With the exception of independent contractors working or performing services in the construction industry (Florida Statute 440.02(15)(c)3), individuals working as independent contractors are not eligible for workers’ compensation benefits from the companies for whom they are performing services. The reason why is because they are not considered employees of those companies. F.S. 440.02(15)(d)1.
These statements should not be misconstrued as meaning that employees of independent contractors are not entitled to workers’ compensation. Such employees are entitled to workers’ compensation from their own employers. However, in many instances, the individuals who work as independent contractors are self-employed or work for others who do not have workers’ compensation insurance.
Many companies seek to limit their workers’ compensation insurance premiums and claims by classifying individuals as independent contractors when they are not. On the opposite end of the spectrum, some companies try to avoid being sued for negligence by classifying independent contractors as employees. See Florida Statute 440.11 Exclusiveness of Liability.
The issue has been heavily litigated in Florida. To provide some guidance on the issue, the Florida Legislature created a checklist of factors to consider in making the determination. See 440.02(15)(d). The factors include:
- Whether or not the individual maintained a separate business, with his or her own work facility, truck, equipment and materials;
- Whether or not the individual holds or has applied for a federal identification number;
- Whether or not the individual performs work for any entity in addition to the person for whom he or she was performing work at the time of the accident;
- Whether or not the individual incurs the expenses of the work performed;
- Whether or not the individual may realize a profit or a loss in connection with the work;
- The success or failure of the individual’s business depends on the relationship of business receipts to expenditures