Workers’ compensation benefits are mainly for actual employees to help them deal with the expenses of an injury at work. Therefore, you may not be covered if you are a self-employed worker. But you can dispute your eligibility if you are listed as an independent contractor whereas you are an employee. California workers compensation laws are sometimes complicated and could be challenging to navigate without proper legal guidance. That is why at The Workers Compensation Lawyer Law Firm, we offer help and advice to workers in Los Angeles to help them obtain the much-needed financial compensation in the event of an injury or illness at work. Our goal is to protect your rights and ensure that you receive the much-needed financial support when you need it the most.
Who Qualifies for Workers Compensation in California
Workers’ compensation insurance is coverage purchased by employers to cover the costs after a workplace injury. It is mandatory in California, especially for employers. California employers must ensure that their employee’s working environments are safe and conducive. They must also foresee work-related injuries and seek ways through which injured employees are receiving the adequate medical intervention and quality care they need until the injured can resume work. That could be very expensive for employers, especially in the event of a catastrophic workplace injury. That brings the necessity of workers compensation coverage.
Under the workers compensation program, employers purchase insurance policies for all their employees and make prompt payments. It ensures that the insurance provider will pay for all medical expenses and other costs after a workplace injury/illness. However, it leaves contractual and self-employed workers out of the coverage. The law requires self-employed workers to purchase insurance coverage to enjoy protection under the workers comp program. The exception is for roofers, who must carry a worker’s compensation insurance if their employer does not cover them.
Job-related accidents, injuries, and illnesses are rampant in California. That should cause concern for employees who might not have insurance under the workers comp program. Work-related injuries can be devastating, costing a lot of money to treat and leaving you out of work for a very long period as you recover. Other than costs for treatment, you want to be sure that you can meet your basic needs and those of your dependents. That might not work if you are not covered against workplace injuries. Knowing what you need to do if you are a self-employed worker is essential to protect yourself against any eventualities as you carry on with your day-to-day activities.
After a work-related injury, many employees face a challenge in pursuing compensation, whereas their employers have not purchased coverage for them. Some employers will try to avoid the costs involved with purchasing insurance policies for all their employees. Thus, they list some of their employees as self-employed or independent contractors, while those employees are actual workers in the real sense. In that case, your employer will have violated the law and could face serious criminal charges.
But how do you know where you belong? Many employees do not know where they belong until it is too late. The law requires employers to list every employee they hire as a permanent or independent worker, based on their job specifications. But if you only work for yourself, you automatically fall under the self-employed category. For instance, if you are working for an employer, and your employer issues you with form 1099 instead of W-2, it means that your employer considers you an independent contractor. That automatically should mean that he/she has not purchased workers compensation coverage for you. Again, if your employer does not withhold any amount from your paycheck, he/she considers you an independent worker.
If you have an EIN, you are self-employed and should cover yourself against workplace injuries. But if your employer provides the terms of your service delivery, gives you the tools and space you need to work, and controls how you render the services, you are an actual employee. Thus, your employer needs to have purchased workers compensation coverage from you from the start.
Do not wait to discover your employment situation after an injury at work. Find out in good time and take the necessary measures so that you’ll receive compensation if you fall ill or incur an injury at work. For legal help and more information about workers’ compensation, contact an experienced workers compensation lawyer.
Steps To Take If You Are Wrongly Classified as Self-Employed
As mentioned before, many employers avoid the financial obligations involved with listing all their workers as actual employees. For example, the law requires your employer to purchase workers compensation coverage for you and pay it every month. That is why some employers wrongly classify some of their employees as independent contractors. The problem is that you will want to file a claim for benefits under workers compensation benefits in the event of a workplace injury. But since you are not listed as an employee of the company you work for, you might miss out on the compensation you truly deserve.
But all is not lost. The law makes it illegal for employers to classify their employees as independent workers while they are actual employees in the real sense. Even part-time workers are considered actual employees and must have a policy under the workers compensation scheme. Thus, you can file a lawsuit against your employer for wrongly classifying you and denying you the right to claim compensation under the workers compensation scheme.
You could need the help of a skilled workers compensation lawyer to help you prove your status and legally represent your right to receive benefits after an injury. Your attorney will consider several factors, including the nature of your job and the terms of your employment, to determine your eligibility for workers compensation benefits.
