Independent Contractors and Illinois Workers' Compensation
The general rule is that you need to be an employee to be eligible for workers' compensation benefits. However, the definition of employee is complicated. Just because your employer tells you that you're an independent contractor, doesn't mean you can't get workers' compensation benefits.
1. Employee vs. independent contractor
The difference isn't always clear. There are many factors to consider, including whether you have taxes taken out of your pay check, whether you can come and go as you please or if you have a schedule, whether you have a uniform, whether you have tools or other equipment given to you, and how much instruction your employer gives you in performing your job. Basically, the more control your employer has over you, the more likely you are to be considered an employee.
2. Your employer doesn't get to decide
It's not up to your employer to decide whether you are an independent contractor for the purposes of workers' compensation. They may tell you you're ineligible, but just because a piece of paper labels you as an independent contractor doesn't mean it's the case. If there is a dispute, the Illinois Workers' Compensation Commission will decide based on the factors listed above.
3. How an attorney can help
The law in this area is designed to prevent employers from avoiding the workers' compensation insurance requirement. However, they may try to avoid it anyway. If you believe you are treated as an employee, an attorney can help you prove it.
We are workers' compensation attorneys that help people with Illinois work injuries anywhere in IL via our statewide network of attorneys. Contact us and we will answer your questions or find the right lawyer for your situation.
I have a question about workers' comp liability and home renovation. I am a homeowner and had a handyman recommended to me to paint my home and install a kitchen tile backsplash. I am meeting with him on Friday but strongly suspect that he is a one-man operation and does not carry any workers' compensation insurance. If he injures himself while working on my home, am I liable for his medical care and lost wages?
You are only liable if you are negligent and that wouldn't change if he had wc insurance or not.
If a company hires independent contractors and have 1099s for them; the company states in their contracts to the IC that they can choose their own hours and place of work; no supervision is contemplated by the company although the IC must abide with the company's guidelines; the IC is not required to report to the company's office at any specific time; the IC may choose the time and manner for performing each part of the work according to their own routines and schedules, independent from the company's operations; the IC must furnish all materials and equipment to perform their services; the IC bills the company for the services performed; the IC may work for other companies; and the contract states that as an Independent Contractor they agree that work related injuries will not be covered by the company.
Will the company have to pay Workers' Compensation premium for the Independent Contractors at audit since all of the ICs are individuals and will not have purchased WC coverage; even if they did, they could exclude themselves?
If a company hires independent contractors and have 1099s for them; the company states in their contracts to the IC that they can choose their own hours and place of work; no supervision is contemplated by the company although the IC must abide with the company's guidelines; the IC is not required to report to the company's office at any specific time; the IC may choose the time and manner for performing each part of the work according to their own routines and schedules, independent from the company's operations; the IC must furnish all materials and equipment to perform their services; the IC bills the company for the services performed; the IC may work for other companies; and the contract states that as an Independent Contractor they agree that work related injuries will not be covered by the company.
Will the company have to pay Workers' Compensation premium for the Independent Contractors at audit since all of the ICs are individuals and will not have purchased WC coverage; even if they did, they could exclude themselves?
WE REPLY: I have no idea, much better question for an insurance salesman or lawyer.