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What Impacts Do Personal Injury Claims Have: Independent Contractor vs Employee

In California personal injury claims, making the clear distinction between independent contractor or employee is vital. Misclassification affects many elements, including workers’ rights and the ability to claim compensation for workplace injuries. However, the difference between these two types of workers can be obscured and hard to comprehend. Let’s explore the defining characteristics of these worker classifications, the impacts of your employment status on an injury claim, and the legal implications of misclassification. SANFORD A. KASSEL, A Professional Law Corporation’s San Bernardino employment attorneys can help you with this.

Employment Statuses: What’s the Difference?

It’s not just a technicality. The legal disparity and difference between independent contractors and employees fundamentally affect your rights. Employees work under the direct supervision of their employer, which makes them entitled to benefits like health insurance, overtime pay, rest breaks, and workers’ compensation. Alternatively, independent contractors are considered self-employed, so typically, they won’t receive these types of protections. Independent contractors operate under specific contractual agreements with various terms and obligations. Often, they must use their own resources and tools and decide how to complete their project or tasks without the constant oversight of a boss. They may agree to a deadline and sign an agreement stipulating specific parameters, but how they get to the finish line is on them.

California law uses a strict test known as the ABC Test to determine worker classification. The test requires you to meet the following:

  1.   The worker must be free from the control and direction of their hiring entity.
  2.   The work executed must be outside the usual course of the hiring entity’s business and practices.
  3.   The worker must be engaged in an independent trade occupation or business of the same nature as the work performed.

Failure to fulfill any of these benchmarks categorizes the worker as an employee rather than as an independent contractor. Misclassification can trigger significant legal consequences and lead to a potential loss of benefits for workers. Employees can also encounter these and other issues, especially concerning workplace injuries.

Employment Status Impacting Injury Claims

Employees who are injured at work generally qualify for workers’ compensation benefits. These protections and benefits can cover various items, including medical expenses, lost wages, and rehabilitation. However, independent contractors are not covered by workers’ compensation in most, if not all, instances. These unique differences can leave independent contractors or 1099 employees vulnerable and responsible for their own medical bills and recovery costs unless they can prove the injury was due to another party’s negligence, in which case a personal injury claim may be filed.

The Legal Implications of Misclassification

Misclassification transpires when a worker is labeled as an independent contractor. However, they’re performing duties and operating under conditions that would classify them as employees under the California legislature. It’s not uncommon to see this happen, as some employers may intentionally misclassify workers to avoid having to provide benefits like workers’ compensation, health insurance, and overtime pay.

If misclassification is successfully demonstrated, i.e., proven, workers may be entitled to retroactive benefits, including workers’ compensation, for any injury sustained while on the job. Misclassification affects a worker’s ability to claim compensation and exposes an employer to legal penalties and even lawsuits. Employers found guilty of classifying their workers can face financial damages and penalties, back wages, and civil liability for any injury sustained.

Pursuing A Personal Injury Claim as The Independent Contractor

If you were an independent contractor and you were injured on the job, there are options at your disposal beyond just workers’ compensation. You may be able to file a personal injury suit if your injury was caused by the negligence of another party, including third-party vendors or contractors. To succeed in a personal injury claim, you must demonstrate that the other party owed you a specific duty of care which they breached. Then prove how that breach directly resulted in the injury.

Recoverable damages in a personal injury claim can include:

  •   Medical expenses, including ongoing treatment and rehab rehabilitation costs.
  •   Lost income due to the injury, as well as a loss of future earning potential or capacity
  •   Pain and suffering, which covers non-economic damages related to emotional or physical distress caused by the injury.

Securing compensation can be an uphill road, especially for independent contractors, who often have to negotiate with insurance companies while navigating legal systems without the typical support that employees receive through their worker compensation claims.

Why You Should Consider Hiring an Attorney

Navigating the legal complexities of personal injury claims, especially in misclassification cases, can be overwhelming. It’s imperative that your case is not only handled professionally but that your rights are protected throughout the entire process by a lawyer specializing in employment law who understands how to carefully collect detailed and relevant evidence, substantiate and prove misclassification, and who is well-versed in negotiation tactics and legal strategies. All these tools and skills maximize your likelihood of success and potential compensation. 

Additionally, attorneys can help you identify all available legal options, whether it’s workers’ compensation claims, when you have been misclassified, or through a personal injury lawsuit. They also operate negotiations with insurance companies and handle legal documentation, which can amount to a great deal, allowing you to focus solely on your recovery and personal injury cases. 

If you’ve been injured and believe your employment status affects your claim, getting accurate legal guidance from a reputable and trusted source is critical and time-sensitive. Contact an experienced California employment attorney for a confidential and free consultation by calling our law firm at 909-884-6451.

SANFORD A. KASSEL, A Professional Law Corporation

Sanford A. Kassel is one of San Bernardino's preeminent trial lawyers. He has the resources, expertise and raw talent to handle even the most complex personal injury, medical malpractice, wrongful death, and employment law cases throughout Southern California. Sanford has maintained his offices in San Bernardino since he began practicing law in 1981. He is second generation of a multi-generational family of the Kassel/Katz Family of lawyers in the Inland Empire, whose experience spans over 50 years.

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