Community Insider Summer 2019 | Page 29

does not provide worker’s compensation insurance at the statutory rate, the CID could expose itself to considerable liability, including but not limited to, fines and penalties from the respective State or Federal agency. Further, if the person is deemed an employee and the Association does not have workers compensation insurance to cover their work, the Association could be on the hook for a considerably larger sum to cover any injuries and rehabilitation. If you intend on hiring an independent contractor, make sure that contractor is fully qualified to act as such and is not in reality an employee of the CID. Just because the contract identifies the vendor as an independent contractor does not fully satisfy the ABC test. Similar to Andersen’s Emperor, your perception of the qualifications of the vendor may not be consistent with reality. If you have any concerns, contact your legal counsel to review the true classification of the contractor. Simplifying property management Pacific Western Bank offers dedicated teams to help you: Increase profits Simplify dues payments Manage growth Reduce fraud Learn more Susan Abubo, AVP, HOA Manager 760.432.1332 | [email protected] 900 Canterbury Place, Suite 202, Escondido, CA pacificwesternbank.com Jonathan D Massie is a principal of Massie Berman, APC, a full-service law firm, specializing exclusively in representation of homeowner’s associations. Mr. Massie can be reached at (619) 260-9010 or [email protected]. /cai.sd /in/caisandiego WWW.CAI-SD.ORG | 29