What is an independent contractor?
Any business, corporation, or individual that provides products or services to a business entity and is specified contractually or by verbal agreement is referred to as an “independent contractor.” According to the IRS tax codes, they are not defined or recognized as an employee of that business or corporation. They typically work as they are required to and are usually subject to what is called the Law of Agency.
Additionally, independent contractors (hereinafter referred to as IC’s) are responsible for paying their own federal and state taxes; this is not the responsibility of the business, corporation, or individual who has contractually procured the IC’s products or services. Compensation is normally made on a freelance basis and the IC may be working through a limited company which they own themselves or via what is called an “umbrella company,” a company that acts as the agent for the IC.
Does worker’s comp cover the independent contractor?
Under the worker’s compensation laws of the state of Georgia, independent contractors are not covered for any injury sustained while performing their work. However, the definition of an independent contractor under state statutes has very specific guidelines in order to determine if the individual is an employee or an IC. Employers do not always use this definition correctly or properly. Additionally, the IRS’ guidelines regarding IC’s are not followed by worker’s compensation law.
For these reasons, this is a very problematic area. However, it is extremely ironic that an individual who has opted for being an independent contractor and who engage in dangerous or high risk occupations are not covered by Worker’s Compensation Insurance based on their independence or freedom from an employer. But the fact that employers would love to classify employees as independent contractor is what leads some to cheat and do exactly that so they are not responsible for worker’s comp benefits.
The bottom line is that if a business owner or corporate entity has 3 or more individuals working for them and they require a method, manner, time, and the type of work that the individuals are expected perform, they cannot classify the individual as an IC. Any business owner who employs 3 or more individuals is required to carry Worker’s Compensation Insurance. It is not surprising then that some employers try to “cheat the system” in order to avoid purchasing this type of coverage.
If you would like more information regarding the independent contractor/worker’s compensation issue, please feel free to contact us at our website. We will be happy to answer any questions you may have and provide you with additional information.
Filed under Employee vs. independent contractor, Georgia Workers' Compensation by 
Workers’ Compensation Insurance can cover mental conditions. However, for this to happen, you really need to be able to link the mental condition to a specific event – such as a traumatic event experienced on the job or the development of a physical problem which then lead to your mental problem. Mental health issues are rarely compensable in and of themselves; linking them to physical events is key to receiving workers’ comp benefits based on psychiatric issues.
The argument would go something like this: At such and such time, you were injured on the job, at which point in time you begin exhibiting the signs of depression. The depression is clearly related to your job injury, and thus you should be eligible for Workers’ Compensation. Another example would be an individual having a heart attack due to the stress of their job, and in the aftermath developing an anxiety disorder which has debilitating consequences.
In any event, to get workers’ comp benefits, the primary condition or injury should really be physical in nature; however, mental conditions of the person would definitely be taken into consideration. Just know that for the most part, it must be proven that the mental condition was a direct result of a work environment that was not normal or a specific triggering event/injury.
Which leads to a last point – you will need evidence to show that this is the case. Naturally, something like a psychiatric evaluation would be required in order to determine whether a mental condition exists and whether it resulted directly from performing one’s job responsibilities.
Mental Health Issues and Workers’ Comp Case Study: The case of “Ms. D”
Ms. D experienced a head injury while on the job and was treated for it. However, she has been plagued with recurring headaches since the injury and treatment occurred. According to Dr. X, Ms. D suffers from continual headaches, and medical reports show that the headaches appear to be a direct result of the original injury and the medications taken as part of treatment.
In addition to the above, though, Ms. D is also anxious, depressed, and having difficulties sleeping. Consequently, she was fired from her 25-year job and hasn’t worked since. To deal with her mental health issues, she needs psychiatric care for depression, and relaxation techniques as prescribed by Doctors X and Y. She has been placed on “no work” status, and the net result of all of this will require that she receive TTD payments.
As her lawyer, I looked at all this information and was able to argue for a clear connection between the initial traumatic injury and the ongoing headaches and psychiatric issues. Treatment for both of these ongoing issues was pricey (we reviewed the costs and quotes for ongoing care), and we calculated a settlement amount for our client based on future medical care, follow-up appointments, future medications, and TTD requirements. Based on all the above, we demanded settlement of “X” amount on behalf of Ms. D’s and were able to successfully settle.
In conclusion, this was a case where we were able to get compensation based partially on mental health issues, but the key was clearly tying those issues to a physical event – in this case an on the job head injury.
