Kingsbridge Heights Owner Helen Sieger Arrested and Charged with Felony
Helen Sieger, the owner and operator of Kingsbridge Heights Nursing Home in the Bronx was arrested on Thursday for failing to provide workers' compensation insurance for hundreds of 1199SEIU members. The workers have been on an unfair labor practices strike since February20, 2008.
New York State Attorney General Andrew Cuomo announced the arrest, saying that Sieger failed to have workers' compensation coverage for over one year, from May 31, 2007 to June 26, 2008.
The arrest is the first in New York State under a new workers' compensation law, which became effective on April 12, 2007 and makes it a felony for employers to fail to have this insurance for their workers. Under the new law, any employer of more than five people who fails to cover their employees through this insurance is committing a class "E" felony, punishable by up to four years in prison. Under the previous law, the crime was a misdemeanor.
In the period during which Sieger's business was not covered, six employees claimed injuries that went to the Workers' Compensation Board. On June 19, 2008, the New York State Workers' Compensation Board issued a "stop work" order to take effect on June 30, 2008, due to Sieger's failure to obtain workers' compensation insurance. The "stop work" order would have involved the immediate closing of the nursing home and emergency removal of the patients. After being threatened with these actions, Sieger obtained workers' compensation coverage on June 27, 2008. Like other types of insurance, however, workers' compensation is not retroactive, and Sieger is still accused of violating the law by neglecting to have this insurance.
"Today's arrest should send a strong message: Employers who think they can wait until they get caught before getting workers' compensation insurance are in for a rude awakening," said Attorney General Cuomo. “Any employer trying to cheat workers and the State by failing to have workers' compensation insurance will be held accountable by my office. Providing protection for workers injured on the job is the law, and we all share the cost when employers ignore taking care of their employees."
New York State Workers' Compensation Board Chair Zachary Weiss said, "When Kingsbridge Heights Rehabilitation Center failed to cover its employees for Workers Compensation benefits, it put their physical and fiscal health at risk. This charge serves as an example of the importance New York State places on employee protection and Workers' Compensation."
The arrest is only one of several legal problems that Sieger faces. The National Labor Relations Board (NLRB) is seeking a temporary injunction in federal court. On May 30, the Board filed charges against the nursing home. that said the nursing home failed to make payments to the workers’ benefit fund, conducted surveillance of union members and failed to abide by a contract agreed upon with the union. In a matter of days, a federal judge is expected to rule and Sieger could be forced to resume making payments to the workers health fund, among other measures. Refusal on her part could also result in her being jailed.