WA Man Sentenced After Changing Business Name to Avoid Paying Late WC Premiums
May 4, 2026

hidingA Washington man was sentenced for employing workers and not providing them with workers’ compensation insurance. Rodney E. Dietrich operated his business since 2004 and changed the business, either by name or structure, several times because each different business model fell behind in workers’ comp payments.

His business operated as Rods Auto Repair, RODs Cars LLC or RODs CARS Corporation, all in the same location in Kennewick, WA. After repeated warnings and notices the Washington State Department of Labor & Industries (L&I) revoked his coverage in 2015. He was found guilty of continuing to employ workers after that time. Once your coverage is revoked you are not allowed to employ workers. They were not protected in the event of an accident and at least one employee told investigators they were paid in cash. Dietrich owed $40,000 in late premiums and penalties, and $1,800 in wages and penalties to an employee who was not paid in 2013.

The assistant director of L&I’s Fraud Prevention & Labor Standards office, Elizabeth Smith, said that if an employer feels like they are falling behind on premiums they should contact the office. They can work out a payment plan and prevent having to revoke workers’ comp coverage or penalize late employers.

Dietrich was sentenced to 364 days in jail, but that sentence could be suspended for at least two years if he does not commit any crimes or employ anyone without comp insurance. Dietrich repaid his employee $670 in back wages and paid L&I the $241 in comp coverage he owed for the worker he employed after his coverage was revoked. He still owes tens of thousands in past due premiums.

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