MOONLIGHTING MECHANICS

Two of our highly regarded aviation publications, AIN and BCA, reported in the last couple months on maintenance technician errors and accidents, and technician personal injury and death.
 
A maintenance technician has been ordered to stand trial for manslaughter for negligence in improperly installing a titanium strip that subsequently fell onto the runway which triggered the fatal Concorde crash that killed 113 people in July 2000.
 
In July 2008 two "contractors" were injured-one critically-during an explosion while performing leak tests on oxygen bottles.
 
 A technician was killed in April 2008 when he was hit in the head by the aircraft entry door while trying to enter the aircraft to troubleshoot a problem unrelated to the door.
 
These recent events all too tragically demonstrate the very real exposure maintenance technicians and the companies that hire them have should their acts, errors or omissions cause an accident or incident, damage to the aircraft, injury or death to others, or their own personal injury or death.
 
Coinciding with these reports another publication produced an article on "moonlighting" mechanics and addresses varying types of exposures to both the mechanics and to the companies that hire them, in the context of either an employee or an "independent contractor" (IC).  The author states the No. 1 consideration is insurance coverage.
 
Do the mechanics you hire as IC's either directly or, indirectly through a 3rd party, carry appropriate insurance for the work they're asked to do?  The specific type of coverage for aircraft technicians is Aviation Products-Completed Operations Liability Insurance.  The specific type of coverage for a technician's personal injury or death is Workers' Compensation.
 
It's highly predictable the IRS and DOL consider these moonlighting mechanics to be employees, not independent contractors, who are to be paid as W-2 workers, and who are not exempt from overtime.  (To view DOL State ABC Tests, click here.)

The next time you're flight department is considering bringing in additional help to supplement your technician staff, ask yourself this - Am I exposing my company to litigation and monetary damages when there is no liability coverage or Workers Comp insurance provided on behalf of my IC?  Do I really want the risk of an IRS or DOL audit and the potential employment cost of back taxes, SS and Medicare, and Workers Comp penalties for misclassifying these workers?
 
Don't get caught on this important issue!  Subscribe to Corporate Aviators, Inc. Employer of Record Payroll Service at www.corporateaviators.com.  Our innovative online service compensates your supplemental maintenance technicians (and pilots and flight attendants) as our W-2 Employees, provides the appropriate aviation liability insurance and Workers' Comp coverage, and pays mandated overtime.  Step through our portal of compliance to peace of mind!    
 

The information provided on this page is for informational purposes and is not intended as legal or accounting advice and should not be used as a substitution for consultation with professional legal or accounting advisors.  We have made every attempt to ensure that the information contained herein has been obtained from reliable sources.