New Jersey employers are required to carry workers’ compensation insurance for employees injured on the job. While they are not required to carry coverage for independent contractors, the distinction is not always black and white. If you were recently hurt while working and are concerned you are being denied workers’ comp benefits you are entitled to, it is time to speak with an experienced attorney. Employers are often tempted to misclassify employees to avoid providing workers comp insurance benefits. Do not take their word for it. Speak with qualified counsel to assess your situation and determine your rights and options.
What Is an Independent Contractor?
First and foremost, it is essential to have a general understanding of what an independent contractor is. Generally, an independent contractor is a self-employed person outside the employer’s control. In other words, if the employer can only control the outcome or result of the work rather than how it gets accomplished, they are an independent contractor. Another good indication of whether someone is an independent contractor is based on the type of tax forms and returns they utilize. Employees typically receive W-2 forms, while independent contractors receive 1099 forms. Independent contractors are self-employed and, therefore, subject to self-employment tax. You can learn more about those tax differences by visiting the IRS website here.
Independent contractors are usually not entitled to the same rights, benefits, and protections as employees.
Independent contractors may not be covered by:
· Workers’ compensation,
· Minimum wage and overtime laws,
· Employer benefits (e.g., health benefits, 401k, and other retirement benefits), or
· Unemployment insurance.
If you are an employee, you deserve the benefits of that title. Do not allow your employer to unilaterally decide you are an independent contractor and left to deal with mounting medical expenses and lost wages on your own.
New Jersey Independent Contractor vs. Employee
Are you asking yourself, “Does worker’s compensation cover independent contractors?” New Jersey employers are not required to offer the same benefits to independent contractors as they are employers. Because of this, they may attempt to misclassify employees as independent contractors. This happens more often than you might think and ultimately is not up to the employer to decide. If you believe you have been misclassified to deny you rightful benefits, you should seek immediate legal help.
Every state varies on how it determines who is classified as an employee or not. New Jersey uses the ABC test to determine whether a worker is truly an independent contractor:
· The worker operates outside of the employer’s control and direction on how to do the job,
· The work performed is not part of the employer’s ordinary and usual course of business, and
· The worker is typically engaged in an independent business or occupation.
An individual is considered an independent contractor if all three conditions are met. If not, the individual is an employee. A person is presumed to be an employee unless the employer can prove otherwise. In other words, the employer has the burden of showing that a worker is an independent contractor.
If an employer misclassifies a worker, they may be subject to penalties, and the employee will be entitled to the workers’ compensation benefits they should have received.
Are There Any Options Available to Independent Contractors?
If you are an independent contractor, you may still have some options. If you can show that the employer misclassified you as an independent contractor, you may be entitled to workers’ compensation from the business that hired you. Alternatively, as your own “business owner,” you may purchase insurance to cover situations and accidents giving rise to injuries. Finally, depending on the circumstances of your accident and injury, you may be able to file a suit against the employer to recover damages. An experienced workers compensation lawyer NJ can review your case and help you identify your options.
What to Do If You Believe Your Employer Has Misclassified You
Suppose you believe your employer has inappropriately classified you as an independent contractor to avoid providing you with benefits you are entitled to. In that case, you need to seek the guidance of a seasoned independent contractors workers’ comp attorney. At Petro Cohen, we will use our experience to help you obtain the benefits to which you are entitled. Contact us today.
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