Temp Agency Owes Washington State Over $500,000 for Workers' Comp Misclassifications

March 5, 2001

Tacoma-based Labor Ready owes the state close to $500,000 because it misclassified employees when calculating workers' compensation premiums. Auditors for the Department of Labor and Industries say that the massive temporary agency owes $497,930 in unpaid premiums and more than $236,000 in penalties and interest, for 1998, the year audited.

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The department's auditors believe the misclassifications were accidental and plan to audit the 1999 and 2000 policies, as well. Last month, the Ohio Bureau of Workers Compensation found similar misclassifications and ordered the company to pay $48,000 in back premiums.