Malamut & Associates


Independent Contractors and Workers’ Compensation Claims in New Jersey

April 20, 2017 |

Malamut & Associates - Independent ContractorWhen considering filing a Workers’ Compensation claim, it’s important to understand whether you are covered. The key distinction in whether you are eligible is based on your type of employment. Those considered independent contractors do not have Workers’ Compensation coverage in New Jersey. In those cases, compensation often results in litigation.

Financial Control

The person with the control over finances is often a defining factor in these cases. The first clue to whether you are an independent contractor is how you are paid. If you are reimbursed for your services using a 1099 tax form, it is a good indicator you are a contractor. However, there are exceptions.

Reimbursement for travel is less common for independent contractors. If the company reimburses your travel, there may be a case that you are an employee. How time is invested is another indicator. If you are only paid for the time it takes to complete work, as opposed to time at the office, you may be considered an independent contractor.

Behavioral Control

How an employer gives you instructions on how to work is another key factor. When a contractor uses company tools, it could be a huge argument in the worker’s favor for being considered an employee. Looking at what workers are hired or assist the person also can indicate they are an employee.

How the worker purchases supplies and services, what order of work they follow, how they perform their work, and when or where the work is performed are also important considerations. A judge will weigh these factors into decide whether the worker is being misclassified as an independent contractor.

Business Relationships

The nature of the agreements made both verbally and in writing can shed light on whether the employer classified a worker as an independent contractor to avoid establishing an employee-employer relationship. A written contract citing the worker as an independent contractor does not necessarily mean the worker is not an employee.

The worker having insurance and other fringe benefits, along with a tenure of service, is weighed in decisions made in court. When a worker is given benefits that extend beyond compensation for work completed, courts often declare the person an employee.

If you have been misclassified as an independent contractor by your employer for the purpose of avoiding Workers’ Compensation benefits payment, call the attorneys at Malamut & Associates right now at (856)424-1808

We offer free initial consultations at our Cherry Hill, New Jersey, offices to help our clients assess the best legal strategy for their case.