Wisconsin Worker’s Compensation Law: What is the Difference Between an Independent Contractor and an Employee?

Many times, employers try to avoid having to pay for worker’s compensation insurance by claiming that their workers are not employees but instead independent contractors.  As a result, the employers and often times the workers are under a false impression that because either one or both of them claim to be an independent contractor that the worker is not an employee and the employer is not subject to worker’s compensation insurance requirements.  Neither could be further from the truth.  There is a nine step determination that the Department of Workforce Development considers in determining whether a person is an independent contractor as opposed to an employee.  If the injured worker is an employee then they are entitled to worker’s compensation benefits.  If they are an independent contractor, although there are always exceptions, they may not be entitled to any compensation if injured on the job.

To truly be considered an independent contractor the individual must meet and maintain all of the nine following conditions:

1. They must maintain a separate business. 
2. They must obtain a federal employer identification number from the IRS or have filed business or self-employment income tax returns with the IRS based on the work or service in the previous year. 
3. The person must operate under specific contracts. 
4. The person must be responsible for operating expenses under the contracts. 
5. The person must be responsible for satisfactory performance of the work under the contract. 
6. The person must be paid per contract, per job, by commission or by competitive bid. 
7. The person must be subject to profit or loss in performing the work under the contract. 
8. The person must have recurring business liabilities and obligations. 
9. Finally, the person must be in a position to succeed or fail if business expense exceeds income.

In many situations, it is to the injured worker’s benefit to be considered an employee.  If the employer claims that you are not an employee and not entitled to worker’s compensation benefits if you are able to prove that the above nine conditions do not exist then worker’s compensation will consider you an employee.

Whether you are an employee or an independent contractor can make the difference between receiving the compensation you are entitled or being obligated to pay medical expenses and incur lost income without any recourse to recover those damages.  If you have been injured on the job and have any questions about your worker’s compensation rights please contact me for a free, no cost obligation consultation.  We handle these cases on a contingency fee basis so there are no fees unless and until there is a recovery.

If you have worker’s compensation questions in the Madison area call (608) 824-8540, in the Baraboo area (608) 356-3961, statewide call (866) 455-2993, email at mark@kh-law.net or check out our website at https://khtlawyers.com for more information.

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Stephanie Thompson, Estate Planning Attorney of Krueger Hernandez & Thompson SC

As the owner of Krueger Hernandez & Thompson SC, it is Stephanie’s mission to address each client’s goals for their estate plan. By identifying their wishes and concerns she can educate, guide, and counsel on the different tools and options that will effectively and efficiently accomplish those goals.

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