I am proud to report that we have saved our client, a small software company, $100,000.00 in workers’ compensation penalties. Sometimes the Workers’ Compensation Board will attempt to penalize small business owners for not having workers’ compensation insurance, even when the business has no employees.
In addition, the Board often levies penalties that are unjustly burdensome to the small business owner.
Our client was a small computer company whose penalty was incorrect, because it had no employees, and wildly excessive at $100,000.00. We argued the “control test” and the “relative nature of the work test” to determine independent contractor, and we also argued that the penalty was excessive, and as such, worked an unjust burden on the small businss owner.
I am proud to report that the Board rescinded the entire $100,000.00 penalty!
Every employer has a legal and moral obligation to protect its workers with workers’ compensation insurance. However, the small businessman and woman has rights, too, and must be protected from incorrect and excessive state penalties.