NY Scaffold Law Targeted in Staged Injury Scheme: What It Means for Construction Accident Claims

Construction sites, by their very nature, are fraught with potential hazards. In New York, Labor Law Section 240, also known as the Scaffold Law, provides unique protections for construction workers injured in gravity-related accidents. However, recent reports of staged injury schemes targeting the NY Scaffold Law are raising concerns about fraud and its impact on legitimate construction accident claims. These schemes not only undermine the integrity of the legal system but also threaten to drive up insurance costs for contractors and property owners, potentially impacting project costs and housing affordability.

Understanding the NY Scaffold Law

New York Labor Law Section 240, enacted in 1885, is designed to protect construction workers from elevation-related hazards. It places “absolute liability” on property owners and contractors for injuries sustained by workers due to inadequate safety measures, such as scaffolding, ladders, hoists, and other elevated equipment. This means that if a worker is injured in a fall or struck by a falling object, the owner or contractor is liable, regardless of fault.

The law states that “all contractors and owners and their agents… shall furnish or erect… scaffolding, hoists, stays, ladders, slings, hangers, blocks, pulleys, braces, irons, ropes, and other devices which shall be so constructed, placed and operated as to give proper protection to a person so employed.”

Unlike typical personal injury cases, the Scaffold Law allows workers to pursue compensation when safety violations played a role in their injuries. Injured workers may recover damages (financial compensation) for medical expenses, lost wages, and pain and suffering without the hurdles of comparative negligence.

The Rise of Staged Injury Schemes

In recent years, there has been a growing concern about the exploitation of the NY Scaffold Law through staged injury schemes. These schemes involve individuals who intentionally fake or exaggerate injuries on construction sites to file fraudulent workers’ compensation and personal injury claims.

Construction industry advocates contend the law increasingly is being exploited by unscrupulous people, who, often working in concert with medical providers and law firms, file false lawsuits from staged accidents in which workers pretend to be injured on job sites, generally in scenarios involving ladders or scaffolds.

These schemes often involve:

Recruitment of Claimants: “Runners” target construction workers, offering financial incentives to participate in staged accidents. Often, the workers are down on their luck or a vulnerable segment of our society desperate for money to make ends meet.
Staging the Accident: Workers are placed at targeted construction sites and purposefully stage an “accident.” The accidents rarely have any witnesses, despite occurring in the middle of busy work environments.
Medical Provider Collusion: Claimants are referred to participating medical providers who inflate injuries and provide unnecessary or excessive treatments. These providers create fraudulent medical documentation to justify higher settlement values.
Legal Facilitation: Some law firms allegedly recruit and groom people, in some cases non-English speaking immigrants, to stage construction accidents and file fraudulent lawsuits and workers’ compensation claims.

Impact on Construction Accident Claims

The prevalence of staged injury schemes has several significant implications for legitimate construction accident claims:

Increased Scrutiny: Legitimate claims may face increased scrutiny and skepticism due to the association with fraudulent activities.
Higher Insurance Costs: Insurance companies may raise premiums to offset the costs of fraudulent claims, impacting contractors and property owners. Some large contractors have seen a 200%-300% increase in Scaffold Law litigation against them in the past two to three years.
Erosion of Trust: The schemes can erode trust in the legal system and make it more difficult for genuinely injured workers to receive fair compensation.
Delays in Claim Resolution: Investigations into potential fraud can delay the resolution of legitimate claims, causing financial hardship for injured workers.

Recent Legal Actions and Legislative Efforts

Several recent lawsuits and legislative efforts aim to combat staged injury schemes and protect the integrity of the NY Scaffold Law:

RICO Lawsuits: Construction industry captive insurers and contractors have filed lawsuits alleging a massive New York fraud scheme involving staged workplace accidents and bogus workers’ compensation and personal injury lawsuits backed by complicit lawyers and medical providers. The suits target personal injury lawyers and law firms along with their affiliated runners, and their clients who the suit alleges are connected through personal ties and family relationships.
Proposed Legislation: A bill was introduced in the New York legislature proposing to make staging a construction site accident a Class E felony. This proposed legislation is key to halting the rampant epidemic of fraudulent claims that threatens to cripple New York City on multiple levels.
Increased Enforcement: Increased inspections and stricter compliance with safety laws have been implemented to reduce accidents and deter fraud.

What This Means for Construction Workers

If you’ve been injured in a construction accident, it’s crucial to understand your rights and take steps to protect your claim:

Seek Medical Attention: Obtain prompt medical treatment and document all injuries and medical care.
Report the Accident: Report the accident to your employer and ensure an accurate record is created.
Gather Evidence: Collect any evidence related to the accident, such as photos, witness statements, and safety reports.
Consult an Attorney: Contact an experienced construction accident attorney to evaluate your claim and advise you on your legal options.

Advice for Construction Workers

Prioritize Safety: Always follow safety protocols and use provided safety equipment.
Report Unsafe Conditions: Report any unsafe working conditions to your supervisor or employer.
Be Aware of Suspicious Activity: Be vigilant for any suspicious activity or pressure to participate in questionable practices.
Know Your Rights: Understand your rights under the NY Scaffold Law and workers’ compensation laws.

The Importance of Legal Representation

Navigating the complexities of construction accident claims, especially in light of potential fraud, requires the expertise of a qualified attorney. An attorney can:

Investigate the Accident: Conduct a thorough investigation to determine the cause of the accident and identify liable parties.
Gather Evidence: Collect and preserve evidence to support your claim.
Negotiate with Insurance Companies: Negotiate with insurance companies to reach a fair settlement.
Litigate Your Case: Represent you in court if a fair settlement cannot be reached.

Conclusion

The NY Scaffold Law provides vital protections for construction workers injured in gravity-related accidents. However, the rise of staged injury schemes threatens to undermine the law’s purpose and impact legitimate claims. By understanding the law, being aware of potential fraud, and seeking legal representation when necessary, construction workers can protect their rights and ensure they receive the compensation they deserve.