Owners of a Santa Rosa taxi company have agreed to pay a $200,000 fine and cease operations as part of a settlement with the state for refusing to provide 30 drivers with workers’ compensation insurance and “misclassifying” them as independent contractors, California Labor Commissioner Julie Su announced Thursday.
Kevin and Jenniver Kroh, who run A-C Transportation Services, Inc., as well as Healdsburg Cab Company, previously announced they would close the business at the end of the year because of the cost of battling with regulators. The Kroh’s final payment is due in June 2021, according to the state. The initial citation was $522,300.
“My office will not tolerate the misclassification of employees as a business model because it undercuts both workers’ rights and businesses who treat their employees fairly,” Su said in a prepared statement.
Su’s office launched its investigation into the company in 2014. The citation states that the Krohs did not provide workers’ compensation insurance from 2011 to 2015.
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