However, note that if you are not covered under the workers compensation scheme and incurred a workplace injury, you have a right to sue your employer for your injuries. The only issue with this is that the success of your claim will be based on negligence. You will be required to prove that your employer's negligent actions or omission caused your injuries in a civil court. If successful, the court will grant all your damages incurred in the workplace accident, monetary and non-monetary. Your attorney will advise you on the right course of action to take, depending on the details of your case.
Note that after a workplace injury and you file a workers compensation claim, your employer has the burden of proof to demonstrate that you are not an actual employee but an independent contractor. Therefore, your employer will be in trouble if he/she has misclassified you as an independent worker and not as an actual employee. California law does not consider the number of hours you have worked in the company to determine the type of employee. Even part-time workers must have insurance against workplace injuries. If you work for a particular company, California law presumes that you are an employee unless the employer refutes the assumption with actual proof.
Also, note that employers who fail to purchase workers compensation insurance for their employees violate the state law and could face prosecution. It is a criminal offense for an employer to fail to buy coverage for his/her employee. The court can even stop their business operations through a court order, a violation of which could be punished by a maximum of one year in jail and a fine of $10,000.
It is also a criminal offense for employers to fail to make regular payments towards every workers compensation coverage they have purchased for their employees. If found guilty, a court could order the employer to pay double what they would have paid in premiums towards the coverage for the period they illegally failed to submit payments. It will be worse for the employer if it is established that he/she has not submitted payments for all the employees in the company.
If your employer did not insure you, and you have a valid workers compensation claim, your employer can be fined $10,000. You can also sue them in a civil court for compensation for all the damages you incurred through the workplace injury.
What if You Are, Indeed, Self-Employed?
You’ll only have an issue with your employer if you are eligible for workers compensation benefits, but your employer has not purchased insurance for you. However, if you are an independent worker, it is vital to determine what you must do to protect yourself against work-related injuries and illnesses.
Workplace injuries occur when you least expect them. The sad bit is that they leave you financially drained and sometimes in debt. Medical care is expensive, and the cost increases with the seriousness of an injury. For instance, if you have hurt your back badly because of a severe slip-and-fall accident in your workplace, it could leave you in serious debt if you do not have medical coverage for that kind of injury.
Therefore, it makes sense to obtain workers compensation insurance even if you are an independent contractor. It will provide you with medical benefits that will take care of your injury until you fully recover. The compensation will also take care of your essential and dependents’ needs until you can engage in gainful employment.
Every worker in California deserves coverage like that, despite how dangerous or safe your working environment is. Anyone can incur an injury at work, even after ensuring that you have taken the necessary safety precautions. However, roofers must buy workers compensation coverage for themselves due to the risk of injury involved in their working environment.
If you are a construction contractor, you may want to know if your general contractor has purchased workers compensation coverage for you before buying one for yourself. Accidents are pretty common in construction sites and similar working environments. General contractors take precautions early enough to ensure that they are well-covered in the event of an accident. They do this not just for your protection but to protect themselves against lawsuits that could emerge after an accident on the construction site. Employers and subcontractors could lose a lot more than the cost of purchasing insurance policies for their employees.
Some employers prefer to engage independent contractors already covered under workers compensation to avoid unforeseen problems in a workplace accident. If that is the case, you might want to find out how you can qualify for benefits under this program or how else you can cover yourself against workplace injuries before the company can contract your services. With the right coverage, you’ll receive compensation after a workplace injury, just the same as actual employees of that company.
However, note that California law only allows individuals to purchase workers compensation coverage if they render services in a high-risk industry, like the construction industry. If not, you might have to seek alternative ways to cover yourself against the costs that come with a workplace injury. It would help if you sought the advice of a workers compensation lawyer to determine the right course of action to take in your unique situation.
The Need for Workers Compensation Insurance for Self-Employed Workers
The cost of insurance is high in California. That is why many employers and employees are quick to dismiss its necessity to avoid incurring extra costs. It is the reason why most employers will classify their employees as self-employed. But the benefits of having insurance coverage go beyond its costs. That is the bit many people do not take time to think about. Imagine how much you could lose if you paid for your workplace injury expenses out of your pocket?
Thus, workers compensation is almost a necessity, even for independent contractors. If you can purchase coverage for yourself, it will give you peace of mind wherever you go to work, that in the event of an accident at work, your expenses will be covered by your insurer.
