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Contract Labor and Workers’ Compensation

Workers’ compensation is a form of insurance, which offers no-fault protection for illnesses and injuries sustained by employees while in the workplace or in the line of duty. Employers in Arizona, as in most other states, are obliged to acquire workers’ compensation insurance for their employees. So, what if you are not really an employee and are injured whilst working for a company?

More people now than ever are designated as “independent contractors” instead of employees in today’s market. This is partly due to the structure of “gig” labor, but it could also be associated with companies’ desire to minimize expenses by misidentifying employees as independent contractors. Whatever the circumstance might well be, whether or not you are eligible for workers’ compensation as an independent contractor is determined by how you are characterized.

A knowledgeable Phoenix workers’ compensation attorney may advocate for you by claiming that you are an employee, not an independent contractor. Your attorney can then make a compelling argument for incentives. Read on for more information regarding contract labor and workers’ compensation and how you might possibly qualify for compensation.

What Is The Difference Between Independent Contractors And Employees?

There is a fundamental distinction between being an independent contractor and being an employee. Employees are generally afforded significantly more rights than independent contractors, with rules governing compensation, paid vacation, taxes, overtime, and breaks.

Employers might be motivated to misidentify employees as independent contractors since employees are subject to more rights and benefits than independent contractors. Nonetheless, it is not up to the employer to decide if someone is an employee or an independent contractor — that is a matter of federal tax law.

The Internal Revenue Service (IRS) taxes firms variably depending on the categorization of their employees. As a result, even if a corporation claims you are an independent contractor, if the IRS believes you are an employee, you are an employee.

The IRS considers three categories of factors while evaluating if somebody is an independent contractor or employee:

  • Behavioral control
  • Financial control
  • Relationship

Whereas these are the elements that define your employment status for federal income tax reasons, they are also the criteria that employers and insurance companies must consider when assessing workers’ compensation entitlement. If an employee is proven to be misidentified as an independent contractor, the company may face statutory penalties.

If you are uncertain about your work status, you should consult with a local lawyer to assess your circumstances and establish what kind(s) of contention(s) you might well be entitled to submit. Whenever it pertains to preserving your legal rights, you must not make presumptions about whether you are an independent contractor or employee.

Seek Legal Counsel from an Experienced Attorney

Suppose you are an independent contractor who sustains an injury and gets sick at work. In that case, you do not have to accept that you cannot obtain workers’ compensation benefits for your illness or accident. As Per Arizona law, you may have been misidentified, and if so, you might well be eligible to lose income, hospital bills, and disability benefits.

The Phoenix Workers’ Compensation Attorneys at Snow, Carpio, Weekley can collaborate with you to ensure you obtain the compensation you deserve. 

Call Today! (602) 532-0700

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