A Look at Worker's Compensation Law for Independent Contractors
For employees that work in dangerous and high-risk jobs, like construction and contracting, worker’s compensation coverage is an important safety net for when accidents happen. However, sometimes the law behind worker’s compensation can become complicated and obscured. One situation where the legal underpinnings of worker’s comp become muddied is when independent contractors work side-by-side with general contractors.
Problems arise from the fact that independent contractors are often unable to get their own worker’s compensation. If they are injured when working on a site where a general contractor is also working, their only way of securing health benefits is often to claim that they are an employee of the general contractor. Recently implemented legal guidelines set out three criteria to try to clear up whether or not this relationship exists.
The law states that any independent contractor that is working with a general contractor is, in fact, an employee, unless three distinctions are made:
1. The independent contractor used his own tools, determined his own hours, and took his own approach to the work.
2. The work that the independent contractor performed is not the work typically done by the general contractor; in other words, they are in a different trade.
3. The independent contractor’s work on the site was typical of the type of work that he performs normally as an independent business or trade.
Any deviation from these criteria can be considered grounds for a lawsuit. To avoid messy legal battles, it’s always best to employ subcontractors that are incorporated and have their own insurance.
For more information about licensing and other contracting regulations, contact Arizona Contractor License Center. We provide tests and preparation for obtaining contractor licenses. Give us a call at (888) 738-3175 or visit our website to find out more about our license test services.
- Loading comments...
