The Difference Between an Independent Contractor and an Employee
After an injury at work, it is important that you establish whether or not you are an employee or independent contractor. Iowa law prohibits independent contractors from collecting workers’ compensation benefits; therefore, the classification is critical to your case. In most cases, defining the line between contractor and employee is simple. But, for some, it can be more difficult to determine what constitutes an employee and what makes a worker a contractor.
Indicators You Are an Independent Contractor
You may be classified as an independent contractor if:
It is important to note that a contractor could work for a company full-time, but still be an independent contractor. For example, you own your own business and file your own taxes through that business, but you have only one client that you work 40 hours per week for. You do not receive benefits and you are on a contractual basis; therefore, you are still not an employee of that company.
- You operate like your own business. That means you are listed in the phone book on your own, operate out of a separate location or even have a company business card.
- You set your own prices before you work.
- Your work is by the job; therefore, you are not on anyone’s payroll or salary.
- You have contracts with the employers/companies you do work for.
- You have people that work for you, not under you.
- You do not have a supervisor; instead, you are in charge of your work schedule and task management.
- You do not receive health benefits from the employer/company you are doing work for.
- You have been classified as an independent contractor by the IRS.
If You Are an Employee, You Are Entitled to Benefits
If you are not classified as an independent contractor and you are injured at work - whether due to the employer’s negligence, another employee’s oversight or even your own error - you are entitled to workers’ compensation benefits. Iowa employers are required to provide insurance through a private insurer or become self-insured providers so that they can handle all workers’ compensation claims received. If an employer does not provide this coverage, they are then liable for all workers’ compensation benefits, damages and even criminal penalties under Iowa laws. For your work-related injury, you may be entitled to benefits for:
You are limited as to how much time you have to file such claims. You are also required to notify your employer of the injury immediately following the accident. If you do not file within the specified time, you may forfeit your right to collect benefits. To get assistance with your workers’ compensation claims, contact Pothitakis Law Firm, P.C. today at 1-866-753-4692 or fill out an online contact form.
- Medical - These benefits are paid to the medical provider for all reasonable and necessary medical care related to the work injury - this can include medications, treatments, etc.
- Disability - This includes wage replacement, but cannot exceed 80 percent of your weekly spendable earnings (your net earnings). The level of disability pay you will receive depends on which category of disability your injury has placed you into.