ForumsManaging Employees and HR

Here's a source with a few links to good resources - http://www.acceon-usa.com/links.htm

There was a point made in someone else's reply to you that really needs further explication. This is a subject I have touched on in other posts to this forum, but it probably bears repeating.

When it comes to Workers Compensation, in most states independent contractors without their own Workers Comp coverage are treated the same as your direct employees. That is, you will still be held responsible for any work-related injuries or illnesses, and your insurance company can and will charge you premium for your uninsured independent contractors.

Some states do allow independent contractors to elect to go on record as not being eligible for WC benefits from those who retain them--but this varies significantly from one state to another. Many states that allow such an election limit it to independent contractors in the construction trades. Many other states do not allow any such exemptions, and in those states you are completely liable for your uninsured independent contractors or subcontractors.

Another point to remember is that many states have been cracking down on what they perceive as abuse by employers of "independent contractor" status for workers who are really employees, and so a number of states have enacted new penalties for companies that are improperly classifying workers as independent contractors. My home state of Illinois is one of those states that have enacted new penalties in recent years, and Illinois is not alone in this regard.

One of the key factors in many states is whether or not the "independent contractor" is in the same business as your company. In those cases, the odds are high that the worker will be determined to really be an employee, and then the employer may have significant costs and penalties.

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