Most people who get hurt or sick on the job have workers’ compensation insurance coverage through their employer. In theory, this coverage provides benefits to help lessen the financial impact of a work-related injury. This may include reimbursement for medical expenses, partial wage replacement in the event of a temporary disability, and long-term partial wage replacement. For a permanent disability, it may also include services such as job retraining.
However, these benefits are only available under state law to people who are considered employees. Experienced workers’ comp attorneys know that determining your legal status as an employee could be challenging. Here is a brief overview of the legal and practical relationship between independent contractors and workers’ compensation in Santa Ana, as well as guidance on how you may prove that you are an employee according to the law.
Under California state law, every company in most industries that has at least one part-time or full-time employee must provide workers’ compensation coverage to all of their employees, either through a private insurance provider or the California State Fund. Notably, unlike some other states, California requires construction industry employers to provide workers’ comp coverage to their employees.
To operate lawfully in the state, all contractors with an active license issued by the California Contractors’ State Labor Board (CSLB) or who wish to reactivate their CSLB license must provide either a Certificate of Workers’ Compensation Insurance, a Certificate of Self-Insurance, or a signed exemption affirming that they have no employees working for them. Santa Ana independent contractors working in industries such as HVAC, roofing, and concrete services must have workers’ comp insurance or be suitably self-insured, regardless of whether they have any employees.
Thanks to the passage of AB 5 into state law, workers are assumed to be employees unless they fulfill all three criteria of the ABC test. These criteria determine if workers legally qualify as independent contractors and are therefore not owed workers’ comp insurance coverage by their employers in Santa Ana. First, the worker must not be subject to any control and direction from the person or company they work for. This must be evident in a signed contract and while they perform the work.
Second, the worker must perform work that falls outside the normal business scope of the person or business who hired them. Likewise, no other employee of the hiring entity may perform this same job duty. Third, the worker must be customarily engaged in a relevant independent trade or business, meaning that as an independent contractor, they must regularly perform the kind of work they are now contracted to perform for the hiring entity.
Working as an independent contractor could have many benefits compared to traditional salaried or wage-based employment, but it also has some drawbacks. A major disadvantage is that an independent contractor, as defined by California state law, may not have access to workers’ compensation coverage in the event you are hurt or become sick on the job.
However, you may still have options for financial recovery after a work-related injury or illness. One of our experienced legal professionals could help you pursue these benefits. Call us today to get answers to your questions about independent contractors and workers’ compensation in Santa Ana.
