Workers comp

Discussion in 'Trucking Industry Regulations' started by DHF, Apr 30, 2011.

  1. DHF

    DHF Bobtail Member

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    Feb 20, 2011
    Roseville, ca
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    Can an O/O in CA make a potential employee a partner of the company instead and legally not be obligated to paying W/C ? I.E. File for LCC status and both owner of truck and other driver sign the form as partners. It makes more sense to have a group health insurance plan than W/C as it would save a lot of $ and both owner and other driver can use health insurance regardless if accident or illness happens on job or not whereas W/C would only cover other driver if an accident occurs on job.
     
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  3. shredfit1

    shredfit1 Road Train Member

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    Nov 24, 2008
    MN
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    This is a touchy subject and I'm sure it's different from state to state...

    Firstly, workmans comp must be payed for an employee reguardless of another insurance plan... Here is why, say a lumper slips inside your trailer and gets hurt... he may(if legal to work in the country :biggrin_2556:) file a comp claim on you.

    Ok, here is the way some people get around this in MN... An O/O would have to lease his truck to another driver... or O/O. This driver would then not have to pay workmans comp... and a lumper slip could be covered in an increase in truck/trailer insurance.... which costs about as much as workmans comp...

    Either way... you pay.
     
  4. CondoCruiser

    CondoCruiser The Legend

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    Most places you won't get group rates unless you have 20 employees or more.
     
  5. DHF

    DHF Bobtail Member

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    3
    Feb 20, 2011
    Roseville, ca
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    Thanks for the input .... I am aware of the lease option but I am looking for a way where driver doesn't need to have truck, insurance in his name and own CA # etc.
    Even if there is no group rate for 2 people it would still be half that of WC and make way more sense because we both are covered wether accident or illness occurs on job or off and I haul ethanol so no lumpers are ever used. This driver worked 14 yrs without a WC claim before and if he works 10 with me, paying over 80k for something he likely will never use seems like bad business and I would be throwing hard earned $ into a system where most the $ goes to running the messy beast of a business and into a WC insurance brokers pocket. I rather buy another truck and or use the difference to retire on.
     
  6. shredfit1

    shredfit1 Road Train Member

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    Nov 24, 2008
    MN
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    With the added info, this changes a lot. Many many fuel terminals require a copy of you workmans comp policy to enter their property. I know this because I hauled ethanol for a couple of years.... They may not ask right away until they have their yearly on site insurance audits... If they find out your not carring comp. you will be banned from unloading there for ever...(the reason I know this is my old boss tried to get around paying it...until some of them found out). Ethanol plants also require you carry comp. if they find out your not you may risk losing loading privlages. My old boss was then forced to get workmans comp. (he didn't want to, but he did as his company was kicked out of a few loading and unloading terminals)
     
  7. DHF

    DHF Bobtail Member

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    Feb 20, 2011
    Roseville, ca
    0
    Thanks shred ... I can believe that but so far neither ethanol plant or drop off sites has asked. I am hoping making the driver a partner on LLC filing will be the way around paying into WC so I can put $ to better use and cover myself as well instead of only driver for twice the price only on the job. HealTh insurance makes so much more sense ... It won't pay lost wages but the odds of getting hurt on the job loading n unloading ethanol are slim to begin with, to the point that after the safety training he went thru at the drop off sites it would likely be his mistake that caused the accident or if plant blew up he could sue them for lost wages if he lived to do so. WC is way to expensive for the coverage and probability of actually needing it.
     
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