, if the approved worker is injured again or re-aggravates the previous injury, to not be assesed any risk factors for a period of 36 months from the original date of issuance to the worker.

It has been in effect since Jan. 1, 1981 and after the first 3-4 years of the program a single individual was issuing those program "cards" at a rate of approximately 1.4 per hour (not taking away for holidays, sick days or vacations) until sometime in 2003 when the Dept. of L&I claims that in an internal audit they found that this program was being miss-handled.

The qualifications to be eligible for the program are:

1. The worker must have an approved claim.
2. The worker is unable to return to the employment of injury.
3. The worker is recommended for the program by either the claims manager or the workers VOC (Vocational Counselor).
4. The worker must be seeking work.

It was discovered and revealed in 2001 that the Dept. was intentionally issuing this program outside of these requirements. To issue 1.4 "cards" per hour is impossible under the needs that the worker first be injured / diseased, as determined by their Physician. Now starting the "clock" on this procedure, the Dept. must receive the claim, determine if it is an eligible claim for benefits, or denied (typically a 4 to 6 week process). The worker will now be assigned a VOC and the VOC must make an assessment if the worker is eligible for the Program (unable to return to the employment of incident). This worker must be recommended for the program which is another "in house" process of paper work and if it is properly determined that the worker is eligible, then the individual that was issuing these "cards" needs to complete the paper work and assign it a case number with-in the Preferred Worker Program Files.

The proof of the illegal issuance has been on the internet since approx. late 2001.

The Dept. of L&I has known of these documents and the illegal issuance of the program since it's discover in 2001.

The Attorney Generals Office has known and verbally replied to a member of the Dept. of L&I "you have been doing it this way for over 8 years and we don't have a problem with it". The AG's Office has even put in writing that they see nothing wrong with how the Dept. was administering this program.

This has even been brought before the Governor, Gary Locke. Face to face in Kirkland at an Overpass Dedication that he spoke at. As well that office is in constant contact regarding the acts of the Dept. of L&I by the people of Citizens Representing Citizens.

The Dept. of L&I has now, as stated earlier, admitted that they were miss-administering the Preferred Worker Program.

E-mail from the Washington State Labor Council:

"Kirt,
I spoke with Bob malooly (assistant director, Insurance Services Division) and he indicated that they are fully aware of the abuses that occurred in the PWP and that they have put into place safeguards that will avoid these abuses in the future. If you are aware of a recent abuse, plz bring it to my attention. Thanks, for all the information you brought to us. I believe they are straightening these abuses out at the Dept.
Robby"

But what happens to the citizens of the State of Washington if the Dept. of L&I finds that they have acted against the rules, laws, of the Industrial Insurance Act?

Felony Fraud.

Why do they (The Dept. of L&I) cause the honest to be burdened by their admitted illegal acts:

"We want a level playing field so that contractors who contribute to the fund and pay their fair share aren't at a financial disadvantage," said Paradis. "We are determined to make sure that employers are meeting their obligations to the workers' compensation system by accurately reporting worker hours and paying their premiums." Reuel Paradis, Regional Administrator, Central Washington.

"We will not let dishonest employers shift their costs of workers' compensation claims to the honest employers and their employees." Robert Malooly, assistant director, Insurance Services Division.

"Our goal is to make the industry safer and to eliminate any unfair competitive advantage some contractors gain by violating the law," said L&I Director Paul Trause.

yet go free to continue the abuse of the injured worker?

Good Luck in your cause,

Kirt Gardiner
Citizens Representing Citizens