Henry Industries, Inc. v. Department Of Labor & Industries

**What happened:** Henry Industries classified 33 drivers as independent contractors instead of employees. The Washington Department of Labor and Industries investigated and determined these drivers should actually be considered "workers" under state law. This meant Henry Industries was required to provide workers' compensation insurance for them but had failed to do so. The department imposed financial penalties on the company for not paying the required workers' compensation premiums. **What the court decided:** The Washington Court of Appeals sided with the Department of Labor and Industries. The court confirmed that the 33 drivers were indeed "workers" under Washington's Industrial Insurance Act, not independent contractors. This meant Henry Industries was legally required to carry workers' compensation coverage for them. The court upheld the penalties against the company for failing to meet this obligation. **Why this matters for workers:** This ruling reinforces that companies cannot simply label workers as "independent contractors" to avoid providing benefits and protections. Courts will look at the actual working relationship to determine if someone should be classified as a worker entitled to workers' compensation coverage. This protection ensures injured workers can receive medical care and wage replacement if hurt on the job.