Independent contractors, freelancers, consultants–whatever name you attach to this category of worker—in the state of Georgia are not eligible for workers’ compensation benefits. As the economy continues to shift, we are seeing increasing numbers of employers who outsource work to independent contractors and reap the benefit of getting the services without offering rewards such as medical, dental, and workers’ compensation. Employers save money, reduce lawsuit exposure, and can hire and fire the independent contractor at will. So, as an independent contractor, what can you do if you are injured while on the job? The first thing is to find out if you are considered an independent contractor or if there is a chance you qualify as an employee.

Definition of Independent Contractor

In Georgia, you are an employee or independent contractor. The Georgia Department of Labor offers a method that can establish a worker’s status using the state’s workers’ compensation statute, which defined an independent contractor as a person who:

•      Is working under a contract that creates an independent contractor relationship
•      Has the right to exercise control over time, manner, and method of work
•      Is paid on a set price per job rather than salary or hourly basis

In all states, businesses must pay for state workers’ compensation insurance coverage if an employee becomes injured or ill on the job. An independent contractor must be classified as exempt with a 1099 form where the independent contractor pays their own income tax and self-employment. However, because of the complexity in Georgia law, even where a 1099 is present, you still might be considered an employee and therefore entitled to workers’ compensation benefits.

Here are some factors to consider when determining your status of employee versus independent contractor.

•      Did you sign an independent contractor agreement?
•      Are you being paid hourly or salaried, much like an employee would be paid?
•      Is the job you are doing part of the regular business of the employer, or is it an additional service?
•      Are you supplying your own tools for the job? Or are you being supplied or reimbursed for resources used on the job?
•      Does the company control how you perform your job?
•      Does the company tell you when to arrive at work or do you set your own time?
•      Does the company tell you how long you must work for and when your work day ends?
•      Have you ever been told to obey the employee’s directives, or you will be terminated?

The Georgia Workers’ Compensation System

The Georgia workers’ comp system does not look at a person as an independent contractor the same way that in which the general work force might and there are gray areas which are open to interpretation. The bottom line that Georgia law looks at is whether the employer has “the right to control the time, the manner, the methods, and the means of execution of the work to be completed under the contact”. So as the control in which the employer has over the independent contractor increases, so does the chance that the worker will be considered an employee for workers’ compensation benefits.

If you are an injured worker being denied benefits because the employer claims you are not covered by the Georgia Workers’ Compensation Act, then you must seek an experienced workers’ compensation attorney to give you your legal rights.