Did you know that in the state of Georgia, independent contractors (freelancers, consultants, etc.) are not eligible for workers’ compensation benefits? Over the past few years, there has been a surge in employers outsourcing to independent contractors which gives them the benefit of not having to provide insurance, such as medical and dental, as well as workers’ compensation. Hiring an independent contractor saves the employer money, reduces the chances of a lawsuit, as well as being able to hire and fire at will, although Georgia is a “right to work” state. With this being said, what can an independent contractor do if they are injured on the job? First, you need to find out if your role fits the definition of an independent contractor or if there is a possibility that you could qualify as an employee. 

According to the IRS, an individual is an independent contractor if “the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.” As an independent contractor, you are hired to complete a project, provide a service, etc. without the confines of being an employee, which means you set your hours, where you will work, how you will work, just as long as you provide what you were contracted to do.

Independent Contractors are people who:

• Work under a contract that establishes an independent contractor relationship
• Have the right to control their time, method, and means of work
• Are paid “by job” at a set price, as opposed to a salary or hourly basis

If an employee is sick or injured on the job, businesses are required to pay for state workers’ compensation coverage. This is standard for all fifty states. As an independent contractor, you pay your own income tax and self-employment, being classified as exempt with a 1099 tax form.

Independent Contractor vs. Employee: Determining Independent Contractor Status

• Was an independent contractor agreement signed?
• Is your compensation based more so around an hourly or salaried wage, like an employee?
• In the job(s) you are performing, are they a regular part of the business for the employer, or is it an additional service?
• Does the company tell you when to arrive for work or do you set your own time?
• Does the company tell you how long you work and when your day ends?
• Does the company control how you perform your job?
• Do you provide your own tools for the job? Or are you being reimbursed for resources and supplied on the job?
• Are you told to obey the employer’s instruction or command, or you will be terminated?

In Georgia, the workers’ compensation system has a different way of viewing an independent contractor than the workforce in general. There are some gray areas that could be open to interpretation for workers’ comp. As in the questions from above, if an independent contractor is not as independent as the job title states, as in being told when, where, and how you work, are paid hourly or salaried in the same way as an employee, and the employer has more control over the contractor, there is a possibility of the contractor being considered an ‘employee’ for workers’ compensation benefits in the state of Georgia. 

If you have been injured on the job and you are being denied benefits because the employer does not classify you as an ‘employee’ but are being treated as such, then you need the help of an experienced workers’ compensation attorney to help give you your legal rights.