While employees are entitled to the protection of workers’ compensation benefits in case of a job-related injury, independent contractors are not. Unfortunately, many unscrupulous employers wrongly classify employees as independent contractors in order to avoid paying for the insurance. This can leave injured employees in an extremely tough spot, and it could result in severe fines and penalties for the employer. Still, some continue to do it because they are hoping to get away with it.
In the case of Max Trucking LLC v. Liberty Mut. Ins. Corp., a dispute arose between an employer and an insurance company regarding the classification of nearly two dozen truck drivers based in Michigan. The insurance company insisted the workers were employees and increased the company’s premium. Continue reading →