Employees get unemployment insurance; they’re often covered through Social Security, Medicare, and Medicaid. Some employers and companies don’t like having employees because they add extra costs, so if they can, they turn everybody into an independent contractor.
Watch: Can Independent Contractors File Workers’ Comp in Colorado?
Are You an Independent Contractor or Misclassified Employee?
You can be considered an employee or an independent contractor under one set of laws, and still be considered the reverse under a different set of laws.
For example, if the Department of Unemployment or the Internal Revenue Service says someone is an independent contractor, they could still be considered an employee under Workers’ Compensation because judges make decisions based on the rules and laws that govern Workers’ Compensation.
There are 5 things we look for to determine whether someone is an independent contractor or an employee under Workers’ Compensation.
1. Are you working just for this individual?
If 100% of your income comes from one individual, you’ll likely be considered an employee. Even if you have your own business but you’re only working for one company, that one factor can often be determinative.
2. Who’s supplying the tools and the equipment?
If you supply your own tools and equipment, you’ll likely be considered an independent contractor.
3. Are you being paid under a business name or your personal name?
If your check is made out to you personally, you’ll likely be considered an employee. If you’re drafting up a bill to a company and they’re paying you based on that name, that tends to be more towards an independent contractor.
4. Can they fire you and not suffer any consequences?
If the employer can get rid of a contract for any reason without any sort of contractual claim, chances are you will be considered an employee, but if you could sue for breach of contract, then you would probably be an independent contractor.
5. Are you working for a homeowner?
When you’re working for a person in their home, for example, lawn care, cleaning the house, childcare, etc., you have to show that you’re doing it full-time before you’re considered an employee.
Get a Free Case Review With Our Colorado Workers’ Comp Attorneys
Employment labels can be misleading, and insurance companies often exploit misclassification to deny valid claims. If you were hurt on the job while working as an independent contractor or 1099 worker in Colorado, you don’t have to navigate the law alone. Contact Kaplan Morrell today for a free, confidential case evaluation to find out if you qualify for benefits.
Call or text us at 970-356-9898; all of our consultations are free and confidential.
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