The workers' compensation laws make the employer responsible for medical, indemnity and/or death benefit for subject employees who are injured or killed while performing services for the employer. However, questions frequently arise concerning whether the services are being performed by an employee or an independent contractor. In order to determine the status, your insurance carrier will obtain all available pertinent information and decide whether, in their opinion, the work is being performed by an employee.

To establish an employee-employer relationship, more emphasis will generally be placed upon the employer's right to exercise direction and control (regardless of whether such right is actually exercised); the right to hire and fire; the relationship of the work to the employer's business and the degree of work performed, i.e. continuous, intermittent, etc.

The following questions are relevant to this determination:


Type of work performed by the contractor.
Does the contractor have their own W.C coverage?
If yes, indicate name of carrier.
Is there a written contract between the insured and the contractor? If yes, attach a copy.
Does the insured have the right to terminate the contract without prior notice?
Does the insured have the right to "hire and fire " the contractor or his assistant?
Does the contractor have the right to work for others? If yes, do they do so?
Does the insured withhold social security, unemployment, state or federal taxes from the amounts paid to the contractor?
Is the contractor permitted to choose his own work hours?
Does the contractor have the right to reject assignments?
Does the contractor furnish their own tools and equipment?
Does the contractor furnish all or a portion of materials? If only a portion is furnished, explain.
Does the contractor have their own place of business?
Does the contractor advertise such business in the "Yellow Pages "?
Is the contractor licensed? Do they pay their own license fees?
Is the contractor paid on a distinctly different basis than regular employees? If yes, explain.
Does the contractor have the right to terminate the contract without penalty?
What is the method of payment-flat amount for jog; or hourly, daily or weekly? What is the amount paid during the period?