Rules surrounding subcontractors and contractors can be confusing, even for experienced injury lawyers. Your ability to sue for your own injuries or a loved one’s death depends heavily on our Workers’ Comp laws and whether or not the worker was covered.
In many cases, so-called “subcontractors” are actually just employees of the contractor or firm they work for. This means they should be covered under Workers’ Comp. In other situations, they are still covered under the general contractor’s Workers’ Comp, but if there is no coverage for them, then they are entitled to lawsuits for work injuries. Families generally follow the same rules for death cases as the worker would have followed for an injury.
Call our Certified Pennsylvania Workers’ Compensation Lawyers at Cardamone Law at (267) 651-7945 today.
Workers’ Comp Rules, Generally
Before going into the specifics of Workers’ Comp coverage for a subcontractor, it is important to understand what Workers’ Compensation usually does.
Coverage for Employees Only
Workers’ Compensation pays no-fault benefits to employees for injuries within the scope of their jobs. Only employees are covered, but as we will discuss below, this may include subcontractors in some cases.
Work-Related Injuries Required
An injury must be work-related, meaning one of these is true:
- It occurred out of the scope of your work. g., while performing work tasks or doing things your boss requires of you.
- It occurred because of dangers in your workplace. g., because of a fall from unsafe scaffolding or while walking on a slippery surface.
Disabling Injuries
Medical coverage should be paid for all injuries, but you need a disabling injury to get wage-loss benefits. This usually requires missing at least 7 days of work.
Death
A death from a work-related injury is also covered, whether the death happens immediately in the accident or over time because of an occupational illness (e.g., cancer, asbestosis, mesothelioma).
Benefits Available
Workers’ Compensation typically pays these areas of benefits:
Medical Coverage
Coverage for all medical care required to treat a work-related injury should be paid for. This typically gets paid directly to the provider, though settling a claim can give you the money in a lump sum so you can put it toward later care needs.
Wage-Loss Benefits
If you cannot work at all because of the accident, you can recover 2/3 of your pre-injury wage as wage-loss benefits. Your specific rate may vary, but it cannot go below the lesser of half the statewide average or 10% of your pre-injury wage, and it cannot go over the statewide average.
If you can work partially because of the injury, your pay rate is 2/3 of the difference in what you made before and after the injury.
Specific Loss
If you suffer a list of certain amputations, lost function, lost vision/hearing, or facial scars, you may qualify for an additional 2/3 of your wages. This has a floor at half the statewide average wage and a cap at the statewide average wage.
The duration is listed in the Workers’ Comp Act for each qualifying injury.
Death Benefits
If your loved one died, our attorneys for injury and death to subcontractors can help you recover certain damages for your loss:
- Their medical care costs
- Lost wages, paid at a rate that changes based on how many members there are in your family
- Up to $7,000 for burial costs.
Talk to our attorneys about the specifics of these benefits and whether any additional costs may be covered.
What is an “Employee” vs. a “Contractor” for Workers’ Comp?
Employees are covered under Workers’ Compensation, but independent contractors are not. “Subcontractors” are a type of contractor, but they might qualify as either one of these, depending on the situation.
Definition
An employee is a worker whose work is controlled by their employer. This typically means…
- Their employer tells them when, where, and how to do their job.
- They work in the same kind of work as the employer hiring them.
- They are paid with a W-2 instead of a 1099.
- They work for a salary or hourly wage.
- They work under their own name.
An independent contractor is deemed self-employed. This typically means…
- They control the time, place, and manner of their own work.
- They work in a different industry or trade than the client hiring them.
- They are paid with a 1099 instead of a W-2.
- They work on a per-project basis and just deliver the final product.
- They may work as an LLC/company name or under their own personal name.
Multiple factors weigh more heavily in favor of a given status, but there is no bright-line rule.
How is Status Determined?
Generally, the employer will decide, based on these factors and agreements between the employer and worker, what their status is. If they say they are not an employee, they will deny Workers’ Comp benefits.
The law generally presumes workers are employees, so this does not always comport with the law.
What if There is a Problem with the Worker’s Status?
If the employer is wrong about your status, then when we file a Claim Petition, we can claim that they are wrong and the claim should be granted. Then, it will be up to the Workers’ Comp Judge (WCJ) to determine what the worker’s actual status is.
This may require appealing the case to a court if the WCJ’s determination is wrong or case law needs to be adjusted to account for a situation like yours.
Do Subcontractors Qualify as Employees or Contractors?
Many subcontractors do qualify as employees because their general contractor controls their work too closely for them to be considered self-employed. There may also be an agreement with the contractor to treat the subcontractor as an employee and cover them with Workers’ Comp.
Especially in construction projects, project leads and contractors may require everyone to be insured down the chain of command to prevent lawsuits and legal issues.
Is the General Contractor or the Construction Firm Responsible for Insurance?
Your “employer” pays your Workers’ Comp, but who your “employer” is on a construction site might change, depending on the contracts in place. In many cases, the top-level employer will be the one paying for Workers’ Comp for all workers down the chain of command.
In other cases, you might actually have Workers’ Comp insurance for yourself and your employees as a subcontractor or contractor.
Call Our Attorneys for Injuries and Death to Subcontractors in Pennsylvania
Call (267) 651-7945 for your free case review with our lawyers for injuries and death to subcontractors.
