A workers' compensation case has put a California taxi company out of business.
Faced with more than $500,000 in fines, A-C Transportation Services, Inc. closed the doors on 20 cabbies on Dec. 31, 2016. The Department of Industrial Relations announced that the closure was part of a settlement based on the company's failure to provide workers' compensation for its drivers.
Kevin and Jennifer Kroh, who also did business as Healdsburg Cab Company, agreed in the settlement to pay a fine of $200,000 and to cease doing business. They had argued unsuccessfully that the drivers were independent contractors rather than employees, and not entitled to workers' compensation.