The current law has made this practice a thing of the past, specifically defining an independent contractor and allowing the parties to agree who is responsible for providing work compotes for the staff of the independent contractor. An independent contractor who meets the statutory definition and enters into a mandatory agreement with the employer to verify the independent relationship is not entitled to benefits under employer policy, unless the parties agree otherwise. The staff of the independent contractor, if any, are not entitled to benefits. There is an important exception for the use of DWC-85. Self-employed contractors without employees are legally considered employees of the general contractor and the general contractor is responsible for the remuneration of the workers. The form should not be used for independent contractors without staff. Think carefully about the impact of this second factor on an policyholder`s insurance premiums by thinking about the many scenarios in which companies hire independent contractors who do not have staff. A real estate owner hires a hofmann. A store hires a painter in the moonlight to paint the interior walls of the store. A company hires an IT consultant to correct certain errors in the office network.

An insurance agency employs independent contractors. A law firm recruits an expert. Under the law interpreted by the Supreme Court, all of these companies are considered “general contractors” and must pay for workers` compensation coverage for the independent contractors who hire them. (Note: this part of the law does not apply to an independent contractor without staff providing services to an oil or gas well operator. These workers are subject to a special exemption from this provision of the Workers` Compensation Act.) Any contract between the prime contractor and the general contractor should entrust responsibility for confirming the compensation coverage of the subcontractors exclusively to the general contractor. General contractors should agree on the contract that if it does not require and confirm the existence of such insurance, it could be legally liable for the violation of an employee of the subcontractor. Finally, the general contractor must also agree to defend and keep the principal contractor unscathed in the event of a violation of a direct employee or de jure. The general contractor and the independent contractor with the employees may enter into an agreement in which the general contractor issues insurance coverage for staff compensation to the independent holder and the employees of the independent contractor, even if the independent contractor supports the compensation of his own employees.