1099 Employees & Independent Contractors In Kentucky

If you've been injured on the job and your employer pays you on a 1099 instead of a W-2, you may have already heard something like this:

"You're an independent contractor, so workers' compensation doesn't cover you."

Never assume that's true until you've spoken with a qualified attorney.

One of the biggest mistakes we see is injured workers giving up on a claim simply because their employer labels them an "independent contractor." In Kentucky, that label is not the final answer.

Whether you're entitled to workers' compensation benefits isn't determined solely by the tax form you receive at the end of the year. Instead, Kentucky law looks at the actual working relationship between you and the company to determine whether you were truly operating an independent business or were, in reality, an employee entitled to workers' compensation benefits.

If there's one misconception we wish every Kentucky worker understood, it's this:

Receiving a 1099 does not automatically mean you are screwed out of workers' compensation coverage.

Every year we speak with injured workers who assumed they had no case because they were "paid as a contractor." Many are surprised to learn that Kentucky courts don't simply accept whatever label an employer places on the relationship.

Instead, they look beyond the paperwork and evaluate how the work was actually performed.

No single fact determines whether someone is an employee or an independent contractor.Instead, Kentucky courts look at the entire relationship between the worker and the company. Some of the questions that frequently become important include:

• Who decided when and where you worked?
• Did you have set hours or punch a time clock?
• Were you required to follow the company's instructions?
• Who supplied the tools, equipment, vehicles, or materials? 
• Could you hire someone else to perform the work? 
• Were you free to work for other companies? 
• Were you paid by the hour, by the day, or by the completed project? 
• Did you wear clothing displaying the company's logo? 
• Were you performing the very work the company exists to do? 

No single question controls the outcome. Instead, all of the facts are considered together.

One of the strongest indicators of an employment relationship is whether you're performing the very work the company is in business to perform.

For example, imagine a roofing company hires someone to install shingles but simply calls that person an "independent contractor" and pays them on a 1099. Installing roofs isn't a separate business—it's the very service the roofing company sells to its customers. Under those circumstances, a court may look very closely at whether that worker is actually an employee despite the paperwork.

Now compare that to the same roofing company hiring a dumpster company to deliver dumpsters and haul away debris. Hauling trash is certainly helpful to the roofing project, but the dumpster company operates its own independent business providing a completely different service.

Those are two very different relationships, even though both workers may be present at the same jobsite.

This is exactly why a 1099 doesn't automatically answer the question. The law looks at the reality of the relationship, not simply the label placed on it.

Questions about worker classification arise in far more occupations than most people realize.

Construction workers, roofers, flooring installers, painters, cable technicians, tree service workers, truck drivers, delivery drivers, landscapers, and many others are sometimes paid on a 1099 even though the facts may support an employment relationship.

Every situation is different, but these are exactly the kinds of cases that deserve a careful legal review before concluding you don't have a workers' compensation claim.

One of the biggest mistakes an injured worker can make is deciding not to pursue a claim simply because an employer says:

"You're an independent contractor."

Sometimes that's true.

Many times, it isn't.

Whether someone is an employee under Kentucky workers' compensation law often requires a careful review of the entire working relationship—not just a quick look at a tax form or job title. We've spoken with many workers who were convinced they had no case, only to learn that Kentucky law viewed their employment relationship very differently.

If you've been injured on the job and your employer pays you on a 1099, don't assume you've reached the end of the road. We'd be happy to review your situation, answer your questions, and help determine whether Kentucky's workers' compensation laws apply to your case.

If you've suffered a workplace injury and have questions about whether you're covered by Kentucky's workers' compensation laws, contact Howes & Barnett for a free consultation.

We'll evaluate your employment relationship, explain how Kentucky law applies to your particular situation, and discuss the legal options available to you.