State law requires most employers in the Commonwealth of Virginia to carry an insurance policy that will cover expenses in the event an accident occurs that leaves a worker injured. Unfortunately, many employers attempt to avoid the costs of carrying Virginia workers’ compensation coverage by misclassifying employees on their payroll.
The state is working to address this issue though. In fact, the Virginia Workers’ Compensation Commission just announced it would be increasing the penalties for any company that is caught committing infractions of employment fraud.
A press release from the agency states uninsured employers will face a civil penalty of as much as $250 per day—with a maximum of $50,000— for non-compliance. The new regulations apply to any company or person who hires two or more part- or full-time employees. Those who use subcontractors must also count those individuals as their employees as well.
The hope is that new regulations and better investigations will deter companies from attempting to list employees as “independent contractors” in order to save money. The agency says they will be closely observing how control is exerted over a worker’s manner and means of completing their tasks in order to make a determination as to how an employee should be classified.
At Lowell Stanley Injury Lawyers, our Norfolk personal injury attorneys have seen the effects a lack of benefits and resources can have on injured workers, which is why we are hopeful the reforms being made in Virginia will help provide Virginia workers’ compensation coverage to more workers.