WCB Abuse Investigation Unit v. Neal

Insurance Company

Date Decided

February 9, 2016

Panel Members

Sue Jerome

Tom Pelletier

Mike Stovall


Employee / er Definitions Penalties


Independent Contractor Employee Definition Penalties Hair Salon §324(3) §401

File Size

181 KB


Summary from the Troubh Heisler Attorneys

WCB Appellate Division overturned the decision and penalty imposed by Richard Dunn at the WCB Abuse Investigation Unit against the owner of a hair salon.

Hearing Officer Dunn had ruled that the owner was the “employer” of the hairstylists who rented booths in the salon to service their own customers and fined her $300 for not declaring them as “employees” and purchasing workers’ compensation insurance coverage for them. The Appellate Division found no "contract of hire" (express or implied) between the salon owner and the other hairstylists and therefore vacated Hearing Officer Dunn’s decision and fine.

By virtue of the finding that the stylists are not employees, Bangz lacks the immunity from civil suit that the WC Act gives employers who have workers’ comp coverage.

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