Workplace Injury at Adidas/Kanye Facility Leads to $45,000 OSHA Fine – Workers’ Comp Rights Explained

• Nov 19, 2018
• Blog
• Michael Burgis & Associates, P.C

Following an incident in March, the California Division of Occupational Safety and Health (Cal/OSHA) launched an investigation, the outcome of which led to the proposal of a substantial fine. The business is the design studio of Adidas America Inc., affiliated with Kanye West.

Cal/OSHA determined that the company failed to adequately protect workers at the facility, which gave rise to serious workplace injuries.

How the Accident Happened

According to the official accident report, three employees were moving a machine used in the manufacturing of shoe soles.

The workers used a pallet jack to assist with the heavy load. Although pallet jacks are not designed for safe use on inclined surfaces, they were pushed down a slope, causing the equipment to tip over.

The machine fell onto one worker, crushing his left hand and foot. This tragic incident illustrates how equipment misuse, inadequate training, and a lack of supervision create high-risk environments for employees.

Cal/OSHA’s Findings: Employer Safety Failures

Cal/OSHA’s investigation revealed several violations:

1. The employer failed to establish an effective Injury and Illness Prevention Program (IIPP) as required under Title 8 of the California Code of Regulations.
2. Workers received no training in the safe use of pallet trucks.
3. Supervisors did not intervene, despite clear manufacturer warnings against using pallet jacks on slopes.

OSHA Fine: $45,000

Cal/OSHA issued a proposed penalty of $45,000.

However, to understand the severity, we must examine how OSHA classifies violations.

• Serious Violation: Where there is a substantial probability of death or serious harm (likely classification here).
• General Violation: Safety standard violated, but unlikely to cause serious injury.
• Willful Violation: Intentional disregard for safety regulations.
• Repeat Violation: Same employer cited for a similar violation within five years.

The Injuries: Crushing Trauma and Long-Term Effects

The machine caused crushing injuries to the worker’s hand and foot. Such injuries often involve:

• Metatarsal fractures and broken bones.
• Tendon and ligament damage, leading to reduced mobility.
• Nerve damage, resulting in chronic pain or loss of sensation.
• Risk of permanent disability, affecting long-term earning capacity.

Even with surgery and rehabilitation, some victims experience permanent impairment ratings that qualify them for Permanent Disability (PD) benefits under workers’ compensation law.

Workers’ Compensation Benefits in California

While OSHA fines punish employers, compensation for injured workers comes from the California Workers’ Compensation system.

Benefits Available:

• Medical Care: Full coverage for surgeries, rehabilitation, and prescriptions.
• Temporary Disability (TD): Wage replacement while unable to work.
• Permanent Disability (PD): Long-term benefits if full recovery is not possible.
• Supplemental Job Displacement Benefit (SJDB): A $6,000 retraining voucher if you cannot return to your job.
• Death Benefits: Paid to dependents if a worker dies from a job-related injury.

The Workers’ Compensation Appeals Board (WCAB)

When disputes arise, such as denied benefits or low disability ratings, the case may proceed to the Workers’ Compensation Appeals Board (WCAB).

• Structure: WCAB is a judicial body with district offices throughout California.
• Function: Resolves disputes between injured workers, employers, and insurers.
• Process: Workers can file for hearings, appeals, and reconsiderations if their benefits are unfairly reduced or denied.

Understanding WCAB is critical for workers navigating complex cases where employers or insurers contest claims.

Historical Context: OSHA Fines in Manufacturing

The Adidas case is not an isolated event. Between 2018–2022, Cal/OSHA issued thousands of citations across California manufacturing facilities for:

• Improper equipment handling.
• Lack of safety training.
• Failure to maintain IIPPs.

These fines, while financially significant, rarely match the human cost of the injuries they fail to prevent.

By referencing Adidas—a globally recognized brand—this case underscores that no company is immune to workplace safety failures.

Employer Responsibilities Under California Law

California employers are legally obligated to:

• Maintain a written Injury and Illness Prevention Program (IIPP).
• Provide safety training specific to the equipment used on site.
• Conduct hazard assessments and correct unsafe practices.
• Report serious injuries to Cal/OSHA within 8 hours.
• Keep proper injury and illness records under OSHA Form 300.

Failure in any of these areas not only results in OSHA penalties but also increases exposure to workers’ comp claims and potential civil liability.

Third-Party Liability: Beyond Workers’ Comp

While workers’ compensation is typically the exclusive remedy, some cases allow additional legal action:

• If the equipment manufacturer failed to provide adequate warnings.
• If a third-party contractor contributed to unsafe conditions.
• If the injury resulted from defective machinery.

These claims can provide compensation for pain and suffering, which workers’ comp does not cover.

Why Legal Help Is Essential

Although Cal/OSHA identified employer violations, navigating workers’ compensation requires legal expertise.

At Michael Burgis & Associates, we help injured workers:

• File and manage workers’ compensation claims.
• Obtain second medical opinions and Qualified Medical Evaluator (QME) assessments.
• Appeal denied claims before the WCAB.
• Pursue third-party liability lawsuits when applicable.
• Maximize settlements for permanent disability and long-term injuries.

We operate on a no-win, no-fee basis, ensuring access to justice without upfront costs.

Expanded Frequently Asked Questions (FAQs)

1. What does a Cal/OSHA fine mean for employees?

The fine penalizes the employer but does not directly compensate injured workers. Your recovery comes through the workers’ compensation system.

2. Can OSHA violations strengthen my workers’ comp claim?

Yes. While comp benefits are no-fault, OSHA findings can provide powerful evidence if your employer disputes your claim.

3. What is an IIPP, and why is it important?

An Injury and Illness Prevention Program is a written plan outlining workplace safety measures. Employers must identify hazards, train workers, and implement corrective actions.

4. How long do I have to file a workers’ comp claim in California?

You must report your injury to your employer within 30 days and generally have one year to file a formal claim.

5. Can I be fired after reporting an OSHA violation?

No. Retaliation for reporting safety hazards or filing a claim is illegal under California law.

6. How much is the average settlement for a hand or foot crushing injury?

Settlements vary widely but often depend on impairment rating, wages, and future earning capacity. Severe crushing injuries can result in six-figure settlements.

Get Legal Help Today

If you’ve been injured at work — whether in a high-profile case like Adidas or in any California workplace — you have legal rights.

At Michael Burgis & Associates, we fight for:

• Maximum workers’ compensation benefits.
• Fair treatment under Cal/OSHA regulations.
• Legal representation before the WCAB.

Free consultations
No upfront costs
Proven track record in reversing denied claims

Contact us today to protect your rights and secure the compensation you are entitled to.

The Cal/OSHA fine against Adidas proves that even multinational corporations fail in worker safety. But employees are not powerless. Through workers’ compensation and skilled legal representation, you can hold employers accountable, protect your health, and secure your financial future.