Mercer Law PLLC is pleased to share some of its success stories representing clients in independent contractor matters before state and federal agencies — i.e. Department of Labor & Industries (L&I) and Employment Security Department (ESD) — over the past few months. These cases have been selected to show the variety and types of cases the firm handles for our clients. Names and specific business information have been withheld for client confidentiality.
- Substantial reduction of a half a million dollar Claim Cost Penalty and tax assessment. A Seattle- area business was assessed close to half a million dollars in penalties (Claim Cost Penalty) and taxes after an independent contractor it hired lost his life in a work-site accident. L&I investigated the accident, ruled that the contractor was a covered worker/employee, and held the business liable for death and pension benefits L&I would pay to contractor’s spouse. Mercer Law represented the business in appealing L&I’s decision and obtained substantial reduction in penalties. Mercer Law then assisted with obtaining a favorable payment plan for the business.
- Successful audit representation. The client was an Everett landscape company whose worker was injured in an on-the-job accident. Mercer Law represented the company in an audit, and obtained a favorable audit result for the company. The company ended up paying minimal amounts in back taxes, penalties and interest, and no claim cost penalty.
- Successful audit representation of start-up company with compliance deficiencies. A Skagit County business was selected for an audit after an independent contractor suffered an alleged on-the-job injury. The startup company had admitted compliance deficiencies and was concerned about the fallout in an audit. Mercer Law represented the firm in the audit, worked alongside the auditor in addressing compliance matters, and helped obtain a favorable audit result.
- Audit Results Appeal & Compliance. A Seattle house-cleaning company was audited by L&I and was issued an assessment of back taxes, penalties and interest. Mercer Law represented the business in appealing the assessment and obtained significant reductions for the client. Mercer Law further represented the company in addressing its compliance issues going forward.
- 47 percent reduction in L&I tax assessment. A Monroe construction company was audited by L&I and was issued an assessment of back taxes, penalties and interest after a contractor (a business owner himself who assisted the Monroe company as it had need) was determined to be a covered worker. Mercer Law represented the business in appealing the assessment and obtained significant reductions for the client.
- Workers’ Compensation Coverage Determination. Mercer Law is representing several companies in seeking in L&I’s new Workers’ Compensation Coverage Determination Program. The program offers businesses a way to obtain a formal opinion from L&I regarding whether Washington law requires them to pay workers’ compensation premiums on workers designated as independent contractors.
More of our results are available here, here, and here.
Please note that Mercer Law PLLC cannot guarantee a given result or outcome for any case. These matters are highly fact-specific, and the results for each case cited above should not be relied upon as a guarantee or promise of similar results. Each case, therefore, must be evaluated by the relevant facts, circumstances, and law with its own individual outcome.
For more information on how to comply with independent contractor obligations, consult with an experienced independent contractor law attorney, and check out 1099 Review™, a Mercer Law PLLC product, and Washington’s State’s first online independent contractor risk assessment tool and resource center.
