Michigan Auto Auction

Subcontractor insurance laws…Whos responsible???

My friend is a car porter (For an auto auction company) in Michigan and last winter he had a fender bender that caused around $2,000 damage. His boss never required him to carry any type of insurance and he works 40+ hrs per week always leaving from the same building to different locations throughout the state (Technically is he a subcontractor?). Now his boss is taking $100 per week from my friends paycheck to cover the damages (out of $400-$500 avg wkly pay). Since he was never required to carry insurance is he responsible? I used to work construction and my boss made his subs carry insurance so he wouldn’t be responsible for their mishaps…Also how could he find out if his boss claimed it to his insurance and is double dipping? His boss never gave him any paper work explaining damages or had him sign anything saying he could garnish his check. Ive spent hours on here trying to find answers and I cant navigate through all the BS to find the simple solution…Any help anyone?

Did your friend fill out any tax forms when he first started, like a 1099? The best way to know is on his paycheck. Does the contractor take money out for taxes? If he does, he is NOT a subcontractor. If he get paid a set amount or an amount for each car he could be considered one. Contractors always have subs send a copy of their insurance, including liability policies. That is the norm. I think the auction co., and his boss is screwing him. How would he be considered a subcontractor??? He is an employee. You can contact the the town you live in to see what the deal is on the boss’ business. It sounds to shady to me. What if one of the cars’ was totaled? Someone would have to cover the cost of the car. There is no employee who would be able to cover that cost. He cannot garnish his wages, that’s illegal. Your friend is really getting screwed. The outcome depends on what he wants to do about it.

I just looked at a couple of ads for working for an auto auction. there is no mention of subcontacting. You work for them, they offer good pay and benefits. You friend is getting screwed.

VOA Auto Action, Pontiac, MI

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