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What is the Difference Between an Independent Contractor and an Employee to a Workers’ Compensation Injury Claim?

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Suppose you’ve been injured on the job. In that case, you may have been told or received correspondence from your employer or their insurance company identifying you as an “independent contractor” or that your employer does not consider you to be a traditional employee. This article was written to identify the ramifications of being classified as an independent contractor instead of an employee and to discuss the factors courts consider when determining if a worker is an independent contractor or an employee. More information here

Unfortunately, Pennsylvania law doesn’t provide a bright-line rule for determining if a person is an employee or an independent contractor and requires courts to analyze several factors in making their determination. As the ramifications of a court’s decision may impact you for the rest of your life, it’s important that you retain an experienced workplace accident attorney like those at Our Law Office soon after you’re injured on the job to perform a detailed analysis of your case.

Ramifications of Being Classified as an Independent Contractor or an Employee

Although Pennsylvania law presumes that all workers are employees and places the burden of proving otherwise on the employer, your employer and/or its insurance company are likely adept and experienced in defeating that presumption. As a general rule, it is in an injured worker’s best interest to prove that they were an employee rather than an independent contractor. For example, suppose an accident was your fault and your employer fails to defeat the presumption that you are an employee. In that case, it will probably be liable for both your injuries as well as other injuries and property damage that resulted from the accident under the doctrine of respondeat superior. Additionally, and perhaps more importantly to someone who’s been injured on the job, an employer that successfully rebuts the presumption and proves that you were an independent contractor at the time of the accident is not required to pay you workers’ compensation benefits for your injuries and lost wages.

Factors Considered in Determining if You Are an Independent Contractor

Generally, courts consider three broad factors in determining if you were an independent contractor or an employee at the time of the accident. Specifically, courts analyze the extent to which the employer controlled the worker’s behavior, the extent of control the employer asserted over the employee, and the type of control the employer asserted over the employee.

In determining the extent to which an employer controlled a worker’s behavior, courts consider if the employer controlled the manner and methods the worker used in completing the job. In other words, most actions taken by an independent contractor are usually taken with total autonomy and independence from the control of his employer. Meanwhile, his employer directly and continuously dictates an employee’s actions. Courts often examine if the worker provided his own tools and materials, set his own hours, or used his own technique and approach to solving a task with limited instruction or supervision from the employer when examining this factor.

In determining the extent an employer has exercised financial control over a worker, courts consider if the worker was given total financial control over a task in such a way that he could have realized a profit or a loss, or if he was insured a profit regardless of the success of his work. Courts also look to see if expenses were reimbursed and how the worker was paid; courts are more likely to find hourly and salaried employees to be employees and workers who receive a flat fee for a particular job to be independent contractors.

In determining what type of control an employer asserted over a worker, courts often examine the language in a written employment contract, if one exists. However, regardless of the existence or contents of an employment contract, courts may determine that a different relationship exists based on the parties’ conduct. Specifically, courts examine several factors, including if the worker was provided benefits such as sick pay, insurance, or vacation time. Courts also consider the duration of the employment, often finding “at-will” workers or workers who may retain their position for an indefinite period of time are employees, whereas a worker that is retained for a particular project or for a limited duration of time is more likely to be an independent contractor.

Courts may also consider additional factors not discussed in this article to complicate things further. Thus, if you’ve been injured on the job and suspect that you are an employee but have been labeled as an independent contractor by your employer or their insurance company, you should contact an experienced workplace accident attorney like those at Our Law Office to advocate your status as an employee.

You Need a Smart and Experienced Attorney on Your Side to Assert Your Rights as an Employee. As you can see, determining if you were hired as an independent contractor or an employee is a complicated and very important determination and likely needs an experienced attorney to identify your employment status.

If you’ve been injured on the job and have been labeled as an “independent contractor” by your employer or their insurance company but suspect that you are actually an employee, you should contact the experienced workplace accident attorneys at Our Law Office. They are available anytime, day or night, to provide you with a free consultation regarding your rights.