Hi, My name is XXXXX XXXXX I’m happy to assist you with your question today. I’m sorry to hear abut this.
When this person attempted to file a claim with workers comp they would have queried your records and of course found nothing. This is an attempt to identify your carrier and workers comp information so the employee can individually file a claim. What you'll want to do is simply be honest and answer "not applicable" because we are a single member llc with no employees.
Now, when the agency receives this, they'll send you a further inquiry to determine if this person was legally a contractor or an employee. If one company hires another company to come in and do some work for it, the second company is ordinarily an "independent contractor" and not an employee of the first company. Sometimes, however, a company hires one person to come in and perform a specific job and disputes arise as to whether or not that person is an employee or an independent contractor. Section 161(1)(n) of the Act states that if the worker does not maintain a separate business, does not hold himself or herself out to and render service to the public, and does not employ other workers, the worker will be considered an employee.An individual for whom an employer is required to withhold federal income tax is prima facie considered to perform service in employment under this act. If a business entity requests the Michigan administrative hearing system to determine whether 1 or more individuals performing service for the entity in this state are in covered employment, the Michigan administrative hearing system shall issue a determination of coverage of service performed by those individuals and any other individuals performing similar services under similar circumstances.
I'm not saying here that this particular worker is or is not an independent contractor, but it appears you are going to have a dispute. The contract
you had him sign will weigh in your favor but it is not the end of the story. The determination will largely depend on your level of control of the work - did you control his hours, duties, provide the tools to do work etc. I'd recommend you seek legal counsel in your area as there likely is going to be a dispute and the ramifications can be significant in that you'd have to pay workers comp out of pocket if you lose and the workers comp agency will consider you to be an "employer" if you lose.
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