Being an independent contractor is a risk when it comes to workers’ compensation. Sadly, the California law is created in such a manner that it doesn’t support people who need workers’ compensation as injured workers if they are working as independent contractors. If you are also an independent contractor who got injured on the job and want to know the answer, can you get workers’ compensation if you are an independent contractor in California? Then read on. Here are some of the answers you might need. 

Are W2 Employees Eligible for Workers Compensation Benefits?

Yes, W2 employees are eligible for getting workers’ compensation benefits from their companies, according to California law. 

Are Independent Contractors Covered Under Worker’s Compensation?

No, independent contractors are not covered under workers’ compensation in general. Many of the employees are improperly classified as independent contractors by the companies.

The difference between being an employee and an independent contractor is vital. If you are not classified as an employee but as an independent contractor, the insurance company might deny your claim. 

What Workers’ Compensation Benefits You Will Get as an Employee?

If you are classified as an employee and not an independent contractor, your employer will probably take care of the following in case of a workplace injury:

• They will pay for workers’ compensation insurance for you
• They will pay some of your Medicare taxes and Social Security
• Also, they will need to ensure compliance with labor and discrimination laws for employees

The Hack Used by Employers

If you are an employee who has been given independent contractor status, you need to be cautious. Many employers give this status and use it as a subterfuge to avoid employee status. It means that the employer might falsely claim that you are an independent contractor so that they can avoid paying you workers’ compensation benefits. This hack is so common that it’s even mentioned in California Labor Code 2. 

How Can You Get Help?

If your employer had given you an independent contractor status when you were an employee, the legal system could help you. You need to provide evidence so that the court can determine that you were an employee. If that happens, you will get workers’ compensation benefits, and you will also be able to file a wage and hour lawsuit for unpaid wages, failure to offer meal and rest breaks, and even overtime. 

How an Employee Differs from an Independent Contractor?

There are several differences between an independent contractor and an employee in California. An employee is someone who is in service of an employer with a written or an oral contract, no matter whether it’s unlawful or lawful. An independent contractor in California is someone who works for a specific fee and towards an end result. The employer is only allowed to control the result of the work, not how the independent contractor accomplishes the work. 

Sometimes, the risk of an injury is placed on the person who is doing the work, and sometimes, the risk should be placed on the person who is hiring. 

If a person doesn’t have any control over the work they are hired for, they often don’t have control over the safety while doing the work. In such cases, the person is an employee. 

In contrast, independent contractors choose the benefits and burdens associated with self-employment, have control over work safety, and usually decide the cost of profit vs. safety. 

How Can You Determine If You Are An Employee or an Independent Contractor?

According to the labor code, “Any person, rendering services to another, other than as an independent contractor… is presumed to be an employee.”

The employer needs to prove that you are an independent contractor. If they can’t, you will be considered as an employee. A few factors that can help in making a determination about whether a person is an employee or an independent contractor are mentioned here. 

• How much control an employer has over a person and how they get the work done plays a key role in deciding whether they are employees or independent contractors. 
• Whether the person who is offering services has other tasks that the employer does not need
• Whether the work is a key element in the regular business of the employer.
• It is also essential to know whether the employer is offering the tools and a workplace to the person providing the services.
• Whether the service being rendered by a person requires one to have a special skill.
• Whether the service provider has invested in equipment, materials, and tools essential for providing the service individually or with some colleagues. 
• If the service being offered is usually offered by the employee/independent contractor. 
• Opportunity for profit or loss for the service provider.
• The length of service for which the services are being offered.
• How permanent the working relationship is.
• The method of payment.
• There is no set way to apply all these factors. The weight of the factors mentioned here usually depends on the situation. 

What Will Happen If An Insurer Denies Your Claim on the Basis of Independent Contractor Status

If you have filed a claim for workers’ compensation benefits in California and your claim was denied by highlighting that you are an independent contractor and not an employee, you might have to file an application for adjudication of Claim and Declaration of Readiness to Proceed. Then it will be the insurer’s responsibility to prove that you are an independent contractor and not an employee. 

If the insurance company fails to prove that you are an independent contractor, you will be considered as an employee, and you will be eligible for many benefits like temporary disability benefits, medical treatment, mileage reimbursement, permanent disability benefits, supplemental job displacement benefits, and even death benefits. 

Talk to an Expert

If you are not sure about whether you qualify as an independent contractor or an employee or you want to know more about the benefits you deserve as an injured employee/ independent worker, then you can have a chat with the experts at Laura M. Wilson & Associates Inc. We help you decide how to go about your case, what to expect from your employer and also how to return to work after a workplace injury. 

We provide a wide array of services such as SJDB Service, RTWSP Service, Expert Witness, Vocational Evaluation, Vocational Rehabilitation Counseling Services, and Transferable Skills Analysis. Our vocational rehabilitation counselors will decide which services are right for you and offer a solution that helps improve your situation. To know more about how we can help, you can book an appointment here or call us toll-free on (800) 531-5608.

Reference

https://www.shouselaw.com/ca/workerscomp/independent-contractors/