Stippers, private contractors and workers compensation - what's the connection?

Read an article today regarding a strip club out in Montana that tried to claim that it's nude dancers weren't employees but simply private contractors, thereby negating the need for the club to carry workers compensation. It seems the club required it's dancers to pay a fee for the use of the stage and various other fees for types of dances performed. I guess they figured this would somehow create the impression that the dancers were indeed private contractors and not employees. Well, the Montana Supreme Court found that this arrangement was designed solely to "circumvent the Montana wage laws" and benefit the club financially. The club ended up having to pay back to the dancers money paid to them. I cite this case because many contractors out there seem to think they can do the same thing by claiming their employees are actually sub contractors when they are in reality employees that are required to be covered by workers compensation. Many times they can get away with it, but if something should happen on the job requiring medical treatment, the employer can find themselves in quite a "pickle" if found out by their respective state workers compensation authority. Many times they can be required to not only pay medical expenses but also substantial fines. In the end it can cause more trouble than it's worth.
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