Governing for Results 13 - Washington State Digital Archives

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Department of Labor and Industries Infractions Collections Every year, Department of Labor and Industries (L&I) forfeits hundreds of thousands of dollars in uncollected fines levied against Washington contractors and plumbers who have been cited for violating contractor and plumbing laws and requirements. Historically, past-due infraction payments (fines) were turned over to private collection agencies; these agencies typically collected about 3 percent of the accounts receivable. This resulted in L&I forfeiting significant penalty revenue, and left many unregistered contractors with the perception that they could get away without paying penalties because the department would not pursue them. Additionally, Specialty Compliance Services morale suffered as staff questioned the worth of its work when it seemed like little effort was made to collect the assessed penalties. A cross-divisional project team met and decided to utilize an existing internal collections unit housed in the agency’s Insurance Services Division to collect the overdue penalties. A 60-day pilot project was launched. Results ★ In the first 60 days, a total of $6,000 was collected. ★ Of 11 timely referrals, 64 percent (7) resulted in payment or resolution of the account. ★ Of 64 debts in the 1-to-3 year-old category, 8 percent (5) resulted in payment or resolution of the account. Team Name: Region 4 Collections Team Members: Carleen Anderson, Sam Haigh, James Kreusch, Paula Kerr, Suzette Wells, Candy Gleason, Goldie Butler, Denise Whitcraft, Maureen Strand, Jane Schermerhorn CONTACT: Candy Gleason, (360) 902-4700 45
Department of Labor and Industries Department Identifies Non-Compliant Contractors Labor and Industries depends on local building departments to verify that contractors are registered with the agency before granting building permits. These status checks were not always occurring. And, even if a contractor is registered, building departments don't have the ability to see if contractors need to pay industrial insurance premiums. Many contractors are not paying these premiums for workers. Aberdeen's regional office began working with local counties and municipalities in Grays Harbor and Pacific County. Each month, they report on the building permits granted. Each contractor is checked for registration and reporting of worker hours. Cross-checks also are done with the Department of Employment Security. Compliance inspectors check the contractor's site if there are any questions. If no worker hours are reported, the case is referred to field auditors for investigation or audit. In just two months, the following results were achieved from the Aberdeen office. Results ★ 46 contractors were referred to Field Auditors; 32 contractors were referred to Compliance Inspectors. ★ Six accounts were opened with anticipated premiums of $49,000 annually. ★ Three $1,000 infractions were issued for unlicensed/suspended contractors. ★ Two safety violations were referred to the agency's Safety Compliance section. ★ 15 accounts will be audited. ★ Estimate 30 new accounts a year will pay premiums of more than $244,000. Team Name: Regional Services - Aberdeen Service Location Team Members: Sharon Vlastelica, Linda Hathway, Linda Beerbower, Steve Dalthorp, Paula Kerr, Carolyn Randall CONTACT: Carolyn Randall, (360) 533-8222 46
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Governing for Results 13 - Washington State Digital Archives

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