WRA received a call from a member on 1-10-07 advising us that L&I had just informed this member he was in error by not reporting hours worked by an employee they considered was an Independent Contractor, even though he had left their employ on 5-31-98. This ex-employee had went out on his own bidding various jobs and using the member's company, along with other companies as a supplier in his bids.
The L&I account manager determined the member needed to amend their quarterly reports for the last three years, 2004, 2005 and 2006. The member was instructed to include the alleged Independent Contractor’s hours worked and to submit a check for the balance due for the past three reporting years. This would have cost the member a total of $1,692.30 for the alleged past due L&I premiums, plus any fines and late fees associated with this delay in payment.
The WRA Director of Industrial Insurance Services, Pat Nielsen, fully investigated this matter. He prepared and submitted a protest to L&I on 3-8-07 arguing the Department was in error as the employee in question was not a "Contractor" per their own definition under RCW 18.27.010. He contended the member should not be held to the six part test to determine if the employee was an Independent Contractor by legal definition.
On 3-13-07 Pat was contacted by the L&I and was informed by the account manager that they agreed with our position and will not be further pursuing this matter. This is a great win for our WRA member.
We encourage our members to contact the WRA if they have any questions about their risk class codes. If an investigation is warranted our Director, Pat Nielsen, will be more than happy to assist.
WORKPLACE POSTERS
Interested in downloading up to date workplace posters, click on this link to L&I's workplace posters. http://www.lni.wa.gov/IPUB/101-054-000.asp
HAVE A SAFETY INQUIRY
This will take you to valuable safety information from Labor and Industries. http://www.lni.wa.gov/Safety/default.asp
If you still have questions, please contact our office.