National Independent Contractors Association

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The National Independent Contractors Association, or NICA describes itself as an alliance of independent contractors. It was founded in 1995 as a corporation by Thomas McGrath, a former contractor in the transportation industry. According to NICA's own website, its purpose is to provide services giving administrative support to independent contractors. Among other activities, NICA has been involved in the providing of services to bicycle messengers. .

[edit] Controversy and Criticism

Whistle-blower bicycle messengers are credited with helping bring to light NICA practices involving false & forged documentation & misrepresentation, and at least 47 cases of blatant insurance fraud that victimized the publicly funded Workers Comp programs in many localities.

According to the Chicago Reader, NICA has contracted with several bicycle messenger services to administer the payroll of such firms, and provide accident and liability insurance for couriers. In exchange for this service NICA deducts funds from the pay of cyclists and drivers. This led to an intense,"Stop NICA" campaign now undertaken by several US Atttorney General Offices across the United States in the form of active investigation & criminal charges against most NICA executives.

In the same article, McGrath and NICA President Thomas McGrath was indicted by the state of California on 50 counts of conspiracy and fraud. California v. NICA states that workers comp claims filed by NICA were illegitimate because the couriers didn’t work for that organization. In 1996 McGrath pleaded guilty to similar fraud charges in a federal court in Boston.

[edit] External links

  • LA Times May, 2006 - 8 Top NICA Executives including Convicted Felon Thomas Mcgrath charged with intentionally defrauding Worker Comp Programs of over $600,000.00.