In Kentucky, full and part-time employees who suffer work-related injuries or illnesses are eligible to receive workers’ compensation benefits, including paid medical care. While subcontractors are not considered traditional employees, there are certain circumstances under which they might still be eligible for workers’ compensation benefits.
A qualified workers’ compensation attorney who handles workers’ compensation cases for subcontractors can help you understand your rights and whether you are eligible for benefits.
If you’re an injured subcontractor in Kentucky, contact Morgan, Collins, Yeast & Salyer. Our attorneys have recovered more than $300 million in workers’ compensation for injured workers in Lexington and throughout Kentucky. Your consultation is free, and you pay attorney fees only if we get money for you. Call (877) 809-5352 for a free consultation.
Is a Subcontractor Considered an Employee in Kentucky?
Several factors determine whether a subcontractor meets the criteria of an employee, according to the Kentucky Office of Unemployment Insurance:
Control and Supervision or Right to Control
Employers who exercise significant control and supervision over an individual’s work (for example, providing instructions, tools, and materials) suggest an employer-employee relationship rather than an independent contractor arrangement.
Integration into Business Operations
If your work as a subcontractor is an integral part of the contractor’s regular business operations, it strengthens the argument for potential eligibility for workers’ compensation benefits.
Economic Dependence
You might qualify as an employee if a business or contractor relies heavily on your labor for its economic benefit.
Contractual Agreements
The terms of your contractual agreements can also help determine your eligibility for workers’ compensation benefits. If the agreement explicitly states that you are an employee or contains language that suggests an employment relationship, it can support your claim.
Differentiating Subcontractors and Employees
If you meet the criteria of an independent contractor, you might not be eligible to receive workers’ compensation benefits. Kentucky employment law is complicated. To add to the confusion, some businesses misclassify employees as independent contractors to avoid providing certain benefits.
As experienced workers’ compensation attorneys, here are some factors that can help you understand the difference between subcontractors and employees:
- Relationship: An employee works directly for an employer under an employment contract, while a subcontractor is an independent person or business that enters into a contract with another party, typically a general contractor or company.
- Control and independence: Employees work under the direction of their employer, who dictates their tasks, work schedules, and methods. Subcontractors, on the other hand, generally have more independence and control of their schedules. They have more flexibility in deciding how, when, and where to perform the contracted services.
- Tax and legal status: Employees are typically subject to various employment laws, such as minimum wage laws, overtime pay, workers’ compensation, and employment taxes. Subcontractors, being independent businesses, are responsible for their own taxes, health insurance, and compliance with relevant business laws.
- Benefits and protections: Employees may be eligible for various benefits provided by their employers, including health insurance, paid time off, and other employee benefits. Subcontractors are generally not provided the same benefits as employees.
- Duration and scope of work: Employees often have ongoing employment relationships with the employer. Their work is usually an integral part of the employer’s regular business operations. Subcontractors are usually hired for specific projects or specialized services. They may work with multiple clients simultaneously.
- Work relationship: Employees generally have a closer and more direct working relationship with the employer. Subcontractors provide their own tools, equipment, and expertise to complete the contracted work.
Contractor vs. Subcontractor
There are situations where a subcontractor may qualify to apply for workers’ compensation benefits. However, some businesses misclassify workers as independent contractors to avoid paying workers’ compensation benefits.
Here are some critical differences between contractors and subcontractors.
A contractor is a person or a company that is:
- Hired to perform a specific task or project for another party
- Responsible for overseeing the entire project, coordinating the work, and ensuring its successful completion
A subcontractor is an individual or a company hired by a contractor to perform a specific portion of work within the larger project. They often have specialized skills.
Subcontractors are typically:
- Specialized in a particular area, such as plumbing, roofing, painting, or information technology
- Delegated certain tasks
Who Is Liable if a Subcontractor Is Injured on the Job?
The Kentucky Workers’ Compensation Act (KWCA) ensures that injured employees may file claims for workplace injuries on a no-fault basis. The KWCA protects employers from lawsuits by injured employees for workplace accidents.
However, subcontractors who are not covered by workers’ compensation insurance might be entitled to pursue legal action and hold contractors or property owners accountable for a workplace injury caused by negligence. If the injury occurred due to the negligence of the primary contractor or employer, such as failing to provide a safe working environment or not following safety regulations, the negligent party may be liable for the subcontractor’s injury.
Indemnification clauses may also determine who is liable for a subcontractor’s work-related injury. Such clauses can specify that the subcontractor assumes liability for injuries to its employees, regardless of fault, or they can require the subcontractor to indemnify the primary contractor for any claims arising from the subcontractor’s employees.
What Happens If the Subcontractor Does Not Have Insurance?
The Kentucky Workers Compensation Act requires businesses to provide workers’ compensation coverage to employees, including the employees of any uninsured subcontractor the business hires.
If a subcontractor does not have insurance and gets hurt on the job, the situation can become complicated and result in financial implications for all parties involved. Some businesses may take the position that their contract workers are independent contractors, leading to disputes after serious accidents.
As workers’ compensation attorneys, we encourage general contractors and subcontractors to review and understand the terms of their agreements, including insurance requirements and indemnification clauses, to mitigate the risks associated with workplace injuries.
Our attorneys at Morgan, Collins, Yeast & Salyer have a thorough understanding of Kentucky workers’ compensation law and can help injured workers pursue their rightful benefits.
Here are a few possible outcomes:
- Workers’ compensation: If a subcontractor qualifies as an employee under Kentucky law, the subcontractor could receive workers’ compensation benefits through the general contractor or business that hired the contractor, depending on the circumstances.
- Personal injury lawsuits: Injured subcontractors may file a personal injury lawsuit against a negligent contractor or property owner. They may seek compensation for medical expenses, lost wages, pain and suffering, and other losses.
Subcontractor Rights in Kentucky
In Kentucky, subcontractors have certain rights and protections under state law.
If you are an uninsured subcontractor and you have been injured, you may still be eligible for workers’ compensation through the general contractor or business that hired you. If an employer has said you are not eligible for benefits, you should talk to a knowledgeable workers’ compensation attorney before accepting “No” as the final answer.
Many employers believe incorrectly that if they issue a worker a 1099 form with no taxes withheld, that the individual is automatically classified as an independent contractor.
Kentucky law requires businesses to provide workers’ compensation to any uninsured subcontractors that they hire.
Our attorneys at Morgan, Collings, Yeast & Salyer are known for the Kentucky Courage we bring to each legal battle for benefits for injured workers. We’re honored that many injured Kentuckians have turned to us for help and that we have been able to help them. We would like to help you too, if possible.
Contact Our Workers’ Compensation Lawyers in Kentucky
If you are a subcontractor who has been injured on the job in Lexington, you owe it to yourself to understand your rights and legal options under the Kentucky workers’ compensation law. Our attorneys can help you understand whether you have a valid claim for workers’ compensation benefits. If so, we can help you pursue all the benefits provided by law. Fighting with a reluctant employer or insurance administrator on your own is the last thing you need, especially when you are recovering from a serious injury. Let an experienced workers’ compensation lawyer with Morgan, Collins, Yeast & Salyer fight for you.
