Do I Qualify for Workers’ Compensation if I’m a Contractor?

The workers' compensation program in Ohio is confusing for workers in many cases. Employers in Ohio are required to purchase workers' compensation insurance to cover their employees in case they are injured on the job. This is a type of insurance that covers medical expenses, lost wages, and rehabilitation costs so that a worker doesn't have to deal with financial burdens following an accident. In Ohio, workers' compensation benefits are managed by the Bureau of Workers' Compensation, or BWC; however, not everyone qualifies for workers' comp benefits.

One of the most common questions that comes up concerning workers' compensation is this: "Do I qualify for workers' compensation if I'm a contractor?" The answer to this isn't easy. Our can help with that and other questions like Do I qualify for workers’ compensation as a part-time employee?

Understanding Workers’ Compensation in Ohio - Who is Eligible for Workers Compensation?

Worker's comp exists to protect workers when an injury occurs when on the job. Employers pay for the workers' compensation insurance costs, and it is a 'no-fault' system. This means that a worker doesn't need to prove that the employer was responsible in order to obtain workers' compensation benefits. However, the worker must prove that the injury occurred when they were on the job.

Employers in Ohio must provide workers compensation to their employees. However, independent contractors are not considered employees, and here's where the questions come into play.

Whether a person is legally considered an employee or a contractor determines whether or not they can get benefits through the workers comp system, even if they clearly have a workplace injury. For more information, workmans compensation law firms in Columbus may be able to advise.

Independent Contractor or an Employee: What’s the Difference?

The difference between a contractor and an employee generally lies in how they work. Independent contractors are considered to be a self-employed person; an employee works for someone else. Here are some other distinctions:

• Independent Contractors:

  • Operate as self-employed individuals.

  • Control their own schedule and how they complete tasks.

  • Are paid per job or project, not on payroll.

  • Provide their own tools and resources.

  • Handle their own tax obligations.

    
    

• Employees:

  • Work under the direct control of an employer.

  • Receive regular wages or salary.

  • Have taxes withheld by the employer.

  • Typically use the employer’s tools and equipment.

Industries like trucking, construction, healthcare, and the gig economy often use independent contractors. For example, a traveling nurse that moves from one hospital system to another on a 6-month contract is considered an independent contractor. A nurse who works scheduled shifts for a specific hospital system is an employee.

Why Independent Contractors Usually Don’t Qualify, Even When Injured on the Job

Generally, a contractor does not qualify for workers comp because there is no one paying insurance costs on their behalf. The workers compensation system is designed for employees who work for an employer who pays into the system.

A contractor will need to have their own workers compensation insurance, or they need to rely on their own general liability insurance, business insurance, or health insurance to cover a work related injury.

Exceptions: When a Contractor May Still Qualify

There are a few circumstances where a person who is labeled a contractor might still qualify for workers' comp benefits:

• Misclassification: Sometimes, workers are labeled as contractors when, in reality, their working relationship mirrors that of an employee. If an employer controls when, where, and how the work is performed, provides equipment, and pays the worker like an employee, courts may reclassify that worker. Some employers do this so they don't have to pay.

• Company Coverage for Contractors: Some employers choose to extend workers’ compensation coverage to contractors, especially in industries like construction where risk is high.

• Contractor-Owned Policies: Independent contractors can sometimes purchase their own workers’ compensation policies through the Ohio BWC to protect themselves in case of injury.

Signs of Misclassification

Misclassified employees are more common than most people think. Some of the signs a contractor may function as an employee include:

• The employer sets strict hours and requires attendance at specific times.

• The worker is paid hourly or weekly rather than per project.

• The worker uses the employer’s tools, vehicles, or equipment.

• The worker must follow detailed instructions instead of deciding how to complete the task independently.

For instance, a roofer is labeled a contractor but required to work 40 hours a week using the company’s ladders and safety equipment. In this case, they may actually qualify as an injured employee. In this situation, the worker may be entitled to workers’ compensation even if originally called a contractor.

Alternative Options for Injured Contractors

Contractors or small business owners who do not qualify for workers’ compensation may still have other options to cover medical care, wage loss benefits, replacement income, and more:

• Personal Injury Lawsuits: If a third party (such as another driver, property owner, or subcontractor) caused the injury, a contractor may file a personal injury claim.

• Health Insurance: Contractors often must rely on their private health insurance company to cover medical bills.

• Disability Benefits: Depending on the severity of the injury, contractors may qualify for Social Security Disability benefits.

• Occupational Accident Insurance: Some contractors buy workers comp specifically for on-the-job injuries.

• Commercial Auto Insurance: Drivers who are contractors or a sole proprietor may be able to rely on their commercial car accident insurance if a car crash occurs.

Challenges in Contractor Cases

Workers’ compensation claims involving contractors often face challenges:

• Disputes Over Classification: Employers may fight to maintain contractor status to avoid paying premiums, which are required by Ohio law.

• Burden of Proof: Contractors must gather evidence to show they were misclassified.

• Awareness Issues: Many contractors do not realize they may have been misclassified and therefore miss out on potential benefits.

Because of these challenges, seeking legal guidance can be essential. They can consult on questions such as Do I qualify for workers’ compensation after a car accident on the job?

How an Attorney Can Help - Get a Free Consultation

A workers’ compensation attorney plays a vital role in contractor-related cases. Lawyers can:

• Review the working relationship to determine if misclassification occurred.

• Gather payroll records, contracts, and witness statements to prove employee status.

• File workers’ compensation claims on behalf of injured workers.

• Pursue alternative legal claims if workers’ compensation is not an option.

For workers in Columbus, law firms like Larrimer & Larrimer focus on advocating for employees who may have been denied benefits unfairly. Their experience with misclassification disputes can help injured workers receive the compensation they deserve.