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Independent Contractor vs Actual Employee

January 30th, 2015 at 11:59 am

independent contractor or employee, Illinois workers compensation lawyerMore and more companies are hiring independent contractor to perform the work that was once done by regular employees. This is done to cut down on costs. By hiring a contractor, the company avoids having to pay for health insurance, payroll taxes, unemployment insurance, workers’ compensation insurance, and other employee costs dependent on what the company offers or is required to cover an employee for.

If an employee is injured on the job, they are covered by the company’s worker’s compensation insurance and receive compensation for medical expenses and lost wages. They may even be entitled for monetary compensation for their injuries based on the severity of the injury. Typically, if an independent contractor is hurt on the job, they are not covered under workers’ compensation and would not be entitled to any of the same compensations an employee is covered under.

The hiring of independent contractors has become somewhat of a gray area and in many situations, just because an company has labeled someone an independent contractor, under state or federal laws, they may actually be considered an actual employee and entitled to all the same benefits employees of the company receive.

Under Illinois law, there is a list of criteria that determine whether a person performing work for a company is an employee or independent contractor. These factors include:

  • Is the person required to follow the company’s instruction?
  • Did the company provide training to the person to perform the work?
  • Does the company require the person perform the work themselves or can they assign it to others?
  • Does the company set the person’s hours and/or is the person required to work full-time?
  • Is the person paid by the hour (or week) or are they paid once the job is complete?
  • Is the person reimbursed for travel or other business expenses?
  • Did the company provide tools and/or materials necessary for the work to be done?
  • Is there are a contract between the person and the company or are they able to terminate the relationship at will?

If you are an independent contractor and received injuries while working, do not assume that you are not entitled to workers’ compensation because of your employee classification. Contact an experienced Oak Brook workers compensation attorney to discuss your case and determine what compensation you may be legally entitled to.

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