The very meaning of work has changed over the years and if you are like millions of Americans you are considered an ‘independent contractor’ by your employer. That’s right you aren’t even considered an employee where you work.
While this might seem like semantics, the reality is that there are some very real implications when you, as an independent contractor, are injured at work. As such, you need to know what your rights in this situation are and how to make sure that your employer meets their obligations.
Granted, this might not be the most exciting article you have ever read, but if you are an independent contractor – or are considering becoming one – this is an article you will want to read. As such, here are some tips on how can a contractor overcome an injury on the job.
Workmen’s Compensation
While you might think an independent contractor would be covered by these rules, it depends on the state where you are working at the time. Further complicating the issue is defining who is your employer at the time you were injured. Sure, you are ultimately working for your customer, but aren’t they also your employer?
Some answers to these questions might depend on the terms of your independent contractor’s agreement and in other cases, you might want to get yourself a good lawyer to help. For example, if you were injured while driving you’re your ‘employer’, then you might want to talk to one of the auto accident attorneys at West Coast Trial Lawyers.
Ultimately, the question that needed to be answered is whether you are an employee or an independent contractor. The answer to this will help to determine which company should pay your workmen’s compensation claim – though it might not mean that your ‘employer’ is completely off the hook.
Misclassified Employees
This is a category of workers which has become more common over time. The driver behind this is the ever-increasing number of independent contractors, who on further examination, aren’t really contractors at all.
How can this happen? For starters, some employers try to stretch the envelope when it comes to their employment agreements. This could include hiring someone as a contractor but then stating that the contractor cannot work for anyone else. While the final determination will depend on the rules where the contract is governed, this sort of arrangement does not seem to fit the ‘independent’ in independent contractor.
One reason why companies do this is that they are trying to save money. By classifying workers as independent, the employer is not required to offer insurance, pay withholding taxes, or offer benefits. This can lead to significant savings and as such, have become a common workplace tactic in our post-collective bargaining world.
If you are not sure how your relationship with your employer will be defined, then the best advice is to talk to a lawyer when you are first putting out your shingle as an independent contractor. Doing so will help you to set up your agreement with the correct conditions.
However, if it is too late for this, then you still might want to talk to a lawyer. Even if you haven’t been injured, you want to make sure your agreement will help you to protect you in the case of an accident – after all, no one else is looking out for you.
What are Your Options?
While the specific options available to an independent contractor will depend on the rules in the state where you live and work, there are some things you can do. As mentioned, talking to a lawyer to review your agreement is a good first step; but it is just that a first step.
The next thing that you will want to do is make a claim. Even if it is denied it doesn’t mean that you are at the end of the road as you can always appeal the initial decision. Beyond this filling, a claim shows that you are trying to be reasonable by not bringing a legal action as the first step.
If an appeal doesn’t work, then you might also want to look at the option of claiming long-term disability from the Social Security Administration. This is an option open to all workers if they have paid into the fund and this brings up a key point for an independent contractor – you want to make sure your accounts are in order.
While your ‘employer’ might not be paying insurance and payroll taxes, you should. This can be done either as a sole proprietor or in an incorporated status and given the new tax laws, this probably means converting to an incorporation as the 21 percent tax rate is lower than the rates available to LLCs or sole proprietors.
If all else fails, there is also the option of civil action. However, this shouldn’t be taken lightly and should only be pursued as a last resort.
