Personnel Policy Committee
Meeting

Wednesday, May 24, 1995
Ramada Inn, Woburn, MA

The Northern Textile Association Personnel Policy Committee met on May 24, 1995 at the Ramada Inn, Woburn, MA. In attendance were Linda J. Swanson, American Fiber & Finishing; Brenda Perry, Cascade Woolen Mill, Inc.; Sandee Muzaca, Crown Yarn Dye Co., Inc.; Mickie Richardson, Homestead Industries, Inc.; Dan Brown, L. W. Packard and Co.; Leslie Dietrich, Raffi & Swanson; Rita McCauley, Warwick Management, Inc.; John Rushlow, Alton Operating Company; Lexy Paskevich, Dorr Woolen Company; and David Trumbull, Northern Textile Association.

Jim Collins of East Coast Investigative Services addressed the issues of workers’ compensation insurance fraud and pre-employment verification. There follows some notes on his presentation:

In Massachusetts, private investigators must be licensed. To be licensed one must have 3 years of investigative experience, take an oral exam with the Dept. of Public Safety, and pay a first year licensing fee of $1200 with an annual renew costing up to $600.

Private investigators typically charge $35 to $70 per hour plus mileage. Mr. Collins charges $45 plus mileage. In Massachusetts a private investigator does not have to reveal the name of his client.

Mr. Collins’ company offers three pre-employment screening plans at the following prices: $150, $200, and $250. He recommended the $200 package as the best deal for most employers. This plan includes: alias check, newspaper scan, social security number verification, state criminal records check, corporate affiliation check, driving history, federal bankruptcy check, education verification, federal civil case check, prior employment verification, federal criminal case check, verification of references, and verification of residency. The $250 plan includes a neighborhood investigation. An investigation takes about three days.

Mr. Collins suggested having an attorney look over your employment application. He also suggested including on the application a statement indicating that making a fraudulent statement on the employment application is grounds for dismissal. Mr. Collins discussed the “reasonable care” standard in negligent hiring.

Mr. Collins showed surveillance videos he had used in exposing fraudulent workers’ compensation cases. He discussed one case where the insurance company was prepared to offer $3.5 million to settle out of court to avail a probable $5 million court judgment; an investigation costing about $4,000 exposed the case to be fraudulent and the company paid nothing to the claimant. It is easy to disprove a fraudulent claim if the claimant makes an absolute statement such as “I never walk without the cane,” etc.; you just have to catch them on tape once walking without the cane and their credibility is reduced. Difficult cases involve hard-to-find claimants; people using a relative’s address or a post office box to receive the workers’ comp. check.

Mr. Collins recommended that personnel offices wanting to do their own investigations purchase “The Guide to Background Investigations” available for about $100. He also recommended the John Reid Company of Chicago (312-876-1600) which does training in how to conduct an integrity interview.

Lexy Paskevich reported on Dorr Woolen Company’s recent labor contract settlement which was achieved following a two-day strike.

Sandee Muzaca reported that in Massachusetts the 8 weeks of mandated pregnancy leave can be in addition to the 12 weeks FMLA for pregnancy for a total of 20 weeks.

Possible future topics: Violence in the workplace (Possible OSHA rule). Workplace substance abuse. Performance review sheets.

Business conditions were reported to have been improved, good, but uncertain about the future.

The next meeting has been set for August 16, 1995. It will include a cruise at the Isle of Shoals, Portsmouth, NH (You will receive more information on this outing closer to the date). At that meeting we will discuss performance review sheets. Please submit to the NTA office a copy of the performance review form used at you company by August 1st for discussion at the August 16 meeting.

Respectfully submitted,



David Trumbull
Member Services

NOTE: If you have not already responded to the Personal Protective Equipment Cost Survey and care to receive a copy of the results please respond by June 30th. Only those companies that participate in the survey will receive the results. I enclose a copy of the survey instrument.