If you are injured while working, you may expect workers’ compensation to cover your medical treatment and some of your lost income. But what happens if the company that hired you considers you an independent contractor?
Generally, true independent contractors are not covered by a company’s workers’ compensation insurance. However, being called an independent contractor does not automatically make you one under the law. If you were incorrectly classified, you may have workers’ compensation rights even though your employer told you otherwise.
What Is an Independent Contractor?
Independent contractors generally operate their own businesses and have more control over how they perform their work. They may work for multiple companies, set their own schedules, provide their own tools or equipment, and decide how to complete a project.
An employee usually has a different relationship with the company. The employer may control the employee’s schedule, duties, methods of performing the work, and other details of the job.
The distinction is important, but it is not always obvious. A company cannot necessarily avoid its responsibilities simply by putting “independent contractor” on a contract or paying someone as a contractor.
How Do You Know Which One You Are?
The actual working relationship matters. Depending on the circumstances and the law that applies, factors may include who controls your work, whether you can work for other businesses, who provides your equipment, how you are paid, and whether you operate an independent business.
Consider someone who receives a 1099, but reports to a supervisor every morning, follows a company-set schedule, uses company equipment, and is told exactly how to perform the job. Those facts may raise different questions about worker classification than someone who runs an established business, sets their own hours, and takes on projects for multiple clients.
A contract is part of the picture, but it may not tell the entire story.
What Happens If You Are Injured?
If you are genuinely an independent contractor, you generally cannot receive workers’ compensation benefits through the company that hired you. You may need to look to your own insurance or other potential legal remedies after an injury.
The situation can be different when a worker has been misclassified.
For example, you might have been told that you were an independent contractor even though your working relationship had many characteristics of employment. If so, you may have grounds to challenge that classification and seek benefits that would have been available to you as an employee.
That can include coverage for medical treatment and, when applicable, benefits related to lost wages.
Why Does Classification Matter?
Worker classification can affect more than workers’ compensation. Depending on the circumstances, being improperly classified can also affect rights involving wages, overtime, unemployment benefits, and other employment protections.
If you were injured, do not assume that a 1099 or independent contractor agreement ends the conversation. Keep copies of your:
- Contract
- Invoices
- Payment records
- Schedules
- Work instructions
- Text messages
- Emails
- Other documents showing how you actually performed your job
Those details may help an attorney determine whether your classification accurately reflected your working relationship.
Get Answers About Your Rights
A workplace injury can be difficult enough without trying to determine whether you legally qualify as an employee. If you were classified as an independent contractor and suffered an injury while working, an employment attorney can review the circumstances and explain whether workers’ compensation or other legal protections may apply.
We can help you understand your options and determine what steps may be appropriate for your situation. Contact us today to schedule a consultation.
