Are Independent Contractors Eligible for Workers’ Compensation?

Why Employment Status Matters

To qualify for workers’ compensation benefits in Pennsylvania, an injured worker generally must show:

• An employment relationship existed
• The injury occurred in the course and scope of employment
• The injury was related to the worker’s job duties

Because workers’ compensation benefits are typically available only to employees, determining whether an employment relationship exists is often one of the most important issues in a claim.

Who Is Considered an Employee Under Pennsylvania Workers’ Compensation Law?

Pennsylvania courts evaluate employment relationships on a case-by-case basis.

Some of the factors commonly considered include:

• The employer’s right to hire the worker
• The employer’s right to terminate the worker
• The employer’s ability to direct how the work is performed
• The employer’s right to control the worker’s activities

In general, the more control a company has over a worker’s day-to-day activities, the more likely the worker may be considered an employee rather than an independent contractor.

What Is an Independent Contractor?

An independent contractor is typically someone who operates independently and is not subject to the same level of control as an employee.

Independent contractors often:

• Set their own schedules
• Control how work is performed
• Use their own tools or equipment
• Work for multiple clients
• Operate their own business

However, these factors are not always clear-cut. Many workers are classified as independent contractors even though the reality of the working relationship may resemble traditional employment.

Does a Contract Determine My Employment Status?

Not necessarily.

A contract that labels someone an independent contractor is only one factor courts consider. Likewise, receiving a 1099 tax form does not automatically mean a worker is an independent contractor for workers’ compensation purposes.

Pennsylvania courts look at the entire relationship between the worker and the company rather than relying solely on labels or paperwork.

The Importance of Employer Control

One of the most important factors in determining employment status is the employer’s right to control the work.

Questions that may be considered include:

• Does the company tell you when to work?
• Does the company control how the work is performed?
• Are you required to follow company procedures?
• Can the company discipline or terminate you?
• Do you perform work that is part of the company’s regular business?

The greater the employer’s control, the stronger the argument that an employment relationship exists.

Construction Workers and Misclassification

Construction workers receive additional protections under Pennsylvania’s Construction Workplace Misclassification Act (CWMA).

Under the CWMA, a construction worker may only be classified as an independent contractor if specific legal requirements are met.

Generally, the worker must:

• Have a written contract
• Be free from control or direction in performing the work
• Be customarily engaged in an independently established trade, occupation, profession, or business

The law was designed to prevent employers from improperly classifying construction workers as independent contractors to avoid workers’ compensation obligations.

What If I Was Misclassified?

Worker misclassification is more common than many people realize.

If you were injured on the job and told you are not entitled to workers’ compensation because you are an independent contractor, you may still have a claim.

An attorney can review:

• Your work duties
• Your schedule
• Your compensation structure
• Your relationship with the company
• The amount of control exercised by the employer

to determine whether you should be legally considered an employee.

Talk to a Pennsylvania Workers’ Compensation Lawyer

Being classified as an independent contractor does not automatically prevent you from receiving workers’ compensation benefits. Pennsylvania law looks beyond contracts and job titles to determine whether an employment relationship actually exists.

At Stern & Cohen, our Pennsylvania workers’ compensation attorneys help injured workers evaluate employment status disputes and pursue the benefits they deserve. If your claim has been denied because of an independent contractor classification, contact Stern & Cohen today for a free consultation.

FAQs