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California taxi company reaches settlement for failure to carry workers’ compensation insurance

One taxi company in California learned the hard way what it costs when you fail to carry workers comp insurance and misclassify drivers.

By Rosalie L. Donlon | Updated on January 03, 2017
Many taxicab companies try to claim that their drivers are independent contractors to keep costs, including workers' compensation insurance, at a minimum. (Photo: Thinkstock)

California Labor Commissioner Julie A. Su announced Dec. 29 that Santa Rosa taxi company A-C Transportation Services, Inc., has agreed to settle its $522,300 citation for refusing to provide its 30 drivers with workers’ compensation insurance coverage and for misclassifying them as independent contractors.

The owners, Kevin and Jennifer Kroh, who also do business as Healdsburg Cab Company, agreed to pay a fine of $200,000 in installments, with their final payment in June 2021. If they default on the payments the agreement is void and the full $522,300 judgment will be due. As part of the settlement, the company will cease all operations as of Dec. 31, 2016.

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