What Independent Contractors Need to Know About Workers’ Comp

Make sure you’re covered by worker’s comp!

Workers compensation is important to ensure that you’re covered in the event of an injury. However, not all workers are covered equally. While employees are often covered, independent contractors often are not. Sometimes employers even try to claim employees as independent contractors to avoid paying for additional workers’ comp premiums. However, it’s ultimately up to the state’s workers comp board to determine whether or not a worker is considered an independent contractor or an employee.

Here’s what you should consider when determining whether or not you’re an independent contractor or an employee.

Where do your assignments come from?

A key difference between an independent contractor and an employee depends on who is directing the work performed. An independent contractor tends to direct and control how a service is completed. They often determine how the project is completed independently from the source that hired them, whereas an employee is often directed by the source that hired them.

How are you paid?

Typically, an independent contractor is paid by the job, while employees are usually paid by a salary or hourly wage.

Where do your work materials come from?

Equipment and materials are a determining factor as to whether someone is an independent contractor or an employee. An independent contractor usually provides his or her own materials, whereas an employee is often given materials from an employer.

Who are you working for?

Determining who you work for and how frequently you work for someone is a factor in identifying an independent contractor from an employee. Independent contractors often work for multiple companies, performing a single highly skilled task, whereas an employee is trained by and usually receives regular work from the same company.

Make sure you’re covered! Contact Agape Brokers Insurance Agency in Hemet, California for all your insurance needs.

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