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  1. #1
    Join Date
    Jun 2006
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    29

    Default Has no WC but charges for it.

    If a company charges it's employees for Workman's Compensation by taking it out of their pay and then maintains that they are in fact contractors and doesn't have a policy is he breaking any law?

    He does have a policy, but it is for another company that is no longer in business but not closed out. The employees he lists are old employees that no longer work for either company. He was audited by that carrier but got away with it.

    Incidentally one of the drivers did have an accident and is on permanent disability.

    I want to report this as I feel somehow cheated, but to who!

  2. #2
    Join Date
    May 2006
    Location
    USA
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    663

    Default Re: Has no WC but charges for it.

    State law varies. What state are you talking about?

  3. #3
    Join Date
    Jun 2006
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    29

    Default Re: Has no WC but charges for it.

    Quote Quoting Guilty Or Not Guilty
    State law varies. What state are you talking about?
    I'm sorry, Maryland.

    We have a list of things that must be present to be considered contractors and not employees. One of them being an agreement, and I think it has to be written. But in any case contractors must be able to refuse jobs(courier runs) witch if you do he slams you're entire check.

  4. #4
    Join Date
    May 2006
    Location
    USA
    Posts
    663

    Default Re: Has no WC but charges for it.

    Check out this link.
    http://www.expertlaw.com/library/com.../Maryland.html

    If it does not help you let me know.

  5. #5
    Join Date
    Jun 2006
    Posts
    29

    Default Re: Has no WC but charges for it.

    Quote Quoting Guilty Or Not Guilty
    Check out this link.
    http://www.expertlaw.com/library/com.../Maryland.html

    If it does not help you let me know.
    I think I may have been misunderstood, most likely my fault.

    In Maryland a company that has "employees" must have WC, but contractors are not employees if the meet requirements like an agreement that they decline it, for whatever reason. This owner has no agreement with any of the 10 contractor/employees. To make things worse he doesn't have a WC policy for them and charges them for it.

    I also realize that the contractors could sue for their money back, but feel that's not enough. These workers that don't have the insurance think they do so may not elect to get their own. This can and has caused a problem.

    What I am asking is could a district attorney consider this Larceny or any other crime aginst either the workers or the State of Maryland? Harm to the workers isn't it's full potential, what happens(and as I said has) if one of these drivers is injured, loses his home, and more to the point the tax payers have to pay for a lifetime of disability.

  6. #6
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Has no WC but charges for it.

    Are you sure that these people are being properly classified as independent contractors, as opposed to actually being employees (misclassified by an employer who does not want to pay matching taxes or do withholding)?

    If the person employing these independent contractors truly is withholding amounts from their checks for "worker's compensation insurance", it would support the argument that they are in fact employees. Even if not, it would also support the argument that, if something happened to them, the person who hired them would have responsibility to provide the benefits he charged them for.

    They, and perhaps particularly the worker who was injured in the auto accident, should consult a plaintiff-side employment lawyer for a full assessment of the situation and their rights.

  7. #7
    Join Date
    Jun 2006
    Posts
    29

    Default Re: Has no WC but charges for it.

    Quote Quoting aaron
    Are you sure that these people are being properly classified as independent contractors, as opposed to actually being employees (misclassified by an employer who does not want to pay matching taxes or do withholding)?

    If the person employing these independent contractors truly is withholding amounts from their checks for "worker's compensation insurance", it would support the argument that they are in fact employees. Even if not, it would also support the argument that, if something happened to them, the person who hired them would have responsibility to provide the benefits he charged them for.

    They, and perhaps particularly the worker who was injured in the auto accident, should consult a plaintiff-side employment lawyer for a full assessment of the situation and their rights.
    Yes I am sure, I was one of the three owners that owned the LLC. This one of the many reasons I sold my interests in the business.

    Part of you're statement is faulty, a business does have to have WC even though they are not employees and are considered contractors. This is a separate issue from employee taxes, withholding, and classification.

    It is also my belief(this is my real question) that by having a fraudulent policy in a different business name and pretending to have a policy he is committing a crime.

    Why would there have to be a workers complaint for it to be considered a crime. Imagine if many business owners behaved this way, there would be fewer dollars going into the system and, assuming no one had a claim, the same dollars going out.

  8. #8
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Has no WC but charges for it.

    Which part of my statement is faulty? Just curious.

    The first sentence of your last paragraph - is that supposed to be a question, or some type of rhetorical comment? If a crime is being committed, you could report it (if you are so inspired).

  9. #9
    Join Date
    Jun 2006
    Posts
    29

    Default Re: Has no WC but charges for it.

    Quote Quoting aaron
    Which part of my statement is faulty? Just curious.

    The first sentence of your last paragraph - is that supposed to be a question, or some type of rhetorical comment? If a crime is being committed, you could report it (if you are so inspired).
    Again I'm sorry please don't take me the wrong way. It's the linking of employee status with a possible crime that isn't related to employee laws.

    This is part of my frustration, I did report it to the fraud department of the carrier. They simply told me that they have no policy for the functioning company. It's as if since they can't collect their rates because they don't have a policy there is no problem. I guess with them that's true, but how about any others. Like I said these drivers had no insurance but paid for it. And the Tax payers are now paying for an ongoing case.

    If this is a crime and the insurance company now knows about it aren't they partly guilty of not reporting it, after all they are the ones that post the stop WC fraud crime posters. I just think there should be some outrage and accountability other than mine.

  10. #10
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Has no WC but charges for it.

    I'm not taking anything the wrong way. I did not say anything about a crime - that's all you. Further, taking deductions from an independent contractor's pay is consistent with the misclassification of an employee, even if you don't think that occurred in this case.

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