R & G Probst v. Dept. of Labor & Industries

**Diamond Driving School Loses Fight Over Insurance Premium Assessment** This case involved Diamond Driving School challenging a $68,000 assessment from Washington's Department of Labor and Industries for unpaid industrial insurance premiums. The driving school argued they shouldn't have to pay because the business owners and partners were exempt from workers' compensation coverage. The court sided with the Department of Labor and Industries. While the court agreed that the owners and partners were indeed exempt from coverage, Diamond Driving School lost because they failed to provide required business records during the department's audit. Under Washington law, when a business doesn't produce necessary documentation during an audit, they lose the right to contest the assessment later in court. **What this means for workers:** This ruling reinforces that employers must maintain proper business records and cooperate with state labor audits. When employers fail to keep adequate records or don't provide them during audits, the state can impose assessments that become very difficult to challenge. This protects the workers' compensation system by ensuring employers can't avoid their obligations simply by failing to maintain proper documentation. The decision helps preserve funding for the insurance program that protects workers who get injured on the job.