Construction Workplace Misclassification Act
The Workers’ Compensation Act requires a contractor/employer to stand in reserve and provide workers’ compensation insurance for subcontractors and their employees, if that subcontractor does not have insurance. Originally the Workers’ Compensation Act set enacted this requirement in order to protect workers. The legislature believed that making the contractor responsible for workers’ compensation benefits when its subcontractor was uninsured, would force the hiring contractor to make sure that the subcontractor it hired had insurance. However, that is not what happened.
