R&G Probst v. Department of Labor & Industries

**Diamond Driving School Failed to Pay Workers' Insurance Premiums** This case involved Diamond Driving School, which failed to pay required industrial insurance premiums to Washington's Department of Labor & Industries. Industrial insurance provides workers' compensation coverage for employees who get injured on the job. The Department assessed Diamond Driving School $68,028.76 in unpaid premiums and penalties. Diamond Driving School challenged this assessment in court. The company argued that its three partners should be exempt from coverage, which would reduce the amount owed. While the court agreed that the partners were indeed exempt, it still upheld the full $68,028.76 assessment against the driving school. The court ruled against Diamond because the company refused to cooperate during the Department's audit. When investigators requested business records to verify the assessment, Diamond failed to produce them. Under Washington law, employers who don't cooperate with audits lose their right to challenge the accuracy of premium assessments. **What this means for workers:** This ruling reinforces that employers must pay into the workers' compensation system and cooperate with state audits. When employers try to avoid these responsibilities, the law protects workers by ensuring the state can still collect what's owed for workplace injury coverage.