For most self-employed workers in California, the need for workers compensation insurance is due to the high costs that come after an injury. Depending on the nature of work you do, an injury at work can be minor or devastating. When thinking about insurance, it is always necessary to consider the worst-case scenario. For instance, if you work in a factory, imagine the worst kind of accident you could be involved in. How much would your treatment cost? How long will you need to remain in a hospital or at home to recover, or before you can finally work again?
Workers’ compensation covers your medical expenses and continues to protect you until you have fully recovered. It means that you will never have to worry about your pending bills or your dependent’s basic needs until you can work again. If you incur a permanent injury, you might be covered for a much more extended period until you can engage in gainful employment. The costs of medical treatment alone are high, especially if you incurred a catastrophic injury. It will cost you more than you ever paid for the insurance.
Remember that you will lose time out of work, which translates to lost wages. Sometimes you might lose your ability to perform in your current employment and need new training in another field. All these costs are covered under workers compensation.
The other need for workers compensation insurance for self-employed workers is to fulfill the terms of their contract. Some companies have a specific requirement for all their workers to carry an insurance policy, including a workers compensation coverage for independent workers. That way, businesses can protect themselves in case the worker incurs an injury. The insurance company will cover an insured worker, and the employer will not be held responsible for their treatment and upkeep until recovery.
How You’ll Benefit in the Event of an Injury
There are mainly two ways in which employees are injured in their workplace; through an illness or injury, that occurs after continuous exposure to a dangerous working environment or after an accident in the workplace, where one or more employees are injured. In any event, you need to know that you are eligible for workers compensation benefits.
As a self-employed worker, you have a right to claim full benefits as provided under the workers compensation program, just the same as a permanent employee. The program treats everyone the same, whether you use a personal policy or one purchased by your employer.
It means that you are entitled to various types of benefits if you incur a work injury. First, you’ll receive medical benefits to cater to your medical needs. The amount of money in medical benefits you’ll receive will be based on the nature and severity of your injury. Take note that some injuries heal faster than others, while other injuries will require more extensive treatment and expensive medication. The goal here is to have enough money to cater to your medical needs right after the injury until you fully recover.
However, the injury must be work-related for your compensation claim to be a success. If it was an injury that happened over a while, you may need a comprehensive medical report from your doctor explaining how the injury occurred and what could have caused it. Your employer and the insurance company will also conduct an independent investigation just to be sure that your injury is indeed work-related. If an accident happened in your workplace and you were injured, your employer would rule out certain factors like negligence on your part to approve your claim. Remember that workplace injuries do not always occur within your office or workplace. You might have incurred an injury while running a work-related errand.
Once you have incurred an injury or have discovered the injury, you should start the process right away. That way, you’ll receive benefits in good time to cater to your medical and personal needs. The law allows you to apply for $10,000 medical coverage right after filing your workers compensation claim so that you’ll have money for emergency medical services and other medical-related needs that might not wait until your first payout.
You are also entitled to lost income benefits to help you cater to your needs for the period you’ll not be working and earning a living. You may need a few days, weeks, months, or even a year to recover, depending on the nature of your injuries. Within that period, you will still have bills to pay, cater to your personal needs and the needs of your dependents.
You could also apply for disability benefits if the injury has rendered you incapable of performing your daily chores. These benefits could be temporary or permanent, depending on the severity of the matter. You’ll receive temporary disability benefits if your injury is not severe and might heal soon. You’ll stop receiving the benefits as soon as you can go back to work.
You will receive permanent disability benefits for a little longer or even for a lifetime. Some injuries do not heal completely, while others take a much longer time.
It is advisable to work alongside a competent workers compensation lawyer so that you're not missing out on the benefits you truly deserve.
Find a Competent Workers Compensation Lawyer Near Me
If you’re a self-employed worker in Los Angeles and are worried about what would become of you if you incurred a workplace injury, you can also benefit from the workers comp program. First, determine that you are indeed an independent worker and your employer has not insured you. Then obtain workers compensation coverage for yourself, and make prompt payments. That way, you will receive enough benefits to cater to your medical and other needs after an injury at work. At The Workers Compensation Lawyer Law Firm, we offer advice and guidance, depending on your situation. We’ll also legally represent you so that your claim is a success. Call us at 424-501-9228, and let us study the facts of your case.