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.
- Successful Request for Director’s Compromise. An Aberdeen logging company received a substantial Notice and Order of Assessment as a result of allegedly misclassifying workers as independent contractors. The company came to Mercer Law after the deadline to appeal the assessment had expired, thus severely limiting options to appeal the decision. Mercer Law represented the company in the matter and recently obtained a Director’s Compromise which reduced the assessment amount by more than 50 percent. The reviewing appeal specialist further determined that the audit had incorrectly determined that the logging company had misclassified its contractors.
- Successful Audit Representation. A Seattle construction company, referred to Mercer Law by a prior client, engaged Mercer Law to represent the company in an agency audit. Mercer Law represented the company in the audit, and obtained a favorable initial result for the company. Mercer Law is continuing to represent the company in addressing errors by the auditor and seeking further reductions of the assessed amount.
- Maple Valley Company Tax Assessment Reduction. A Maple Valley construction company was assessed back taxes, penalties, and interest after an auditor determined, among other things, that 1099 workers for the firm failed to qualify as independent contractors. Mercer Law represented the business on appeal and obtained a 35 percent reduction in the assessed amount.
- Cost-Efficient Reduction of Tax Assessment. A Western Washington hotel was audited by L&I for record-keeping and risk classification deficiencies. The business was referred to Mercer Law by a Seattle attorney seeking experienced and cost-efficient counsel for his client. Mercer Law represented the business in an appeal, and was able to obtain a significant reduction in the assessment amount.
- Successful Audit Representation. 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.
- Successful Appeal for Good Measure. Mercer Law subsequently represented the above company in a request for reconsideration of the audit assessment, and was able to further reduce the amount. Mercer Law is now representing the company in setting up a payment plan.
- 37 percent Reduction in L&I Tax Assessment. An Everett janitorial company was audited by L&I and was issued a substantial assessment of back taxes, penalties and interest after L&I determined several janitors to be covered workers. Mercer Law represented the business in appealing the assessment and obtained significant reductions for the client.
- Ongoing ESD and L&I Audit and Appeal Matters. Mercer law represents numerous companies in audits and appeals by state and federal agencies. Mercer Law has ongoing audits and appeals, and will continue to report on our results as matters are resolved.
More of our results are available here, 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.
