State Payroll News: Nevada - The "Workers' Compensation Myth"

The September 2005 issue of Workers' Compensation Chronicle includes an article on the potential fraud issues facing employers that accept the "Workers' Compensation Myth", namely "I don't need coverage because I use independent contractors".

In 2004, the Workers' Compensation Fraud Unit in the Nevada Department of Justice prosecuted over 200 employers that failed to provide workers' compensation coverage. One of the most common excuses made by employers is that coverage is not needed because the employer uses "independent contractors" instead of employees. However, harboring such beliefs may result in employers facing criminal charges and being held responsible for the medical benefits paid for the injured worker.

An example given in the article of the common type of dubious claims made involved a Las Vegas trucking company. A driver was asked to sign an independent contractor agreement. The driver, however, worked regular shifts, drove the company truck and was told what routes to take. The driver was not responsible for the costs associated with the operation of the truck. Therefore, this driver was an employee and his employer was prosecuted despite his belief he was using an independent contractor.

...back to 8 September 2005

Further information:
Nevada Workers' Compensation Chronicle

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