On-the-job accidents and work-related illnesses can be devastating. They can put individuals out of work for months or even years at a time causing serious financial distress, especially if you are denied worker’s compensation benefits. Unfortunately, worker’s comp eligibility often depends on whether you are classified as an employee or an independent contractor.
Worker Classification in Minnesota
Minnesota distinguishes between two classifications of workers: independent contractors and employees. However, there is no set definition or universal test to determine whether a worker is an employee or an independent contractor. In fact, depending on the situation, there are different determining factors, which can cause a lot of confusion and even lead to misclassification. Since classification determines your rights under the Minnesota Workers’ Compensation Act, misclassification can have significant consequences.
Classification for Workers’ Compensation Benefits
As far as worker’s compensation goes, the Minnesota Department of Labor and Industry considers a multi-factor test that varies based on occupations. Key factors in determining classification include:
- The right to control
- The right to discharge
- Availability to the public
- The mode of compensation
- Investment
Independent contractors will typically work under a contractual agreement, receive a Form 1099 for taxes rather than W-2, and maintain control over how they complete tasks.
Workers’ Compensation for Employees
Employees in Minnesota are typically covered by workers’ compensation insurance provided by their employer. This coverage provides compensation for medical expenses, lost wages, rehabilitation costs, temporary or permanent disabilities, and reimbursement for mileage and parking fees that are related to a work-related injury or illness. As an employee, if your workers’ compensation benefits are denied, you still have the right to file an appeal, and you can hire a worker’s compensation attorney to help you with the process.
Workers’ Compensation for Independent Contractors
Independent contractors, on the other hand, are generally not covered by an employer’s workers’ compensation policy. They are considered self-employed and would be responsible for obtaining their own insurance coverage if they wished to be protected in the event of a workplace injury. They may, however, be able to pursue other options such as third-party liability claims, personal injury lawsuits or claims against their own insurance policy.
What to do About Misclassification?
Misclassification is a legal issue. It can cost you benefits, strip you of your legal rights and on-the-job protections and impact you financially. Even if you receive a Form 1099 or signed a contract, you could still be classified as an employee by Minnesota law if your work relationship meets certain employee criteria.
If you feel you’ve been misclassified, consult a Minnesota workers’ comp attorney. We can help you determine your correct classification and understand your rights as an employee or an independent contractor so you can pursue the benefits you deserve for your recovery and financial security. There’s no fee unless we win—let us work for you! Call now to speak with one of our attorneys for a free, no-obligation worker’s compensation case review.