R.I. Nightclub Owners Say They Didn’t Know Part-Timers Needed WC Coverage

The owners of the Station nightclub say they didn’t know they needed to buy workers’ compensation insurance for the club’s part-time employees.

Michael and Jeffrey Derderian are asking Rhode Island’s state Supreme Court to review a more than $1 million penalty levied against them for failing to have workers’ compensation coverage when the West Warwick club burned down in 2003.

Four employees were among the 100 people killed in that fire.

The Providence Journal reports the brothers argue in newly filed court papers they did not flagrantly disregard the workers’ compensation law.

The Derderians point out they had insurance at another business they ran, which had full-time employees. They say they were under the impression they did not need it at the nightclub, where all the workers were part-time.