Filed under Case studies, Depression by
Workers' Compensation Insurance and Occupational Disease/Injuries
As you may already know, Workers’ Compensation insurance is one of the most widely accessible entitlement programs in the US today. It is most commonly referred to as a series of paid benefits available to any employee who is injured on the job or becomes ill as a result of performing their jobs. Federal and state laws require all employers to provide Workers’ Compensation benefits to all employees, and it is usually available through a private carrier. Additionally, employees are paid these benefits regardless of whose fault the accident or injury is.
Workers' Compensation insurance can cover occupational diseases and injuries like asbestosis/mesothelioma, repetitive motion injuries, and even injuries to the immune system due to exposure to any number of allergens or toxins. In the following workers' comp case study, for example, my client sustained severe and debilitating injuries to her immune system due to work-related exposure to latex.
Latex allergy case involving hospital worker
A hospital employee, we’ll call her Jane, recently filed a Workers’ Compensation case with us due to how sick she has become because of an allergenic reaction to latex encountered on her job. Beginning in 1986, Jane began working for a hospital pediatric oncology/hematology unit as a staff member. She was well-liked by her fellow employees and was considered to be an excellent employee.
However, she began experiencing a variety of symptoms such as breathing difficulties, discomfort at work, and severe headaches. At that time, Jane was referred to the employee health department, where she would be diagnosed with a severe latex allergy after numerous tests. This allergy has impacted her life severely and resulted in ongoing health problems. She initially took a 6-month leave of absence from her job, receiving no TTD (Temporary Total Disability) while she was not working.
In order to avoid any contact with latex, when she returned to the job, she took a position in the hospital’s call center. Three months later, she encountered another allergenic reaction to latex while working the call center and left that department. Although her employer subsequently set her up to work from home with cables and wires attached to a computer modem, the cables were coated in latex and she had yet another flare-up. As a result, she can no longer work at all, as her latex allergy has severely damaged her immune system.
Today, Jane cannot work, and she is currently taking a number of medications as a result of her allergy to latex. These medications include Adavair, Albuterol, Nascort, Singulair, and Toanex. As if these weren’t enough, she has been forced to carry an Epinephrin pin with her at all times.
On a closing note, where the above case is concerned, we demanded “X” amount in order to settle the case once and for all, as well as see to it that Jane is compensated for what she has endured and how her financial earnings and future have been severely impacted by her work-related injuries. This is why it pays to have a workers’ compensation attorney on your side; we can help maximize your benefits and medical care and help settle your case to that you get the best outcome possible.
Filed under Case studies, Occupational Diseases/Injuries by
Recently I had a workers' comp case where my client suffered from a very severe and complex ankle injury and had to undergo 2 surgeries over a period of several months. Even after the surgeries, she still required ongoing medical care and had limited range of movement, resulting in her inability to work certain jobs.
When her initial workers' comp benefit was calculated, she was awarded a weekly TTD benefit that was a gross underpayment when you looked at all the care she needed and the specifics of her case. After a careful review of the case, it became obvious that her benefit was mis-calculated due to her position as a waitress – where a lot of the money she brought in was due to TIPS.
You see, many times servers and bartenders and other workers who bring in significant income from tips end up experiencing improper wage calculations and mis-calculations of benefits owed when in pursuit of workers' comp cases. The same is true for workers who work off commissions or receive large bonuses.
In my client's case, we were able to get her the benefits she deserved (we ended up securing higher TTD benefits, plus TPD and PPD as well), and we were also able to re-calculate her wages to reflect a more accurate picture of what she had been making at the time of the accident. This is why it pays to have a workers' comp attorney helping you with your case – we see these situations often and can often help you maximize your benefits.
In any case, the tip of the day is this: To anyone bringing in significant income from tips, commissions, or bonuses, KEEP GOOD RECORDS in the event that you are one day injured and have to pursue a workers' comp case!
Filed under Foot/crush injuries, Income benefits, Maximizing your settlement by
Recently I had to handle a situation for a client when the workers' compensation insurance company denied treatment for migraine headaches caused by medication given to my client by an authorized physician.
In this case, my client hurt his back badly about a year previously when he was lifting HVAC equipment. For several months, the insurance company fought us in our attempt to get proper medical treatment but eventually I was able to get him to a good doctor who scheduled him for surgery to repair a large herniated disc in his lumbar spine.
