If you work as a contractor or “independent contractor” in California, you’re likely wondering if workers’ comp actually applies to you. While independent contractors are not eligible for workers’ compensation benefits, very often you are misclassified. You could be an “employee” even if the company that hired you labels you as an independent contractor. California law has strict requirements for this, and you may have benefits you didn’t know you had.
At Ratto Law Firm, P.C., our California workers’ compensation attorneys help you determine whether you’re eligible for benefits. If you are, we help you seek the compensation you are owed.
California’s ABC Test: The Key to Determining Coverage
California uses the ABC Test to decide whether a worker is an employee or an independent contractor for most purposes, including workers’ compensation. With this test, a worker will be presumed to be an employee. To overcome that presumption, the hiring company has to prove all of the following.:
- A: You are free from the company’s control and direction in performing the work.
- B: You perform work that is outside the usual course of the company’s business.
- C: You are customarily engaged in an independently established trade or business.
If the company fails any part of the test, you are legally considered an employee. Employees are covered by workers’ compensation even if your contract, 1099 form, or job title says otherwise.
This means many workers labeled as contractors are actually entitled to full workers’ comp benefits.
Common “Contractor” Roles That Often Qualify as Employees
In California, misclassification is widespread. Workers in the following roles are often employees in actuality:
- Construction subcontractors performing core trade work
- Delivery drivers working for app-based or logistics companies
- Janitorial, landscaping, and maintenance workers
- Freelance laborers working under direct supervision
- Hospitality and event workers assigned shifts by a staffing agency
- Healthcare and caregiving workers assigned by a facility or agency
If the hiring company controls your schedule, supervises your work, or relies on your labor as part of its regular business, you may be an employee under California law.
When Independent Contractors Are Covered by Workers’ Comp
Even if you are a legitimate independent contractor, you may still be covered in certain situations:
1. You’re a Licensed Contractor Working for a General Contractor
California law requires licensed contractors to carry their own workers’ comp insurance unless they have no employees. If you’re injured while working for a general contractor, coverage may come from:
- Your own workers’ comp policy, or
- The general contractor’s policy if they improperly allowed you to work without coverage
2. You’re a Subcontractor Without a Valid License
If you perform work requiring a contractor’s license but don’t have one, California automatically classifies you as an employee of the hiring party. That means you’re covered by their workers’ comp insurance.
3. You’re Misclassified
If the hiring company calls you a contractor but controls your work, assigns tasks, or integrates you into their business, you are likely an employee, and employees are covered.
What to Do If You’re Injured and Told You’re “Not Covered”
Many contractors are denied benefits simply because the company insists they are not employees. If this happens, take the following steps:
- Document the work relationship, including schedules, texts, instructions, jobsite photos, and pay records.
- File a workers’ compensation claim form (DWC-1) even if the employer disputes your status.
- Request a QME evaluation if the insurer denies your claim.
- Consult a workers’ compensation attorney experienced in misclassification cases.
Why Misclassification Matters
Misclassification doesn’t just affect your workers’ comp rights. It impacts your wages, overtime, tax obligations, and legal protections. But for injured workers, the stakes are especially high. Without workers’ comp, you could be left paying for medical treatment and lost wages out of pocket.
California’s laws are designed to prevent this. If you’re performing work that benefits a company, and they control how you do it, there’s a strong chance you’re legally an employee.
Seek Assistance in Getting Your Workers’ Comp Benefits in California
Don’t assume you are out of luck just because you’re labeled and independent contractor. You might be misclassified and owed benefits for your injuries. You may have other sources of compensation too, even if you are ineligible for workers’ compensation.
Our team at Ratto Law Firm, P.C. provides you with the advice and representation you need. Contact us today for a consultation.