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Handyman Insurance: USDOL Targeting H-1B Pay/Benefits Compliance

Friday, Jan. 7th 2011 6:06 AM

The US Labor Department is aggressively investigating compliance with the wage-rate and benefits commitments employers must make in an H-1B Labor Condition Application (LCA). These investigations are usually triggered when an H-1B employee complains that the employer failed to pay the LCA wage.

The H-1B program allows foreign nationals to work in the US in professional or specialty jobs.  However, the employer must attest, among other things, that it will:

◊   Pay the H-1B employee at least the prevailing wage set by DOL based upon job duties and the employment location, and

◊   Offer the foreign worker benefits comparable to those offered to US workers in the same job classification.

DOL is taking these investigations very seriously and is assessing significant liability.  For example, under a December 2010 consent order, a software consulting company agreed to pay over $638,000 in back wages and interest for LCA violations.  The company and the owner also agreed to pay more than $126,000 in civil money penalties and interest for failing to provide the required LCA notice at each work site and for seeking a penalty from H-1B employees for terminating their employment early.  The company will be debarred for a year from participating in the H-1B program.

During an investigation, DOL reviews information such as:

•   The contents of the LCA itself,

•   A statement of how the wage rate was set,

•   Documentation showing how the prevailing wage was established,

•   The original notices posted advising workers about the LCA filing,

•   A summary of the benefits offered to US workers in the same occupation,

•   Payroll records and dates of employment for the H-1B employee,

•   A copy of the H-1B petition filed with the US Citizenship and Immigration Services (USCIS),

•   Evidence that the employer notified USCIS if the H-1B employment was terminated prior to the end of the authorized period and that the LCA was withdrawn, and

•   The current or last-known address and contact information for all H-1B employees.

The investigation generally includes interviews with management officials and H-1B employees.

DOL’s main goals are (i) to determine whether the employer paid each H-1B employee the LCA wage for the period the LCA remained in effect (liability for not doing so can continue even after the employee was no longer employed but the LCA was not withdrawn); and (ii) to ensure that H-1B employees’ wages were not docked when they were ready, willing, and able to work but the employer did not permit them to do so.  If the investigator finds that the employer is in violation, DOL normally assesses liability for back-pay, any benefits shortfalls, interest, and civil money penalties.  DOL might also insist upon monitoring and auditing the company’s compliance with H-1B requirements.  In serious cases, DOL might debar the employer from using the H-1B program. Read more about USDOL, USCIS, and Immigration and Customs Enforcement audits in the January 2011 edition of our Labor Letter.

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Insurance might not be the first thing someone thinks about when running a business, but it should be an important consideration.   Handyman insurance is another requirement if you are thinking about starting a handyman business.  This website provides important insurance information on Handyman Insurance Coverage and quotes.

Handyman Insurance Coverage

Handyman insurance includes several types of coverage; each one offers a specific kind of protection for your business.  

(Handyman Insurance ) Commercial Auto: Covers a business's owned, no owned, and hired autos against liability and physical damage losses. 

Handyman Workers Compensation:  If your business as a Handyman employs any staff (including part-time, trainees or sub-contractors), Employers liability insurance cover is a legal requirement.  Employers liability insurance provides protection against your legal liabilities to pay compensation in respect of injury sustained by your employees in the course of your business as a Handyman.  (Handyman Insurance) Workers Compensation: Provides coverage for an employer's responsibility in the event of a work-related injury or illness.   Employers Liability Insurance for handyman work: This type of insurance would cover payment of legal fees and damages in the event that an employee was injured or killed while doing work for you. 

Tradesman Insurance for handymen: This is a package of several different kinds of cover for handymen, making up one policy that meets all your insurance needs.

Public Liability Insurance for handyman work: This type of insurance would cover you if your business activities caused injury or death to a member of the public.

Handyman General Liability - Commercial jobs will require you to have general liability coverage of $1,000,000 to $2,000,000 prior to being hired (not to mention that you protect your assets if something goes wrong on the job).

Products liability insurance for Handymen - Products liability insurance provides protection against your legal liability, compensation costs and expenses following injury or damage by goods that you have sold, supplied, repaired, tested or delivered in connection with your business as a Handyman.  Products Liability insurance for Handymen at 1,000,000 with the option to increase to 2,000,000 up to 5,000,000 or more.  Public Liability insurance cover provides protection against your legal liability for injury to third parties and damage to their property in connection with your business as a Handyman.

Professional Indemnity Insurance for handyman work: This covers you against any mistakes you might make  including bad advice you or your staff might give  that ends up costing your clients money, and leading them to take legal action against you.

(Handyman Insurance ) Umbrella Coverage: A broader form of coverage that extends the limits of liability found in a base policy form. 

Income Protection Insurance - If the essential person should be unable to work for a period of time, this handyman insurance helps to cover the loss of business as a result of the illness or injury.  Having sufficient income protection insurance is also a worth while consideration, if you were to fall off a step ladder or hurt your back and couldnt work, accident, sickness and unemployment insurance could help you to pay for some of your monthly bills in the event of you not being able to work.

The Handyman Insurance Program gives our policyholder comprehensive coverage for their handyman businesses, and the program is designed for Handymen who: Are hired to do a variety of miscellaneous work that would be found in a residential household environment;

Please note that standard home owner's insurance will most likely not cover business assets, and may VOID your home insurance coverage.  If your business is home-based, do you need more liability coverage than your home insurance policy covers. 

The Handyman program gives our policyholder comprehensive coverage for their handyman businesses, and the program is designed for Handymen.

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