Post surgery, my client developed complications when fluid began to build up in the spinal canal. The surgeon prescribed a strong medication to help drain the fluid and prevent an infection. Unfortunately this strong medication resulted in migraine headaches.
Although the migraine headaches were new, the law in Georgia is clear that medical treatment and medications necessary to treat a complication from a compensable injury is also compensable and must be paid for by the insurance company. And, in fact, the insurance adjustor originally assigned this case, authorized my client's pharmacy to dispense his migraine medication
Several weeks into the treatment regimen, a new adjustor was assigned to this claim. The new adjustor decided that the migraine headaches were not related to the work injury and she canceled the pharmacy authorization. Suddenly, my client was left without medication to treat his frequent and painful migraine headaches.
As you might imagine, this development left my client in a great deal of pain. I immediately got on the phone with the adjustor but she would not change her position. I then wrote the treating doctor to request a statement from him that "connected the dots" and related the migraine headaches to the original work injury. I also got on the phone to the defense attorney representing the employer/insurer to demand that my client's prescription be approved. It took about 5 phone calls until I finally got the defense attorney to call me back – he acknowledged that our position was correct and he was able to convince the adjustor to start the medication authorization again.
This type of arbitrary action by workers' comp insurance adjustors is all too common. Adjustors come and go and a reasonable, knowledgeable insurance claims person can be replaced by someone new who is inexperienced, stubborn or even vindictive. As a claimant's lawyer, I make every effort to stay on top of problems like the one my client experienced and to take whatever steps are necessary to solve these problems.
The economic downturn has led to an increase in companies that try to cut payroll costs by illegally classifying workers as independent contractors rather than employees. This practice costs the government billions in lost revenue and can leave workers with nothing when they are hurt on the job or are laid off. The Internal Revenue Service and 37 states are starting to crack down.
It can be a blurry line 
between employee and contractor status, but it is important to know which you fall into. These are some tips for determining your status to make sure you receive the benefits you deserve and to prevent yourself from being taken advantage of by companies engaging in unlawful practices.
Companies Worked For – A key indicator of independent contractor status is when the worker does the same work for multiple companies.
Expense Reimbursement – Independent contractors are more likely to have expenses that are not reimbursed. Employees are typically reimbursed for business-related expenses.
Workers’ Investment – Independent contractors most often have a significant investment in the services they use, most significantly an office or work space, and are not provided tools, equipment, or supplies by employers.
Pay Periods – Independent contractors are typically paid by the job, while employees are paid by the hour, week, or month.
Pay Rate – Independent contractors make a profit or loss on the job, while employees receive paychecks regardless of whether the company makes money.
Permanency – If a worker is hired with the expectation that the job will be permanent, or until further notice, they are generally an employee.
Benefits – Independent contractors are typically not provided benefits, while employees receive benefits such as insurance, pension plans, vacations, or sick days.
Have you been injured on the job and are not sure what category of worker you fall into? Feel free to use the Free Case Evaluation form on this website to discuss your particular circumstances with an experienced workers’ comp attorney.
Filed under Employee vs. independent contractor by
Last July, I wrote a post on this blog about how your Facebook profile could be used against you in your case. The Georgia State Board of Workers' Compensation will allow defense counsel to introduce status updates and pictures to challenge your assertions that you are injured and cannot work. This is in addition to the surveillance and other investigation that defense counsel use to impugn your credibility.
More recently I have learned of a case where the insurance company's defense lawyer used a "request for the production of documents" to demand that an injured claimant turn over his personal computer to be examined by the lawyer. As you may know, when you file a workers' compensation claim in Georgia, both sides are allowed to demand information from the other per Georgia' "discovery rules."
Apparently, in this case, the insurance company believes that the claimant's hard drive will reveal damaging information – perhaps photos, evidence of work or physical activity, or it may be just a fishing expedition.
Now, this was not my case, and at this point, at least, this demand for the claimant's computer has not become a regular part of defense counsel's arsenal, but I think that this type of request sets a very bad precedent. I learned about this case in a monthly meeting I attend with a few other claimant's lawyers who get together to discuss current developments in the law and winning strategies. All of us in last month's meeting were somewhat taken aback by this discovery request as well as the presiding judge's approval of the request. We all agreed that if any of use are involved in a case and the insurance company asks to look at our clients' computers, we will fight this request vigorously.More on Judge Orders Injured Worker to Allow Insurance Company to Examine His Computer
