The world saw a gig economy born in the early 2000s bloom in 2015. Then, with time to cultivate new skills, realize passions, and prioritize goals, 2020 and the COVID-19 pandemic brought a new wave of more freelancers and gig workers reshaping American employment. Many people discovered themselves flourishing with more independence than in their traditional roles and career paths. However, with the good, there will always be some downsides. Independent contractors are up against some unique challenges, including finding financial support and severance following a workplace injury. If you are an independent contractor in California, you know that continuing to learn brings in greater power, and this concept also applies to workplace injuries, liability, and compensation. By educating yourself, you can figure out where you stand and how to secure any compensation you might be entitled to receive.
Independent Contractors vs Employee: Why It Matters
Where does the distinction between the employee and the independent contractor lie? Employees benefit from many rights, from workers’ compensation to the potential of receiving severance pay. Alternatively, independent contractors are typically excluded from these benefits because they are viewed as self-employed.
You can turn to the ABC test to determine which type of worker you are: an employee or an independent contractor. It’s a standard California conducts to help determine a worker’s classification. Under this test, you are presumed to be an employee unless the hiring entity can verify that you meet special criteria, such as operating an independent business. Misclassification and its byproducts have become a pervasive matter with minor to major repercussions, including hindrances to the ability to seek compensation following an injury.
Barriers to Compensation After Workplace Injury
When independent contractors get injured on the job, they have some pretty steep obstacles to conquer before arriving at any sort of compensation. Without access to workers’ compensation, they must bear the financial stress of medical bills, lost wages, and other damages all on their own, and this financial weight can also fall on their families. Moreover, severance rights for contractors are never guaranteed under the law, so this can also add another level of financial hardship during an already tough time.
A pivotal issue at the center of contractor job-site injury is liability. Contractors have to indicate the injury was attached to unsafe workplace conditions or some type of negligence on the hiring entity’s end if they want a shot at proving a claim. Illustrating such claims can be problematic, especially without solid documentation and legal support skilled in this particular niche of employment law.
Are Legal Agreements The Solution?
Although not legally required, the severance agreement could be a way for injured contractors to secure financial assistance. These agreements are private contracts between the hiring entity and the contractor. The gist of this agreement is the hiring agreement offers compensation in exchange for specific concessions like waiving the rights to any future claims. While this is not a necessity, a severance agreement can be a realistic and easier solution to a job injury for both parties. Injured contractors might have a stronger negotiation position if they can establish that the injury they have suffered was due to the hiring entity’s negligence. For instance, defective equipment supplied to a contractor by their hiring entity, and then that faulty equipment leading to an injury, could serve as the foundation for a severance request. The contractor can secure fair parameters by bringing a qualified employment lawyer on board.
Strengthening Your Case for Smooth Severance Negotiations and Compensation
Successfully negotiating a severance contract depends on preparation, knowing your options, and a strategic approach.
Review of Existing Contracts: Examine the original contract stakes between yourself and the hiring entity to determine any existing provisions related to injuries or severance. These terms may influence what you can reasonably request during negotiations.
Understand Release Clauses: Severance agreements are usually built to include clauses that have the power to release a hiring entity from future liabilities. You need to ensure that the compensation being offered is really going to be ample enough to cover your medical costs (like therapies and treatments you have undergone and might need in the future), lost wages, and any other damages–before you sign.
Conferring with a Legal Advocate: An attorney can assist you in inspecting the current terms of existing contracts, plotting a sturdy severance agreement, and negotiating for more agreeable conditions in these agreements on your behalf.
Evaluating the Tax Consequences: Severance payments can have tax implications, so conferring with a tax professional may help circumvent unforeseen monetary blunders or financial surprises.
What You Need for Constructing a Stabil Strategy
After suffering an injury at work, taking deliberate and immediate measures can help to strengthen your position in negotiating compensation. As an independent contractor, you should consider taking the following actions:
Start, whenever possible, by immediately documenting all details related to the incident. Photographs and any footage of the scene, medical evaluations and bills, and witness statements are key elements to serve as proof during negotiations or any legal proceedings. Continue to build upon the initial documentation as time transpires. Further, also compile any of the related communication between yourself and the hiring entity or client and any members of their legal team should be securely stored. Consider keeping hard copies of everything. Documentation could also be from prior to the date of the injury. For instance, you may have voiced concerns over safety issues and oversights. Your effort in collecting and organizing these items will be worthwhile and even appreciated, especially under a legal lens, which brings us to the next measure: consulting a California employment lawyer to assess your situation. An attorney will prove to be can help determine the liability of the matter and identify the best possible approach to securing your compensation. Lastly, but most importantly, verify your actual classification. If yours is a case of misclassification, you could be missing out on serious benefits strictly reserved for employees.
California’s Gig Worker Protections
California implemented legal measures that support gig workers. Assembly Bill 5 (AB5) is one of those legal efforts employed by California. The law reclassified many independent contractors as employees, granting them access to workers’ compensation. However, AB5 does have several exemptions, leaving many contractors on their own without these protections.
For those who remain classified as contractors, there are other legal provisions. Personal injury claims can be pursued against the hiring entity when negligence or unsafe conditions contribute to the accident. Such claims can serve as recourses to severance agreements.
Moving Forward: Getting Financial Footing in Recovery
Sustaining an injury as an independent contractor means getting to work to uncover your path to compensation. It’s also going to call upon strategy and accuracy. While contractors are not automatically entitled to severance, pursuing a severance agreement or filing a personal injury claim can offer financial stability. Establishing the hiring entity’s responsibility for your injury–whether through misclassification or unsafe working conditions–can significantly support your case.
If you’re dealing with the complexities of an injury as an independent contractor, consulting an experienced attorney can make a world of difference. They can help you uncover options, get through negotiations and strike a severance deal, pursue a successful personal injury claim, or address intentional and unlawful misclassification. By taking decisive action with an experienced California employment attorney, you can protect your rights and your financial future.
