North Carolina Workers' Compensation Lawyers Blog

A recent article in Raleigh's News and Observer discusses a trend that is developing in North Carolina and elsewhere: companies that laid off workers during the past several years are now rehiring a growing number of them. However, they are generally rehiring those workers as contractors, rather than as regular employees.

While the workers are hoping to get permanent employee status after some time, in the meantime they do not receive benefits and are not covered under the companies' workers compensation policies.

If the workers are hired through a staffing company, such as Manpower, they may be eligible for workers' compensation benefits under the staffing company's coverage. However, some workers return to work as self-employed contractors; in such cases, the workers' compensation system would not protect them if they had the misfortune of suffering a work-related injury or illness.

According to the report in The News and Observer, some companies are limiting the duration of contractor employment to 18 months, because some federal courts have held that long-term contractors were similar to permanent employees, and eligible to full benefits.

If you suffer a work-related injury in North Carolina, and you are working as an independent contractor, you should contact an experienced North Carolina workers' compensation attorney to discuss the details of your situation. The mere fact that your employment contract describes you as an "independent contractor" is not enough to cement your status in the eyes of the law.

One danger inherent in the growing numbers of people employed as contractors is the potential weakening of the pact struck by the workers' compensation system between employers and employees. Workers' compensation systems are designed to ensure that workers get the help they need when they are injured or disabled, while the employers are shielded from potential findings of fault and all the costs associated with litigation.

Continue reading "Former Employees in North Carolina Rehired as Contractors" »

Under North Carolina law, most employees are covered by the Workers' Compensation system (except for those working for employers who regularly employ fewer than three employees in one business, or, in the case of agricultural employers, fewer than 10 non-seasonal full-time employees). However, independent contractors are not eligible to receive workers' compensation benefits, and neither are "casual" employees, according to the Workers' Compensation Act. Do you know whether you qualify as an employee or an independent contractor, or whether you are a "casual" employee?

If you have suffered a work-related injury, or if you feel that your work environment has placed you at an increased risk of getting a work-related illness and has in fact caused you to develop that disease, you should contact an experienced North Carolina workers' compensation attorney for a detailed evaluation of your case. Don't jump to the conclusion that you are not an "official" employee. You should discuss your case with an attorney even if you have signed a contract that describes you as an "independent contractor." What determines your status is not the terminology of the agreement, but the real conditions of the employment relationship that existed between you and your employer at the time when the injury occurred. If an employer exercised a sufficient degree of control over the way in which you did your job, you may not be an independent contractor. If the employer provided you with the tools required for your work, set your hours, trained you, or required you to work at the employer's facilities, you may in fact be considered an employee for workers' compensation purposes.

You might also think that you are not an "official" employee because you don't have a written contract with your employer. However, oral employment contracts, if properly proven, are as effective as written ones when it comes to workers' compensation rights. If you had an oral agreement with your employer, consider any actions taken by the employer that might prove the terms of that agreement, and discuss your situation with an attorney.

Continue reading "Are You Covered by North Carolina's Workers' Compensation System?" »