Employee or Independent Contractor?

Posted: February 12th, 2016 | Author: | Filed under: Employee Misclassification, Illinois Workers Compensation Attorney | Tags: , , , , , , | Comments Off

employee, contractor, Illinois workers compensation attorneyThe Illinois Workers’ Compensation Act covers only employees. Under Illinois law, there are two categories of workers, employees and independent contractors, and in some cases, an employer may tell suggest or imply to you that you are an independent contractor. This would mean that certain employment laws do not cover you, including workers’ compensation. But, employers are not always correct when deciding who is and who isn’t an employee.

Right of Control

The primary criteria that courts use to determine if you are an employee is the right of control test. The more control your employer has over your work, the more likely you are an employee, and not an independent contractor.

Independent contractors traditionally use their own tools and the employer only controls the result, not the way the worker goes about completing the job. Employees are provided specific direction regarding the time, place, and manner of the work. Employees usually do not use their own tools. For example, if you are required to dress in a uniform or the employer regulates your breaks, you are most likely an employee.

How You Are Paid

Another factor to consider is how the employer compensates you. Employees typically have an hourly rate or a set salary. Payment is made on a regular basis, typically, weekly, bi-weekly, or monthly.

Independent contractors are more likely to be paid based on an agreed-upon sum for the job, or on an hourly rate. Independent contractors invoice for the amount due to them on a monthly or weekly basis.

If you punch a clock, are paid based on an hourly rate, and are not required to invoice the employer, you are most likely an employee.

Why It Matters

The distinction between being an employee and an independent contractor is important for many reasons. Under workers’ compensation laws the employer does not have to pay workers’ compensation insurance for independent contractors. If you are an independent contractor and are hurt on the job, you cannot collect workers’ compensation from the employer’s insurer. It is up to you to have your own disability insurance policy.

Employees are required to be covered by workers’ compensation insurance. If an employee is hurt on the job, his or her medical bills can be taken care and missed pay can be at least partially compensated.

If you have been injured while performing your job, you need to speak with an experienced and knowledgeable Cook County workers’ compensation attorney right away to protect your rights. Call the Law Offices of Frank J. Discipio at 630-574-2288 to schedule a consultation. You may only have a short time to take action.

 

Source:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2430&ChapterID=68

 


Employee Misclassification: Employee or Independent Contractor?

Posted: May 13th, 2014 | Author: | Filed under: Employee Misclassification, Workers Comp | Tags: , , , , , , , , , | Comments Off

employee misclassification, independent contractor, employee, employer, workers' compEmployee misclassification impacts workers’ compensation benefits. When an employer makes the effort to classify an individual as an independent contractor, the employer no longer retains the responsibility of covering workers’ compensation coverage for that person. Employee misclassification has become an increasing problem in the trucking industry and construction industry, not just in Illinois, but across the country, when employees might only learn too late that an employer has misclassified their role with the company.

If an employer forces you to change your worker status but keep the same job responsibilities, you could be exposed to major risks. Illinois legislators outlined the importance of properly classifying an employee in the Employee Classification Act of 2008, when misclassification of construction employees removed benefits for those workers. After that Act was implemented, the Department of Labor took on the responsibility for investigating claims of misclassification. Those employers caught trying to save money by listing construction or trucking employees as independent contractors can be subject to fines.

Under workers’ compensation guidelines, it must be clear that an employee and employer relationships exists. The term “employee” is rather broad, but the following factors are typically investigated in a case alleging misclassification:

  • How the worker was paid;
  • Who set the ground rules for the terms under which work was completed;
  • What skills were necessary to complete the work; and
  • Who was responsible for providing equipment, tools, and materials for the job.

Independent contractors will retain control over most of these factors and he or she will work off of a bid system, while an employee is governed by the employer’s decisions.

Being misclassified has dangerous ramifications for employees who believe they are protected under workers’ compensation. If you have been injured on the job, you need to contact an Illinois workers’ compensation attorney.