Is an employer liable if they hire a contractor or subcontractor who does not have compensation coverage?
It is important for an employer to check with YWCHSB to see if the contractor’s or subcontractor’s account is in good standing. If they default on their assessments, the employer may be liable for those assessments. Employers may withhold funds from contractors or subcontractors until confirmation that their assessments have been paid. The employer can request a clearance letter from YWCHSB confirming their account(s) are in good standing.
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