Dance Company Faces a Financial Penalty that Threatens Its Existence

November 05, 2010

Founded in Long Island City in 1998, this non-profit professional dance company performs in New York City, tours and teaches domestically and abroad. The founder’s mission is to perform and educate within communities where the content of the work will have the greatest impact, such as for underprivileged youth, immigrants, ethnic groups, adolescents, and dancers.

The organization was faced with a crisis that threatened its existence. The founder received a notice of penalty for a substantial sum of money from the Workers Compensation Board. The sheer size of the penalty would force the dance company out of business. The penalty was issued because the organization had not provided workers’ compensation insurance for its dancers.

The dance company’s founder turned to the Long Island City Business Development Corp. for help, which in turn referred the organization to Farrell Fritz, where Steven Davi volunteered to handle the matter on a pro bono basis.

Steve and and a colleague successfully argued that the organization, as a not-for-profit group, was not required to provide workers compensation insurance for employees who work in a non-manual labor capacity. The case was dismissed by the Workers Compensation Board.