Employers and workers’ compensation insurance companies both have a vested interest in minimizing the amount paid out for work-related injuries. Employers must pay higher premiums if there are more claims against them, and workers’ compensation insurance companies maximize their profits by minimizing the compensation they pay to injured workers.
A common ploy by employers and insurers is to deny coverage by alleging that you were not an employee, but an independent contractor. This strategy is used in a wide range of industries, covering a broad spectrum of workers, from sales people to construction workers. It’s important to understand, though, that many of the bases that companies and insurers use to deny coverage are without merit:
- You don’t have to be on the company payroll to qualify for workers’ compensation
- You don’t have to have payroll taxes withheld on your behalf to receive workers’ compensation
- It’s not necessary that you have an office or a locker at any company location to be considered an employee for purposes of workers’ compensation
Here are some of the other tests for determining whether an employee is actually an independent contractor, and not eligible for workers’ compensation.
- The worker must be able to act independently, free of any direction or control by the company paying the bill. The more control exercised, the greater the likelihood of an employer-employee relationship.
- The worker is typically paid for the job, not by the hour or by salary
- A person who provides his or her own equipment is typically considered an independent contractor
- A person is not an independent contractor simply because there’s an agreement designating him or her as such. The nature of the work and the relationship will take precedence over what is alleged in writing.
We handle all workers’ compensation cases on a contingency basis. There will be no attorney fees unless we get compensation for your losses.