Plaintiff injured worker accuses former employer’s fund of inadequate compensation

The Court of Appeals of Virginia has affirmed a decision by the Workers’ Compensation Commission in favor of an injured worker, despite his employer’s lack of workers’ compensation insurance. The Uninsured Employers’ Fund had filed an appeal against the award granted to Jose A. Zacarias Perez, who sustained work-related injuries in March 2022. The appeal was heard on February 24, 2026, and involved arguments over whether Perez’s employer, Gencon, met the legal threshold requiring workers’ compensation coverage.

The case centers around Gencon, a general contracting business owned by Ibnan Johri, which primarily focused on remodeling projects. On March 29, 2022, Perez suffered multiple injuries when a concrete wall collapsed during a project. Subsequently, he filed claims for temporary total disability and medical benefits with the Workers’ Compensation Commission. Gencon did not carry workers’ compensation insurance at the time of the accident, prompting defense from the Uninsured Employers’ Fund.

The crux of the legal argument revolved around whether Gencon employed three or more individuals “regularly in service,” as defined under Code § 65.2-101—a requirement for mandatory workers’ compensation insurance coverage. Deputy Commissioner Kennard initially ruled that Gencon did not meet this threshold because it primarily employed only two individuals: Perez and Nester Lemus. However, upon review, the full Commission reversed this decision based on evidence that subcontractors were frequently utilized in Gencon’s projects.

The Commission found that during several major projects throughout 2021 and early 2022—such as basement remodels and water damage repairs—Gencon regularly enlisted subcontractors like electricians and cabinet installers to complete specialized tasks. Although these subcontractors often worked only briefly on each project, their involvement was deemed integral to Gencon’s operations.

The Court of Appeals upheld this finding by emphasizing that the presence of subcontractor employees on most projects indicated a regular pattern of employment exceeding two people at any given time. This interpretation aligns with Virginia law stipulating that even short-term or periodic employment can contribute to meeting statutory employee thresholds if it constitutes part of an employer’s established mode of business.

Perez is seeking continued disability benefits and reimbursement for medical expenses incurred due to his injuries. The court’s affirmation means he remains eligible for these compensations under Virginia’s Workers’ Compensation Act.

Representing parties included Justin R. Main from Siciliano, Ellis, Dyer & Boccarosse PLC for the appellant (Uninsured Employers’ Fund) and Richard M. Reed from The Reed Law Firm P.L.L.C for appellee Jose A. Zacarias Perez. The case was presided over by Judges Ortiz, Raphael (who delivered the opinion), and Lorish under Case ID Record No. 1598-24-4.