In the state of Tennessee independent contractors are not eligible to receive workers’ compensation benefits. These are workers a company doesn’t have to list as employees for tax purposes and more. The law is clear but can get a little clouded when employers don’t follow the details of the law. This can be a benefit to an independent contractor who becomes injured while working on a project for a company.
Worker Misclassification
There are some employers who misclassify certain employees as independent contractors. Their goal is to save money by not paying required worker’s compensation coverage. This is a type fraud and is against Tennessee law. There is a hotline for employees in Tennessee to report it. This is to help workers who have their working status intentionally misclassified by their employer. The hotline number is 1-888-243-7283. Should an injured worker be able to prove they were misclassified during their employment, they could qualify to receive workers’ compensation benefits.
Multiple Employers Or Just One
One thing that is considered when determining worker’s compensation for a someone classified as an independent contractor is their number of employers. Someone who is an independent contractor will have multiple employers or customers. They will also set their own work hours. An independent contractor will have their own tools to do the work projects they are given. An employee will have only one employer. It is the employer who will set their work hours. An employer will own the tools an employee uses during their work tasks. Employees are paid a wage or salary. They can quit at any time.
No Single Test
There is not just one single test that will determine if someone is working as an employee or an independent contractor. There are a number of factors that must be taken into consideration. It is important to determine the amount of independence someone has in order to be considered an independent contractor. The permanency of the working relationship must also be determined. An independent contractor may only work for a project, but an employee expects to be taken onto another project when one is completed. The level of the service provided for the employer and how integral it is to the business and more are also factors.
Difference In Taxes
The status of someone who is an independent contractor can also be determined by how they pay taxes on their income. An employer is required to deduct a certain amount of an employee’s earnings to pay income tax, Social Security, as well as Medicare and more. An independent contractor is self-employed. This means they are responsible for paying their own tax burden to the required taxing authorities.
Lawsuit
An independent contractor can file a lawsuit against a company if they are injured on the job under certain circumstances. This would be a recommended course of action if injuries were experienced as a result of the company asking an independent contractor to perform activities involving unreasonable harm or risk. If an employer knows or had reason to know about the danger of a work activity, the company can be held liable. This is also the case if an independent contractor experiences physical harm if the actions of a company’s employees caused harm because of a refusal to take the necessary precautions to avoid danger. An employer can also be held responsible if their negligence in the workplace causes injury or death to an independent contractor.
