Can Independent Contractors File for Workers’ Compensation in Vermont?
The Vermont workers’ compensation system exists to provide benefits to workers who suffer injuries on the job. Workers who suffer injuries while on the job can file a workers’ compensation claim and seek benefits. In Vermont, workers’ compensation benefits cover medical treatment, lost wages, and other related expenses. But what if the injured worker is classified as an independent contractor, not an employee? Can independent contractors file for workers’ compensation in Vermont? Generally, independent contractors are not entitled to workers’ compensation benefits in Vermont. The workers’ compensation system is designed to cover employees, not individuals classified as independent contractors. However, determining if a worker is truly an independent contractor and not actually an employee can be more complex than it looks. Read on!
General Rule
In most states, including Vermont, the general rule is that only individuals categorized as employees are eligible for workers’ compensation benefits. Generally, independent contractors are considered self-employed, meaning they are responsible for their own insurance. When an independent contractor suffers an injury while working, they are responsible for their own medical expenses, lost income, and other related costs unless they have purchased insurance.
Distinguishing Between Employees and Independent Contractors
The Vermont Department of Labor uses specific criteria to differentiate between employees and independent contractors. In Vermont, the nature of the relationship between an employer and an individual determines whether they are an employee or an independent contractor. So, just because you are called an independent contractor does not mean you are truly independent under the law.
To differentiate between employees and independent contractors, Vermont applies the “ABC Test.” All three of the following parts of the test must be met for you to be considered an independent contractor.
- A – You have been and will continue to be free from control or direction over the performance of your work
- B – Your service is outside the usual course of the employer’s business
- C– You are customarily engaged in an independently established occupation, trade, profession, or business
Suppose only one of the above three parts is not true. In that case, you are an employee, not an independent contractor, and are eligible for workers’ compensation benefits if you suffer a work injury.
Misclassification of Workers
A significant problem workers face is misclassification. An individual may be labeled as an “independent contractor” by an employer when they legally qualify as an employee. Some employers deliberately misclassify workers to avoid paying workers’ compensation insurance and other employee-related benefits, while others misclassify workers accidentally. Either way, if you determine that you were misclassified, you may be entitled to full workers’ compensation benefits. For example, suppose an employer exercises significant control over how, when, and where you perform your duties, yet you are labeled as an independent contractor. In that case, you may be a victim of misclassification and thus entitled to workers’ compensation benefits.
If you have suffered a work-related injury and suspect you have been misclassified, contact a qualified workers’ compensation attorney. An attorney can review your work arrangement and help you pursue the benefits you may legally deserve.
Contact Us for Legal Help
Have you suffered a work injury and need help determining if you qualify for workers’ compensation benefits? Contact our skilled Vermont workers’ compensation attorneys at Sluka Law PLC today.
Source:
labor.vermont.gov/sites/labor/files/doc_library/Who%20is%20an%20Employee%20vs.%20Independent%20Contractor.pdf
