We were recently asked by a client who owns a small business whether she is required to maintain workers compensation insurance for independent contractors. The answer is no as long as the job they are performing is truly in the capacity as an independent contractor.
A worker is considered an independent contractor if the following criteria are met: (1) is the worker outside of the control of the employer, i.e. they decide how to do the job and perform it the way they choose; (2) is the work done by the independent contractor perform work outside of the business or tasks that are no ordinary to the business’s; and (3) does the worker have other employment or their own business.
This is a general test, but a more fact specific review must be done to determine whether the worker is an independent contractor. It will also vary based on the state where the worker is employed. You should request an opinion letter from an employment lawyer or from the Department of Labor.
About the Author
Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.
Thomas A. McKinney, Esq. is an experienced New Jersey Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. If you have questions about this article, contact Thomas today by clicking here.
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