We use our experience and relationships to negotiate your lowest rates for employees. After all, an independent contractor usually has several clients. A copier can visit 10 different customers in a day to make repairs. If the copier came to my office every day and just worked for me, then he`s probably my employee. A scaffolding builder who spends a week erecting scaffolding for one construction company and then another week on another construction site for another construction company is likely to be an independent contractor. A scaffolding builder who only works for a construction company and goes from one construction site to another to erect scaffolding only for that construction company could prove that he is an employee. Independent contractors provide services in exchange for remuneration and are generally free from the control and supervision of the employer. Whether a person is designated as an employee or independent contractor has important implications because independent contractors are granted different rights than employees under federal and state law. Workers who use their own materials and tools, control significant aspects of the employment relationship, perform tasks relatively quickly, are highly skilled, and control how they do their work can generally be classified as independent contractors. Employers without compensation may have to pay punitive damages if they lose a lawsuit. You also lose some common law defenses, such as.
B the argument that (a) the negligence of the injured employee caused the injury, (b) the negligence of co-workers caused the injury, or (c) the injured employee was aware of the danger and voluntarily accepted it. When it comes to workers` compensation in Texas, employers sometimes do bad things. For the purposes of our discussion today, we will focus on how employers try to trick some workers into believing they are independent contractors in order to opt out of workers` compensation benefits. The truth is that some independent contractors in Texas receive workers` compensation benefits. Texas` Workers` Compensation Act has caught up with these types of games that employers play. This is called FRAUD. In our system, some independent contractors receive workers` compensation benefits. Certain types of employees, who are generally considered independent contractors, may be considered employees in Texas if they are under the direct control of the employer.
This would mean that they would have to be insured for employee compensation and that they should have the same right to choose workers` compensation. This usually happens when it is determined that an independent contractor is misclassified by the state at the time of an offence or the employee is attempting to file an unemployment claim. This applies even if the employees are considered independent contractors for IRS purposes. Workers` compensation is not required, so there are no penalties for not having coverage. However, there are administrative penalties if you do not send the notice of non-coverage to employees in a prominent location. (Section 406.005 Statutes of Texas) You must publish the notice annually. It must be published in English and Spanish and in other applicable languages spoken by staff. In addition, business owners should ask employees to issue a signed and dated copy of the notice specified in the employee`s file at the time of hiring.
There are rules that require employers to publish a notice of termination if they receive workers` compensation or change coverage. The Stevenson case highlights the need for employers to deal consciously with temporary agency workers, both contractually and in practice. Host employers should recognise the possibility of being treated as a worker`s employer, in particular if they have the right to control that worker`s work. In a workers` compensation case, this can be a good outcome. In other contexts, this may not be the case. Another factor is who provides the tools. Independent contractors usually drive in a truck with their own tools. An employee usually receives tools from the company. Many employers are honest when it comes to classifying employees as employees or independent contractors and ensuring that workers receive fair pay, including overtime.
Unfortunately, some employers try to avoid paying for health insurance or overtime by incorrectly classifying employees as independent contractors. Employer liability insurance is an additional layer of coverage that is included as part of employee insurance. The employer`s liability is called Part 2 of the policy. It adds two additional coverages for employers: An independent contractor is generally a person who performs a function that the employer does not normally perform in the course of its activities. For example, the copier who comes to our office to maintain the copier is not our employee. He would be an independent contractor. A painter could hire a company to erect scaffolding on a construction site. This builder of scaffolding does not become an employee of the painter. Employers cannot charge employees for compensation coverage.
There are a few exceptions for independent contractors and some construction workers, this kind of thing happens all the time. If you can speak openly with a general contractor, they will tell you that they need to do so in order to make a competitive bid for a project. Workers` comp insurance and payroll taxes increase their costs, which drives up their price. The current importance of the multi-entity workplace, where so-called “host” employers rely on external recruitment agencies to perform various functions, makes a clear determination of legal “employer status” essential in various contexts. Often, a host employer will argue that an employee is an independent contractor rather than an employee. This approach generally leaves it to the recruitment agency to be responsible for classification decisions under the Fair Labour Standards Act and compliance with the Occupational Safety and Health Act. Labour law covers a wide range of legal issues, one of which concerns workers` rights. These rights, which include the right to fair wages, overtime pay and safe working conditions, are only available to those who are legally qualified as employees. For this reason, many employers strive to find ways to classify an employee as an independent contractor, as this protects them from liability in the event of a workplace accident and eliminates the need for health insurance.
A sole proprietorship or partnership is included for workers` compensation, but may choose to be excluded from coverage. LLC members are included for employee compensation, unless they choose to exclude. Business leaders, even if they can be considered employees, are included, but can choose to be excluded. The most common method used to determine whether a party is an employee or an independent contractor is the application of the “right of control” test, which assesses the above factors in relation to the extent of control that the employing party can exercise. Analysis of this factor requires research into who sets the wage amounts and hours of work, and whether the employee is free to work for others or hire additional help. Any person who knowingly or intentionally makes a false or misleading statement in order to refuse or obtain workers` compensation or insurance coverage, or who, for that purpose, distorts or obscures an important fact, manufactures, modifies, conceals or destroys an essential document, or conspires to commit such acts, commits an administrative offence that may result in a sanction, Fine or penalty. Unfortunately, this can have devastating consequences for an employee who believed he or she was qualifying as an employee. If you believe you are incorrectly classified as an independent contractor, please contact Wood Edwards LLP`s experienced employment lawyers at (214) 760-6893 to learn more about your rights. Alternatively, the employer may decide to participate and voluntarily pay compensation for employees. Thus, when an employee is hired, he has 5 days to choose to retain the usual right to sue for bodily injury. or opt for workers` compensation.
If the employee chooses workers` compensation, the employer may receive a benefit because it receives benefits set out in the Workers` Compensation Acts and the Workers` Compensation Board, and cannot sue the employer under the common law. The employer must give the employee notice of the right to choose either option within 5 days. The notice is available on the Workers` Compensation website. Employers must give this form to the employee on the day of hiring and receive a signed and dated copy of the election after signing. If the employer does not pay compensation, it must file a notice of non-coverage DWC005. This form must be submitted each year before the end of April of each year. This form and instructions are available at www.tdi.texas.gov. More information can be found on the website On the other hand, those who are paid by the hour, at work, who are essential to an employer`s business and can be fired at will are much more likely to be employees. Unfortunately, it is not always easy to tell whether a party falls into the category of an independent contractor or an employee, thus misclassifying many workers. There are several factors to establish yourself as an employee. The most important is the right of control.
Who controls what you do? If the company tells you what to do and how to do it, then it exercises the right to control. .