In California, workers’ compensation laws are designed to protect employees who suffer injuries on the job. However, the rules around independent contractors are different. Understanding how workers’ compensation applies to independent contractors is essential for both business owners and workers in California.
Independent contractors and workers’ compensation coverage
California law generally does not require employers to provide workers’ compensation insurance for independent contractors. These workers are not considered employees, which means they don’t automatically qualify for benefits under workers’ compensation laws. Independent contractors are responsible for their own insurance coverage, including any protection for work-related injuries.
Exceptions to the rule
There are some exceptions where independent contractors might still be entitled to workers’ compensation benefits. If the individual is misclassified as an independent contractor when they should be classified as an employee, they may be eligible for workers’ compensation benefits. This misclassification can occur if the employer controls how, when, and where the work is done, similar to the control they would have over an employee.
Certain types of work may also require employers to carry workers’ compensation coverage for independent contractors. For example, in the construction industry, subcontractors may be considered employees in some cases and entitled to benefits. It’s important for independent contractors in such fields to verify whether they need coverage and if their employer’s insurance extends to them.
How independent contractors can protect themselves
There are many benefits to workers’ compensation in California. Independent contractors should consider purchasing their own workers’ compensation insurance, especially if their work involves physical labor or carries a higher risk of injury. Additionally, contractors may look into other forms of insurance, such as disability insurance, to ensure they have adequate coverage in case of an injury.