Are you an Independent Contractor?

Did you know that, according to a report released by the U.S. Department of Labor, approximately “1 in 10 workers is an independent contractor?” While this may not seem like a particularly alarming statistic, it is once you realize that it represents 15.5 million people in the United States who will be rejected for workers compensation benefits should they get hurt on the job. It’s also alarming to realize that some of these people are not even actual independent contractors, and that their employers unlawfully manipulated their employment status in in hopes of preventing them from ever collecting the workers compensation benefits they might one day need – after all, all it takes is a few signatures and compensation through IRS 1099 forms.

Fortunately, there is still good news for Michigan workers. Michigan law utilizes the “20 Common Law Factors” of “Rev. Rul. 87-41, 1987-1 CB 296” to determine and define the relationship between employees and employers, which means how you are classified by your employer legally has no impact on whether or not you receive workers compensation benefits if you are involved in a work-related accident. In fact, in accordance with the 20 Common Law Factors, you are not considered an independent contractor if:

• You are required to obey another person’s instructions about “when, where, and how” you perform your responsibilities;
• You have been formally trained in some manner on how to accomplish your tasks in a specific way;
• Your performance or contribution directly impacts the success or continuation of the company or business you are working for;
• Your “services must be rendered personally;”
• You do not hire, supervise, or pay assistants;
• You are in a longstanding or “continuing relationship” with the company or business you are servicing;
• You must complete a set number of hours per week;
• You are require to work full time;
• You work “on the premises of the person or person for whom the services are performed;”
• You are required to “perform services in the order or sequence set by the person or persons for whom the services are performed;”
• You are required to submit oral or written reports;
• You have a strict payment schedule in which you are paid by the hour, week, or month;
• Your business or traveling expenses are paid for by the person you are providing services to;
• You were given or provided with tools, equipment, or other materials by the person you are working for;
• You do not have, nor have you ever invested in, any kind of designated facilities to perform your services in (you rely on an employer for a workspace);
• You cannot “realize a profit or suffer a loss” as a result of your services;
• You work exclusively for one person or organization (you still may be classified as an employee if you have multiple, unrelated jobs);
• You do not make your services available to the general public;
• You are vulnerable to being terminated at will;
• You are free to leave or quit your job, or cease providing services, at any time without risks of liability.

If you are struggling to receive the workers compensation benefits you need all because you were told by your employer that you are an independent contractor, let one of our reputable workers compensation attorneys at Aiello Law Group have a good look at your case. You may be entitled to more than you think! Call us, today, at 313.964.4900 or fill out the form in the sidebar or on our contact page, and learn more about how we can help you.