Washington auto shop owner snagged in second workers' comp scam
Employees were paid off the books and in auto parts to conceal the fact the business had no workers’ comp insurance.
The owner of a Washington auto repair shop, who has a history of evading workers’ comp insurance, has again been charged with operating without the necessary coverage, according to the Washington State Department of Labor & Industries (L&I).
Rodney Eugene Dietrich plead guilty to the felony offense and was sentenced to 30 days of electronic home monitoring. In addition to the monitoring, L&I reports he owes more than $40,000 in late premiums, interest and penalties as well as $2,200 in wages and penalties for failing to pay an employee in 2013.
In 2016, Dietrich plead guilty to a misdemeanor version of the same offense, the department reported.
L&I contends that from Nov. 2017-May 2019, Dietrich had two employees and failed to provide workers’ compensation insurance. One employee said he was paid cash for his labors, while the other traded work for auto parts and other items.
“Washington employers pay workers’ compensation premiums to be sure that workers and their families are taken care of if they are injured or killed at work,” Steve Reinmuth, assistant director of L&I’s field services and public safety, said in a release. “Breaking the law and passing those costs onto other employers who obey the law is shameful.”
Different name, same scam
Since about 2004, Dietrich operated an auto shop from the same location and has changed the name, business structure and license number three times. The changes all came after falling behind on workers’ comp payments, according to L&I, which issued repeated notices and warnings. In 2014, the state revoked Dietrich’s workers’ comp insurance on the three business entities, which meant he couldn’t hire employees.
Dietrich’s deceitful ways became uncovered by L&I employees who passed the business, which is two miles from the L&I field office and on a main thoroughfare, and noticed it appeared to have workers again. L&I launched an investigation and staked the business out for 18 months.
Related: