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| In today's highly
regulated environment, it is imperative
that companies examine the alternatives
available to help them comply with the
changing and sometimes stringent requirements
placed on them regarding the use of
Independent Contractors. The hardening
insurance market for Workers’
Compensation along with changing perceptions
of various alternative programs has
created a very difficult environment
for companies who utilize independent
contractors to operate in effectively.
The effects of Reclassification from
a Workers’ Compensation point
of view can result in severe consequences
that most often lead to significant
financial harm to the contracting company. |
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| SCI operates in the
legal capacity of a “Primary General
Contractor” in terms of managing
the contract issuance and 1099 payroll
administration, and driver servicing
between the driver and the Courier Company.
SCI contracts with each driver, provides
the driver and their vehicles back to
the Courier Company, and provides ongoing
administrative services such as settlement
check issuance, settlement deductions,
and vendor payee services associated
with the subcontractors. Additionally,
SCI administers, reviews, and tracks
the 1099 reporting responsibilities
for the settlement payments made to
the Independent Contractor. |
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| SCI assures
the client company that every driver
operates under a formal and legally
recognized operating agreement and is
responsible for processing each driver’s
settlement compensation check. This
structure established contractor while
disconnecting the work being facilitated
by the Courier Company and the delivery
services offered by the driver. |
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| SCI requires each
independent contractor to either provide
evidence of Workers’ Compensation
Insurance, or to participate under an
approved and endorsed Alternative Program.
SCI requires that the “Alternative
Program” must contain a valid
coverage mechanism that will respond
with true Statutory Workers’ Compensation
protection in the event an independent
contractor sues and wins reclassification
as an employee. If the Independent Contractors
can not provide such coverage, SCI will
provide them with access to a sponsored
program negotiated for SCI’s drivers.
The SCI program includes Occupational
Accident insurance, Contingent Liability
insurance, as well as its own Statutory
Workers’ Compensation policy. |
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| SCI presently has
over 200 active Courier Company Clients
with over 8,000 Independent Contractor
Drivers under contract. In 2001, SCI
was awarded the Vendor of the Year Award
by the New York State Courier Association
for the high quality of services and
support SCI has provided to the Courier
Industry. There have been a few companies
that have attempted to provide similar
services that SCI affords its clients,
but none have combined all facets of
data processing systems, administrative
support, and legal protection delivered
by SCI to the drivers as well as to
the Courier Company. We believe we offer
a “Total Risk Management Solution”.
In the event of any claims activity,
SCI also provides oversight and tracking
for the reporting, eligibility verification,
accident investigation, and identification
of any possible subrogation resolution
for all claims associated with our Occupational
Accident and Worker’s Compensation
program. |
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