OHIO Former Attorney General Aide Misclassifies Workers to Reduce WC Premiums

A survey of what the media, state agencies, insurance companies, and others report in terms of workers’ comp fraud, listing recent arrests, charges, and convictions.

Criminal complaints and indictments are accusations only.
Defendants are presumed innocent until proven guilty.

Independent Contractors Don’t Have Employers

According to the Ohio Bureau of Workers’ Compensation, a former top aide to fallen Attorney General Marc Dann committed attempted fraud by improperly classifying workers, which lowered the premium he owed the agency.

The ruling found that the AG’s former general services director, improperly classified four workers at his construction firm as independent contractors instead of employees. The improper classification reduced the premiums owed the state. The attempted workers’ compensation fraud charge is one of six the former aide admitted to as part of a plea deal reached in August with most charges involving his construction company. He faces a maximum of $6,700 in restitution. The amount he must return to the state is confidential

The aide’s attorney argued to the Bureau of Workers’ Compensation during a hearing earlier this month that the workers failed to meet at least 10 of 20 qualifications, as required by state law, to be considered employees as opposed to subcontractors. He also said despite the plea deal an appeal is planned against the bureau’s findings. After that, he could choose to take an appeal to common pleas court.

The bureau’s report said the “weight of the evidence” indicated the four workers in question were employees.

The report said the workers were paid on a weekly basis, were provided training, faced termination if they did not show up at the required times, and worked only for the man’s construction company.

“In addition, at least one of the workers interviewed by the Bureau reported he was paid a Christmas bonus and recalled the possibility of future health benefits being discussed.

See also: How to Identify and Employee from an Independent Contractor https://blog.reduceyourworkerscomp.com/?p=474

Reposted with Permission: Visit LexisNexis Workers Compensation Law Practice Center for more information and full reports.

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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.