Do Independent Contractors Have Rights Under Minnesota Workers’ Comp Laws?

Minnesota has a workers’ compensation system that is designed to make sure employees get coverage for their losses and injuries if they’re hurt on the job. Independent contractors occupy a unique place in the system, however. Is there workers’ comp for independent contractors? A workers’ comp lawyer in St. Paul and Minneapolis explains.

Do Independent Contractors Have Rights Under Minnesota Workers’ Comp Laws?

In general, workers’ comp does not cover independent contractors. At the same time, that doesn’t mean that independent contractors are never eligible. There are a few exceptions, including if you have been misclassified as an independent contractor when you’re actually an employee. More importantly, if you are an independent contractor and have been injured on the job, you do have the option to bring a lawsuit if you’ve been injured under certain conditions. Employees who are covered under workers’ comp can almost never bring lawsuits in these situations, so in that respect, you have more options. Let’s get into it.

Ways You Could Be Eligible

Employer Extended Coverage

Sometimes, employers choose to buy coverage to extend to their independent contractors. If that’s the case, then you would be covered by that employer’s workers’ comp.

Workers’ Comp for Independent Contractors

In addition, as an independent contractor you always have the right to purchase a policy for yourself, and this would cover you for any job injury regardless of who is at fault. If you have bought your own policy, you’re covered in the same way as if it were your employer’s workers’ comp.

Independent Contractors or Employee?

It’s not uncommon for employers to classify workers as independent contractors solely to avoid having to pay taxes and benefits. The question here is whether you are truly an independent contractor or not, and there are some specific things the government will look at in determining whether you actually qualify as independent. Here are some of the most important factors:

Payment

The question here is who decides what your services are worth. Are you deciding and charging someone for your services at a rate you determine, or have they told you how much they will pay you? Are you paid regularly, and does the employer remove any taxes or deductions from your check?

Employees usually don’t decide how much they’re going to be paid, they get paid regularly, and taxes are taken out of their paychecks before they receive them. An independent contractor either sets their own rates or at least negotiates them with the employer and receives full payment with no taxes or deductions removed. As an independent contractor, you would be responsible for paying all your own taxes and would have your own tax ID number.

Control

This is a big one: who controls how you work? It’s not just a matter of saying where a job will be done but a matter of controlling how you work and what you use to do the work. If an employer always tells you where, when, and how to accomplish your jobs, that’s more like an employee than an independent contractor.

An independent contractor has a lot more control over when they choose to work, how they choose to get the job done, and where they choose to spend their time. Obviously, if you negotiate a contract that specifies these terms, that’s different, but contracts are entered into voluntarily and are usually job-specific rather than ongoing.

Whose Premises?

The question here is whether your employer controls the premises where the work is being performed or whether you have your own place of business and control the premises. Obviously if you have taken on a contract to go to a specific job site, that job site may be under the purview of the employer. But if that’s not the only place that you work, and/or if you have your own separate place of business, then you are an independent contractor.

Ending the Relationship

For the most part, an employee can be fired at any time at the will of the employer, provided it doesn’t violate any specific agreements that may be in place through a contract and provided that it is not illegal in other ways (for example, by being discriminatory).

An independent contractor, in contrast, usually has a contract in place for a specific job and would have the right to sue for breach of contract if the employer does not finish it out. At the same time, if you were to suddenly skip out on the job, your employer could also sue you for a breach of contract. If you have legal liability in place in case either of you ends the relationship early, you don’t finish the work, or you don’t get paid what was agreed, then it’s likely you are an independent contractor.

Ownership of Tools

Finally, are the materials and tools that are used to complete the work things that you own personally, or are they owned by the employer and used by you? This could be anything from working tools and construction materials to computers and software. If everything needed to complete the job is being provided by the employer, then you are more likely to be an employee. If all of it or most of it is owned by you personally, that’s the mark of being an independent contractor.

What to Do If You’ve Been Misclassified

Talk to Your Employer Directly

The first step is usually just to talk to your employer directly because sometimes these situations are a misunderstanding. Ask your employer to review how you’re classified and explain why you think you’ve been misclassified. Get an explanation from them, preferably in writing, as to why they have decided you are an independent contractor.

Talk to a Lawyer

Your next step should be to talk with a lawyer. A lawyer can review all the evidence and help you figure out whether you’re being misclassified and then decide on the next steps. Sometimes simply having a lawyer talk with your employer is enough to show them that you’re serious and understand your rights.

File a Workers’ Comp and/or Unemployment Claim

With your lawyer’s help, it could be worth it to file a workers’ compensation claim directly with the Minnesota Department of Labor and Industry. You can also file for unemployment.

Either way, you’ll be explaining that you have been misclassified and treated as an employee but then denied workers’ compensation benefits or been fired due to your injury.

Bringing a Lawsuit

If you’ve been injured on the job and are definitely an independent contractor, you can bring a personal injury lawsuit if your employer is responsible for the injury, for whatever reason. Even if it was another employee who was responsible, you may be able to bring an action against your employer. Talk to your attorney about your options here.

If you’ve been injured on the job, suspect that you’ve been misclassified, or need help with worker’s comp, contact the Atkinson Gerber Law Office in St. Paul and Minneapolis today for help.