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Workers'
Compensation - If you employ an individual that you
believe to be an independent contractor but is determined to be
a worker, then you are the employer and responsible for providing
workers' compensation coverage. Employers that are out of compliance
with workers' compensation law are liable for penalties of two times
what they would have paid in premiums or $1,000, whichever is greater.
Upon additional occurrences of non-compliance, the penalty is $250
per day for each day out of compliance with no maximum amount which
can be assessed. After a third offence, the employer is referred
to the Department of Justice to pursue a court ordered injunction.
Further violation will result in a contempt of court judgment with
possible jail time.
If
a subject worker is injured while employed by someone that does
not have workers' compensation insurance, the worker may still be
eligible for benefits. The claim is referred to an agent for processing.
In addition to penalties assessed for noncompliance, the employer
must reimburse all claim costs and a claims processing administration
fee. There is no protection under an incorporation because officers,
members, or partners are separately and individually liable for
the costs. And, the non-complying employer is subject to civil action
in addition to workers' compensation benefits if the injured worker
files a civil suit. There is no exclusive remedy protection if the
employer does not have coverage at the time of injury.
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