The complex matter of independent contractors and workers compensation coverage often confuses those who are unsure of how to classify their workers. In general, the way a worker is classified is dependent upon the work they perform, not the employer’s identification. In order to avoid employers wrongly classifying employees as independent contractors, there is a set of guidelines that determines whether or not the worker requires workers compensation coverage.
- Lack of Direction & Control – Since Independent contractors work well, independently, they perform their duties based on the rules of a written contract and without the direction of the employer paying the bill.
- Hiring & Pay – Independent contractors receive their pay by the job performed whereas employees receive wages based on either hours worked or on a salary basis.
- Equipment Provided – By determining who provides the equipment, you can distinguish whether or not someone hired is an independent contractor.
- Character of Work & Training – A worker is classified as an employee when they are trained by the company and perform regular work at the location whereas as independent contractor works for multiple companies and performs a single job.
- Written Agreements – Written agreements don’t necessarily classify a worker as an independent contractor. The above requirements are the only determining factors.
Steve Wilk Insurance strives to provide Illinois residents with outstanding, personalized insurance services. Contact us today for all of your Lombard, Illinois business insurance needs.