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Temp workers scam employers

A Korean business owner reports abuse at the hands of a temporary worker who pretended to be sick and demanded money from the employee for medical expenses before a return to work. Instead of using the money as promised, the temp kept the cash and never returned. The employee knew that his boss had not registered with NY's Workers' Compensation, and was thus able to take advantage of the situation. Many Korean business owners find themselves in this predicament.

Mr. A, who manages a Korean construction company in Queens, met a Hispanic worker standing in front of a supermarket on Northern Blvd. in Flushing; the worker was looking for work. Mr. A promised him $100 for a day's work, and took him in his car to a construction site in Manhattan. Mr. A was pleased to find a worker. But after only a half hour at work, the day laborer came to Mr. A, saying he was sick and had fallen. The Korean manager was concerned, and felt sympathy toward the man, and gave him $100 for the day, as promised. He even gave him some extra cash for a taxi, urging the man to go to a hospital and get himself checked out.

But the worker did not leave. When Mr. A asked him why, the man replied that he did not have enough money to cover the costs of the examination and treatment at the hospital; however, he said, if Mr. A gave him some more money, he would go away and not make any trouble for the company. Hearing this, Mr. A sensed that this was a scam.

Unfortunately, the manager was trapped in a situation more or less of his own making: he had not filed with Worker's Compensation, and did not have insurance for his workers. He did not want to be involved in an investigation by labor authorities, and thought that by paying the man he could settle the issue for the day. He still believed the man would return to work the next day. So he paid the worker an additional $100. But the man never returned to work and Mr. A never saw him again.

Analysts say that day laborers frequently watch for the chance to trick employers out of funds. These days, many Korean owners are being targeted by such scams because the majority of them do not have Workers' Compensation. Although the number reported of such scams is rising, but there is no real knowledge of the extent of the problem since many owners are hesitant to step forward.

"Day laborers who cannot find other employment are just trying to get money for nothing. They are quite bold in their demands. When this man kept refusing to go to the hospital I thought he was lying, but I was so busy and also afraid of a compliance suit that I swallowed the loss and simply paid him what he wanted."

Mr. Haeng-bo Kim, who researches labor standards acts for the Department of Labor in New York State, advises, "If a day laborer claims to be ill, the employer should bring him to a hospital. No matter how busy the work schedule, the employee should receive medical attention from a doctor. The employer should receive the doctor's diagnosis and record of treatment. This way, the employer can later document whether the worker's illness had anything to do with his employment or the work environment. An employer has responsibility for a worker's medical costs only under certain conditions."

Mr. Kim also advises that the hiring of day laborers is not illegal, but the employer must pay at least minimum wage and keep accurate records of hours worked and amounts paid. There needs to be a receipt for wages paid as well. In Mr. A's case, he noted that since the worker did not uphold his promise of hours to be worked, the employer was not obliged to pay out the full amount for the day, despite the worker's claim of sickness.

 

In briefs section of Edition 394 15 October 2009