Jay-Z's Problems Include $18,000 Court Order for Not Insuring his Cooks - Celebrity Justice
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Jay-Z's Problems Include $18,000 Court Order for Not Insuring his Cooks

Rapper Jay-Z has 99 problems, and workers' compensation insurance is one. Jay-Z's insurance woes have netted him a legal headache and an $18,000 order to pay by a New York court. Jay-Z's worker's compensation troubles started out mild.

Like any multimillionaire, Jay-Z employs individuals to help out around the house. He has a driver, cooks, and maids.

He is required by law to pay worker's compensation insurance for his household staff. The insurance lapsed because he failed to pay for three months in 2009.

After the lapse, he arranged for the correct insurance, according to WNYW-TV. Yet he never paid the $18,000 he still owed. That's when the Workers' Compensation Board of New York sued.

Sources close to the rapper say that all of this is a result of an administrative error. And that Jay-Z never actually missed a payment on his insurance.

Most states require employers to purchase workers' compensation insurance. The insurance gives employees injured on the job certain benefits. These benefits typically include medical care, replacement income, retraining, and compensation for permanent injuries. Workers' compensation can also provide benefits to surviving relatives of employees who are killed on the job.

Employees that accept worker's compensation cannot sue the employer.

It's in the best interest of the employer to provide workers' compensation. First, it's required by law. Employers that violate state workers' compensation statutes can face criminal penalties and fines. Second, if they don't provide insurance they can be held personally liable for injuries if employees sue.

Luckily, Jay-Z's insurance snafu won't cost him too much, considering his net worth. $18,000 isn't much to a multi-millionaire. Next time though, Jay-Z better remember to pay his workers' compensation policy. Facing a lawsuit filed by an injured employee would probably be much more expensive.

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