Am I covered by workers’ compensation insurance?
If you are an employee in the state of California, you are probably covered by workers’ compensation. There are some important exceptions, however.
Every employer in the state of California must carry workers’ compensation insurance for the benefit of their employees, even if they only have one employee. Even sole proprietors can purchase coverage for themselves, although they might be better off buying health, life and disability insurance instead.
If you are an employee, you are likely covered by workers’ compensation, which will pay your medical bills and a portion of your wages if you get injured on the job. However, there are a few narrow categories of employees who are not covered by workers’ comp, and one very large exception: independent contractors. Learn more below about who is and is not covered by workers’ compensation, and reach out to a workers’ compensation attorney if you get hurt or sick at work and think you should be entitled to benefits you are not getting.
Who is covered by workers’ compensation? The statutory definition
California workers’ compensation law uses a very broad definition to make just about every employee eligible for coverage. According to California labor law, workers’ compensation covers “every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed.” This definition is intended to cover employees in every work environment.
Beyond that inclusive definition, the statute goes on to make sure the following categories of employees know they are covered:
- Aliens and minors (includes undocumented immigrants/”illegal aliens”)
- Elected and appointed paid public officers
- Officers and members of boards of directors who render paid service for a corporation fully owned by the officers and directors, unless they choose to be excluded from coverage
- A person employed by the owner of a residence as a caretaker of the home or children, including a person who performs domestic service comprising in-home supportive services
- Prisoners engaged in assigned work or employment
- Working members of a partnership or limited liability company, except that the general partner or LLC managing members can choose to be excluded
- A person committed to a state hospital while engaged in and assigned work in a vocational rehabilitation program
- A “gig worker” such as a delivery driver or rideshare driver defined as an employee by law instead of an independent contractor, provided certain provisions outlined in the law are met
- A person whose employment training is arranged by the State Department of Rehabilitation with any employer
So who is not covered? Statutory exclusions
The law does exclude certain types of employees from coverage. The statute includes about 20 kinds of employees who do not get workers’ compensation, but these exceptions are very specific and narrow, compared to the broad inclusions described above. A few of the exceptions are noted below:
- A person employed by the owner of a residence as defined above but who is the parent, spouse or child of the employer
- A person performing services in return for aid or sustenance only from a religious, charitable, or relief organization
- Employment contracted for less than 52 hours
- Employment contracted for less than $100
- A volunteer for a public agency or private nonprofit who doesn’t receive any remuneration other than meals, transportation, lodging, or reimbursement for incidental expenses
Independent contractors are not covered by workers’ compensation
One significant exception to workers’ compensation coverage is people who are hired as independent contractors rather than employees. Independent contractors are typically hired to complete a specific project, but they might be on-board for a long time, and it can become confusing whether they are actually independent contractors or employees. Employers routinely misclassify their workers, either out of a mistaken understanding of what makes someone an independent contractor or in a deliberate attempt to avoid paying payroll taxes, employment benefits and workers’ compensation insurance.
Under current California law, an independent contractor is someone who meets all three of the following conditions:
- the worker is free from the employer’s direction and control when it comes to performing the work contracted for,
- the worker is performing work outside the usual course of the employer’s business, and
- the worker is customarily engaged in an independently established trade, occupation or business of the same nature as that involved in the work performed
Unless all three of these criteria apply, you are likely an employee and entitled to workers’ compensation coverage, even if your employer tells you otherwise. Contact an attorney if you get hurt at your workplace but are told you are an independent contractor and not entitled to workers’ comp.
Almost all California employers must carry workers’ compensation insurance or self-insure
If your employer does not carry workers’ compensation insurance, they are most likely in violation of the law and can be subject to criminal prosecution as well as hefty fines. Additionally, they will be directly responsible to pay your bills related to your injury or illness, and you could even file a civil action holding your employer liable for money damages and recover even more than workers’ comp offers.
If you get injured on the job, follow the directions posted at your workplace for filing a workers’ compensation claim. If you run into any kind of trouble, an experienced workers’ compensation attorney can probably help you get the benefits you are entitled to.