OUTSTANDING ACCOMPLISHMENTS
Doctor Doug White, PhD.

 

Story Number FIFTEEN  

"Worker's Comp Not Needed, Judge Says"

After a certain period of time the taxi cab business caught on to what I was doing at the airport
and other companies started to put cabs out at the airport to pickup incoming passengers.

We had developed around 12 taxi's that supported the airport so the competition was fierce.

Our company grew and developed and we became well known.
One day, at the airport, a gentleman in a suit came out and handed all the different taxi companies
( he was from the labor board ) a stop work order, which meant that you needed to supply worker's
compensation for each of your drivers or shut down.

Their claim was that we were operating our business as employer / employee and not
as independent contractors.

( employer / employee in the state of California requires worker's compensation
operating as independent contractors does not... )

When I started my company I had my attorney investigate the independent contractor position
in the state of California and we found that even though the labor board had 14 different requirements
 they only required compliance with a few of the requirements ( government - vague as usual ).

So, we decided to comply with all 14 of the requirements and we operated our company with
independent contractors instead of employees.

The difference is that independent contractors pay their own taxes and other costs and we are
not required to take anything out of their check. We issue them a 10-99 at the end of the year
and they pay their taxes and other costs, accordingly.

When I got my copy of the work order I read it and immediately sought the cooperation of the other
taxi cab owners in fighting the labor board. None of them wanted any part of the law suit and they
simply planned to drop down the number of taxi's they used or shut down their business.

So, I took on the labor board, myself. I hired the best labor board attorney in town and we went
to work. The battle lasted just under one year and cost a bit of change.

After the battle with the labor board and the director of industrial relations, 
in the local Santa Barbara Newspress an article appeared:

"WORKER'S COMP NOT NEEDED, JUDGE SAYS"

A Santa Barbara Superior Court Judge has overturned the state labor commission and ruled that
a local cab company ( Santa Barbara Airport Taxi ) does not need to obtain
worker's compensation insurance for it's drivers.

Judge Ronald Stevens said he found no factual or legal basis for the insurance requirement. The judge
also ordered the state to pay $1,500.00 to the company, Santa Barbara Airport Taxi, to cover it's attorney fees.

According to an underwriter for the State Compensation Insurance Fund - worker's compensation
insurance would have cost airport taxi a minimum of  $40 per driver, per shift. The firm's owner
said the expense could have put him out of business.

Judge Stevens issued his ruling July 22, 1986 ( Case # 160381 ).

Not only was I responsible for establishing "independent contractor status" for taxi drivers in the state of
California, I was also involved in another one of my businesses where I established 
independent contractor status for auto detailers.

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SPECIAL NOTE: Research proceeds all operations of any business. I took the time, at the beginning,
to investigate "independent contractor status" and comply with the 14 rules ( gingerly required ) by
the State of California's Labor Board. This enabled me to continue with my business, after winning against
the labor board in court, and kept me from losing money. Do your research, first! CDW.
 
“I work with people who want to live a longer, healthier, happier and more prosperous lifestyle,
to any age they choose.” CDW.
 
Make contact today 1- (Info@DrDougWhite.com)
 
Out of the U.S. send me an e-mail AbetterLife@DrDougWhite.com and list your name,
phone number and the best time to call and I will make contact to get you started. CDW.