DOCTOR DOUG WHITE
Actual Case History
Independent Contractor Status - 1986
Actual Case History
Independent Contractor Status - 1986
In the State of California independent contractors are not required to have workers' compensation insurance, however, the state felt that the companies were working in an employer / employee relationship which required workers' compensation insurance.
The owner of the largest airport cab company contacted us. He indicated that none of the other companies were interested in participating in a lawsuit and wanted to know what could be done about this situation.
The owner of the company, before starting the airport taxi company, had paid a visit to the state labor board with his attorney. The labor board gave them a copy of the fourteen points that needed to be observed in order to qualify as an independent contractor company. The labor board also stated that it was not necessary to comply with all fourteen of these points, just make sure that you comply with some of them. When asked how many, they said, "it's your choice!"
After the company's attorney did his research, he suggested that it would be wise to follow as many of the points as possible. The company followed all fourteen of the points and started their airport taxi business. It grew to about twelve cabs and 23 drivers until that fateful day in February 1985.
The Director of Industrial Relations, who was in charge, felt he had a strong case and was ready to take on the cab company in court. After hearing both sides, the superior court judge overturned the state labor commission and ruled that the local airport cab company did not need to obtain workers' compensation insurance for it's drivers.
The superior court judge said he found no factual or legal basis for the insurance requirement. The judge also ordered the state to pay $1,500 to the company, to cover its attorney's fees. At the very end of the trial the judge indicated to the director of industrial relations, in open court, that he might want to find another vocation, since he didn't seem to understand what was happening in this one! This ruling was issued on July 22, 1986 in a California Superior Court (Case #160381) CASE CLOSED!
CLASSIFIED INFORMATION relating to this case is on file at our offices. This case was officially closed on July 22, 1986. The airport cab companies in this city are still operating as independent contractors, as far as we know!
This case history is designed to provide basic information in regard to the subject matter covered. It is provided as a testimonial to the effectiveness of the coach(s) / consultant(s) involved, with the understanding that the coach(s) / consultant(s) is not engaged in rendering medical, legal, or any other professional services, except for coaching and consulting with clients to provide research and information pertaining to a positive resolution to a challenging personal or business situation. Doctor Doug White was involved in the resolution of this case.
The coach(s) / consultant(s) will have neither liability nor responsibility to any client, person or entity with respect to any loss or damage caused, or alleged to be caused, directly or indirectly by any information provided. Each client takes full responsibility for any use of the personal or business information provided.
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