With the skyrocketing of remote and freelance work in recent years, employers have spent considerable time trying to keep up with the changing landscape and laws. To save money or meet the worker pool’s changing demands, many employers boosted the share of independent contractors on their payroll.
But when all is said and done, that can leave you with questions like, Do I have to pay workers’ compensation for independent contractors? In this post, we provide an answer to this question. We also explore information on Florida’s law about workers’ comp and independent contractors.
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Workers’ compensation is a type of insurance policy you take out to cover employee medical bills and lost wages. It kicks in when an employee suffers accidental, on-the-job injuries. Subject to exceptions, the policy comes into play regardless of fault. Employees typically can’t file a lawsuit against your company for a work injury if a workers’ compensation policy covers them.
Florida requires you to have a workers’ compensation insurance policy that covers your employees. But you may not need to if the worker is an independent contractor.
Whether you have to pay for workers’ compensation insurance for independent contractors depends on many factors, like:
But, as you may know, just calling someone an independent contractor doesn’t guarantee that that is how the law sees them.
Let’s review how to determine if someone is an independent contractor under Florida law.
Note that federal laws may classify the relationship differently. For our purposes of answering our main question, Do I have to pay workers’ compensation for independent contractors?, we’re focusing on Florida state law in the context of workers’ compensation.
If you’re in the construction industry, it’s safe to assume that the person who works for you is an employee under Florida law. As a result, you will most likely need to pay for workers’ compensation that covers them.
But exceptions apply. For example, let’s say the worker is a subcontractor who files an exemption or has taken steps to secure coverage another way. In that scenario, you may not need to take out workers’ compensation that covers them.
If you work in this industry, it’s essential to speak with a business attorney to help ensure that you are compliant and not spending more money than you need to.
Florida’s workers’ compensation law gives criteria for when someone is an independent contractor. Let’s go over some of that now.
For specific questions on how these apply to your relationship with your workers, talk to a business attorney.
Our attorneys have extensive experience helping employers navigate the complex world of owning and running a business, including meeting their legal obligations.
Someone isn’t an employee if they meet at least four of the following criteria:
Let’s say that the worker and your relationship with them don’t meet four of the criteria above. Does that mean that they aren’t an independent contractor under Florida law? Not necessarily.
But Florida law has other criteria to determine if someone is an independent contractor. For example, if the worker has control over their work, when they do it, how they do it, and at what price they do it for, they may be independent contractors.
Further, exceptions may apply that exempt you from having to pay for workers’ compensation for an employee.
Because this determination depends on the facts and law applicable to your circumstance, it’s best to consult a business attorney.
Our team can review your existing contracts and help you understand your obligations under Florida law.
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If you need help navigating workers’ compensation laws for independent contractors, call us today or contact us online to schedule a consultation.
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Michael Long, a distinguished Business and Litigation Attorney at BrewerLong, brings a unique blend of tenacity and insight to his practice, honed from his time as a decorated combat veteran in the Marines. Specializing in complex litigation, Michael adeptly navigates the intricacies of business break-ups, professional liability, and a wide array of disputes encompassing tax, trust, real estate, contract, intellectual property, and loan issues. His expertise extends to business counseling, where he skillfully handles commercial contracts, company creation, intellectual property challenges, and more. Michael’s approach is holistic; he leverages his transactional and litigation experience to foresee and tactically address both immediate and long-term client needs, ensuring practical, cost-effective solutions that maximize benefits while minimizing risks. His commitment to excellence is evident in his affiliations with prestigious organizations like the American Legion, Central Florida Christian Chamber of Commerce, and the Orange County Bar Association, among others. He’s a committed advocate, driven by a passion to deliver results and justice for his clients.
