Independent Contractors
Independent contractors are not covered by the Workers Compensation Act because there is no employer-employee relationship between the parties. However, substance always trumps form. What this means is that it does not always matter how the parties refer to each other. Whats most important is whether the relationship between the parties is that of an employer-employee relationship or independent contractor. Various factors include (a)whether the person employed is engaging in an independent business, (b)whether the employed is to have a special knowledge or skill, (c)whether the employed is doing a specified piece of work at a set price or lump sum, (d)whether the employed is subject to discharge because he or she adopts one method of work rather than another, (e)whether the employed is in the regular employ of the other contracting party, (f)whether the employed can utilize assistants as he or she deems proper, (g)whether the employed has full control over his or her assistants, and (h)whether the employed selects his or her own working time.
No one factor is determinative, but all of the factors are looked at in order to reach a decision on whether the worker was actually an independent contractor or indeed an employee. Once again, substance is more important than form in reaching that decision. If it is found that the worker was an independent contractor, than the Workers Compensation Act does not apply at all.