The gig economy is growing, and many gig workers sustain themselves solely from one or more of these types of jobs. “Gig work” is loosely defined as on-demand jobs such as delivery, service jobs, and transportation among others. Popular hiring platforms include Uber, Lyft, DoorDash, Postmates, and TaskRabbit.
Whether or not a worker receives workers’ compensation depends on their classification as an employee, or as an independent contractor. An employee of a company who is injured on the job is entitled to workers’ compensation benefits while a self-employed independent contractor is not. Companies who employ gig workers will often claim the majority of them are independent contractors to save the expense of having to pay workers’ compensation, health insurance, and unemployment benefits.
Who is an Independent Contractor?
Employment laws vary greatly from state to state as do contracts for gig workers. If you are a gig worker who has been injured on the job do not assume you cannot receive workers’ compensation. It is important to consider the specifics of your case and consult with an experienced workers’ compensation lawyer to be sure of your rights under the law. It is possible you have misclassified as an independent contractor by your employer. This can happen both purposefully or as an honest mistake. Either way, you may need to have it corrected to receive workers’ compensation benefits for your injury.
In New Jersey the following criteria from the New Jersey Unemployment Compensation Act are used to determine who is an independent contractor:
- The worker, not the employer, has control and direction over how they do their job
- The worker is performing a service that is not part of the employer’s usual course of business
- The worker is routinely engaged in an independent business or occupation
A worker can be defined as an independent contractor if all three criteria are met. It should be noted that in New Jersey workers are considered to be employees unless the employer proves otherwise. Businesses that misclassify their employees as independent contractors can face penalties for doing so.
For federal institutions such as the IRS, the first criterion is the most important. It says that if you are an independent contractor in business for yourself, you are in control of how you do your job and the businesses you work with are limited to accepting or rejecting the final results of your work. In contrast, if the firm that hires you has the right to direct and control when, where, and how the work is done, then you are an employee.
Other factors that indicate you are an independent contractor include:
- You work with multiple clients
- You set your own schedule
- You pay for your own office and equipment and other business expenses such as marketing and business licenses
- You pay all your own Social Security and Medicare taxes
- You use written independent contractor agreements
Classifying Gig Workers
During the coronavirus pandemic focus on the gig workers who provided many of the services the rest of the nation needed when lockdowns were ordered intensified. Many people were afraid to go out and groceries, take-out, and online orders for everything from toilet paper to pet food were delivered by gig workers. People who lost their jobs as a result of the pandemic turned to gig work and more attention was paid to the many people who worked multiple “side jobs” to make ends meet.
States like California have tried and failed to make rideshare companies Uber and Lyft classify their workers as employees and pay them benefits, including workers’ compensation. Some larger companies have responded by creating modified programs that attempt to provide some type of medical or wage loss assistance to independent contractors. The attempts to legislate protection for gig workers and offerings by the companies that employ them are constantly in flux.
The bottom line is that online hiring platforms typically make their workers sign a contract that includes a provision that the worker is an independent contractor and agrees to accept that status. Even if the company offers some kind of minimal program, it will not be anything as comprehensive as workers’ compensation would be.
What Benefits does Workers’ Compensation Provide?
When an employee covered by workers’ compensation gets injured on the job, they can expect to receive benefits such as:
- Medical benefits that cover doctor visits, hospital stays, prescription medication, prostheses and necessary medical equipment, and physical therapy
- Wage loss benefits of around two-thirds of average weekly wages if the employee cannot work while recovering from their work injury
- Death benefits for the surviving dependents of an employee who suffers a fatality
- Temporary disability payments for employees whose injury prevents them from working for more than seven days
- Permanent partial disability payments for employees who suffer a lasting impairment but are still able to work in some capacity
- Permanent total disability payments for employees whose injury leaves them permanently and totally disabled
Before assuming that you are ineligible for any of these benefits it is advisable to review your employment contract and working conditions. For example, if your hiring platform calls you an independent contractor but controls when you work and sets the price for your work, you may be able to dispute your employment status with them. If you have a primary place of employment and also do gig work to supplement your income, you may be able to use your gig wages to increase the wage benefits for an injury sustained at your primary job. Determination of workers’ compensation wage loss benefits is a complicated calculation based on your average weekly wages. Consulting with an experienced workers’ compensation attorney can ensure you are receiving the maximum amount of benefits you are entitled to under New Jersey law.
Camden County Workers’ Compensation Lawyers at Pietras Saracino Smith & Meeks, LLP Answer Questions About Your Eligibility for Benefits
If you are a gig worker concerned about your employment classification status, we can help you navigate the ever-changing laws governing the gig economy. Speak with one of the knowledgeable Camden County workers’ compensation lawyers at Pietras Saracino Smith & Meeks, LLP. Call us at 856-761-3773 today, or contact us online to schedule your free consultation. From our offices in Cherry Hill, New Jersey we proudly represent injured workers in Camden, Cinnaminson, Delran, Maple Shade, Pennsauken, and throughout South Jersey.
