Workers’ compensation is a type of insurance that most employers in North Carolina are required to carry for their workers. It’s a form of no-fault insurance, meaning that injured workers can seek workers’ comp benefits regardless of who was at fault for the incident that caused their injuries. However, in exchange for these no-fault benefits, workers are typically barred from filing personal injury lawsuits against their employers.
Unfortunately, workers’ compensation doesn’t cover all workers in the state. It typically only covers employees, not independent contractors. So, if you are an independent contractor, you likely must seek compensation for your injuries through other means, such as a personal injury lawsuit, which requires you to prove that someone else’s negligence or misconduct contributed to the accident.
Additionally, some employers misclassify their employees as independent contractors. These misclassifications are illegal and can significantly impact the workers’ taxes and ability to recover compensation for on-the-job injuries.
If you suffered an injury while working in Durham, contact Kreger Brodish LLP for a free consultation with a skilled North Carolina workers’ compensation attorney. We’ll help you determine your eligibility for workers’ compensation benefits and walk you through the claims process so you know what to expect from the rest of your case.
Understanding the Difference: Employee vs. Independent Contractor
The first step in determining your eligibility for workers’ compensation benefits is understanding the differences between employees and independent contractors. These worker designations apply to different situations, and determining which category you fall into is essential for seeking the compensation you need after an injury.
Employees
Workers’ compensation is meant to cover employees after a workplace injury. Through workers’ comp claims, employees can get their medical expenses paid and receive a portion of their wages if they must be kept off work while recovering. However, workers’ compensation does not cover intangible losses like pain and suffering.
Some of the defining characteristics of an employee are that they receive regular paychecks with taxes withheld, use employer-provided equipment to perform their work, and work under the direction of their employer. For example, someone who works a 9-5 job, receives a bi-weekly paycheck, and relies on their employer to provide the necessary tools and direction for performing their job is likely an employee.
Independent Contractors
Independent contractors are often not covered by workers’ compensation. However, if their employer’s negligence contributed to the accident, they can seek compensation through personal injury lawsuits filed against them. Through a personal injury lawsuit, independent contractors can seek economic damages like money for their medical expenses and lost wages, as well as non-economic damages, such as money for pain and suffering.
Some of the defining characteristics of an independent contractor are that they determine their own work schedules, are responsible for their own taxes, use their own equipment, and have control over how they perform their work. For example, a worker who brings their own equipment to a job site, works on their own schedule, and doesn’t have someone else directly overseeing their work may be an independent contractor.
How North Carolina Determines Worker Classification
Various agencies have their own criteria for determining whether a worker is an employee or independent contractor. For example, federal agencies like the U.S. Department of Labor and Internal Revenue Service have criteria, and individual states also have criteria, such as those from the North Carolina Department of Labor. However, these criteria generally have the same three core principles:
- Behavioral Control: One of the most important distinctions between employees and independent contractors is how much control their employer has over them and their work. If the employer controls when and how a worker performs their work, such as by providing them with specific work hours and guidance on completing their work tasks, that worker may be an employee. In general, independent contractors have more flexibility in when and how they work.
- Financial Control: Another important distinction is how much financial control the employee has over their worker. Employees typically receive a regular wage based on a salary or hourly pay rate, while an independent contractor may receive project-based payment. Additionally, independent contractors are more likely to have to finance their own equipment, while employers provide equipment for employees to use.
- Contractual Relationship: Finally, there may be a written contract that describes the relationship between the employer and the worker. This contract should detail the length of the relationship, how the worker receives payment, and whether the worker is eligible for certain work benefits. However, this contract alone may not be enough to determine what type of worker you are.
Can Independent Contractors Qualify for Workers’ Compensation?
Under most circumstances, an independent contractor cannot qualify for workers’ compensation in North Carolina. However, there are a few exceptions to this, including if the worker is misclassified as an independent contractor when they are actually an employee. For example, an employer may misclassify a worker as an independent contractor even though the employer exerts significant control over how the worker performs their job duties.
The second exception is for statutory employees. A statutory employee is an independent contractor who is treated as an employee. For example, a subcontractor who doesn’t have workers’ compensation insurance may be covered by the principal contractor’s insurance.
The third exception is for independent contractors who purchase their own workers’ compensation insurance. If you are an independent contractor and pay for workers’ compensation insurance, you can rely on that insurance if you suffer an injury on the job.
Am I Being Misclassified?
If your employer informs you that you are not eligible for workers’ compensation after a work injury because you are an independent contractor, you may wonder whether your employer is misclassifying you. The best way to determine whether your employer is misclassifying you as an independent contractor is to consult an experienced lawyer who has an in-depth understanding of North Carolina’s workers’ compensation laws.
Some questions that may help you determine whether your employer is misclassifying you are:
- Does your employer provide you with instructions for how to complete your work?
- Does your employer require you to work specific hours?
- Does your employer provide you with tools, equipment, or a workspace?
- Are you paid on a regular schedule rather than per completed project?
If you answered “yes” to several of these questions, you may be an employee rather than an independent contractor.
What to Do If You Are Injured on the Job in Durham, NC
If you are injured on the job in Durham, North Carolina, there are a few key steps you should take to protect your legal right to seek compensation for your injuries, whether through a workers’ compensation claim or a personal injury lawsuit:
- Report the Incident: One of the first steps you should take after being injured on the job is to report the incident to your employer. While you should report the incident as soon as possible, you must report it within 30 days to be eligible for most workers’ compensation benefits.
- Seek Ongoing Treatment: Always seek ongoing medical treatment for your injuries until you fully recover or reach maximum medical improvement (the point at which further treatment will not improve your condition). Not only will this benefit your health, but it will also make it harder for the insurance company to dispute your injuries.
- Document Everything: Documenting everything about the accident is key, especially if you have to prove negligence or wrongdoing in a personal injury lawsuit. You should photograph your visible injuries and write down everything you remember about the incident.
- Avoid Providing a Statement: If you are an independent contractor seeking compensation through a personal injury lawsuit, avoid providing a statement to insurance adjusters. Under North Carolina’s contributory negligence rule, plaintiffs cannot seek compensation for injuries they contributed to. Let your lawyer handle the insurer.
- Consult a Workers’ Comp Attorney: The best way to protect your rights is by consulting a workers’ compensation attorney who can help determine your eligibility for workers’ comp benefits.
Why Choose Our Workers’ Compensation Attorneys?
When you work with Kreger Brodish LLP, our attorneys will put their extensive experience to work for you. We’ve handled countless workers’ compensation cases in Durham and understand how to deal with the tactics workers’ comp insurance companies use to deny claims and reduce payouts.
Over the years, our firm has recovered millions of dollars for our clients, including a $100,000 workers’ compensation settlement for a delivery driver injured in an on-the-job accident. Delivery drivers are often treated as independent contractors but may qualify for workers’ compensation if their employers misclassified them.
Our attorneys are also always available to answer your questions. We believe that our best client is one who is informed about their rights, and we’re here to explain your options for seeking the compensation you need.
Contact Our North Carolina Workers’ Compensation Attorneys to Learn More
If you were injured on the job in North Carolina, determining whether you are eligible to receive workers’ compensation benefits is essential. Our experienced team of workers’ compensation attorneys can assess your eligibility and seek the compensation you deserve for your injuries, whether through a workers’ compensation claim or personal injury lawsuit.
Contact Kreger Brodish LLP today for a free consultation with a member of our legal team. During your initial meeting, we’ll review your case, explain your options for seeking compensation, and answer any questions you have about the process.
