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They are certainly required to keep WC on all employees (although not on the partners or officers of the LLP). The question of whether or not their counterclaims can be barred due to the lack of WC insurance is one for the judge. It is certainly worth raising. I won on a similar issue in another state with that claim, and the contractor could not file any counterclaims against my client due to their own breaches of the licensed contractor statute. It could work the same for you due to breach of the WC requirements. However, if you are representing yourself, do your research carefully. Find case law that supports your theory, and a key point of the decision will hinge upon the rationale behind the WC statute (i.e. if the reason for the law somehow impacts you, then there is a better chance that you will win with your argument to bar their counterclaims). BotXXXXX XXXXXne is that there is no "sure thing" in the law, but this is a viable claim that you should raise and if you do your research and find support for your position you could very likely win.