When an employer misclassifies an employee as an independent contractor, the employee may be unable to recover from a work injury due to a workers’ compensation claim denial. If your employer has misclassified you as a contractor following a work-related injury, you may be able to resolve the issue with the help of an attorney.
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What Employer Misclassification Looks Like for Chicago Workers
In some cases, employers may misclassify their employees as independent contractors to avoid the need to provide employee benefits or cover payroll taxes. As a result, workers might be unaware of their limited benefits, only to discover that they don’t have them when they need them.
Independent contractors are workers who perform jobs for people and entities, but do not generally have the same access to the benefits seen with employees, from retirement to workers’ compensation. While many employers hire independent contractors, it’s critical for them to clarify that distinction in all documentation. However, employers could decide to intentionally misclassify employees as contractors to avoid liability in the event of a work-related injury.
Misclassification is a serious issue that costs workers tens of thousands of dollars every year, as employees go without benefits that are crucial to their well-being. If an employer deliberately misclassifies you as an independent contractor when you believed the employer intended to make you an employee, you may be able to file a workers’ compensation lawsuit against the liable employer after an injury.
Even if you unknowingly signed an agreement stating that you are working as an independent contractor, it’s up to the Internal Revenue Service (IRS) to determine whether you are an employee based on three key categories related to your work, including Financial Control, Behavioral Control, and the Relationship of the Parties.
Denied Benefits? How Misclassification Impacts Workers’ Comp Claims
When a work injury takes place, employees in Illinois typically have access to workers’ compensation benefits when they file a claim. What is workers’ compensation and how does it work, exactly?
A workers’ comp claim can cover damages resulting from the injury, including:
- Medical expenses related to treating the injury
- Lost income
- Disability benefits
So, what are the requirements for workers’ compensation eligibility? First, you must be a qualifying employee, such as a full-time employee, part-time employee, business partner, or sole proprietor. You must also be able to demonstrate that your injury or illness resulted from a work-related incident within the scope of your employment.
In Illinois, you must also seek treatment for work injuries from an approved medical care provider. Employers typically facilitate this by providing workers with a list of doctors that the insurance plan covers.
If an employer has misclassified you as an independent contractor, you may find that you are unable to recover compensation for your injuries. However, if you are able to prove that your employer misclassified you, you may be able to succeed with a workers’ comp lawsuit against that employer.
The court will decide whether you qualify as an employee. Subsequently, the court will not seriously consider written contracts labeling you as an independent contractor if you do not meet the definition.
What Should You Do Following a Work Injury?
Even if your employer misclassified you as an independent contractor, it’s important to take several critical steps to secure a workers’ compensation claim. These steps involve:
Reporting Your Injury
As soon as the work injury occurs, notify your employer, which will generate an accident report that could prove the nature of your injury for future litigation. Your employer should also provide you with a list of medical providers, but an employer deliberately misclassifying you may neglect to do so.
Seeking Medical Attention
Even if you are without an approved medical provider, it’s critical to seek attention from a medical professional to assess, diagnose, and treat your injury or illness. Medical records can function as critical pieces of evidence proving that your condition is work-related.
Collecting Evidence
Gather as much relevant evidence as possible to prove that the injury or illness is work-related. You should also collect evidence to help prove that you were an employee and not an independent contractor.
Some pieces of evidence in these cases include:
- Medical records, bills, and receipts
- Police reports
- Pay stubs
- Employee training materials
- Work schedules
- Work equipment that your employer provided
All the evidence can be difficult to collect on your own, which is why it helps to have an attorney with experience handling these types of cases.
Filing a Workers’ Compensation Claim
You will be able to file a workers’ compensation claim if you qualify as an employee, filing with the Illinois Workers’ Compensation Commission (IWCC). The IWCC has a digital system called CompFile that allows employees to file a claim online. The system will then require you to submit details about your case before proceeding.
However, before filing, it’s in your best interest to hire an attorney with experience in these matters. There are many pitfalls that could put your case at risk, especially if you are unfamiliar with employment law.
When to Contact a Workers’ Comp Lawyer in Misclassification Cases
If you’ve received a workers’ compensation denial because of employer misclassification in Chicago, it’s important to consult workers’ compensation lawyers to discuss a case. A lawyer in this practice area could evaluate the details of your case to determine what options you have.
The right lawyer could help you gather evidence to prove that you were an employee instead of an independent contractor, and he or she may also be able to demonstrate how your employer intentionally misclassified you to avoid liability.
The following are some ways an attorney could guide you through the legal process to recover compensation:
Assessing the Details of Your Case
Your attorney will look closely at all documentation discussing your employment and the nature of the work you do for your employer. Based on all of this documentation and the nature of your work compared to the legal definition of an employee, your attorney may be able to confirm that your employer misclassified you.
Collecting and Organizing Evidence
Your attorney could gather all relevant evidence and organize it into a strong case, helping you prove both the nature of your injuries and deliberate misclassification.
Not all evidence is easy to obtain, requiring some digging to find what’s needed to prove a claim. An attorney can dig deep and find all the critical evidence to back your case, from medical records and pay stubs to employee-employer communication and video footage of the accident.
Filing a Claim or Lawsuit
Another critical way an attorney could help is by navigating every step of the claims and legal process, whether you file a claim or a lawsuit.
For example, your lawyer could determine the total settlement amount you’re eligible to recover, negotiating with insurers to reach that settlement. Otherwise, you may be unclear about how much your case is worth and settle for an initial offer, which is often far lower than a case’s true value.
You may also decide to file a lawsuit against your employer for benefits or wages you did not receive because of misclassification. Here, your lawyer would gather evidence showing that you suffered damages because of the misclassification.
Without a lawyer behind you, you may inadvertently compromise your case by making the wrong statement or failing to collect sufficient evidence, organize that evidence, or reach a total settlement amount. Conversely, with a lawyer, you can focus on making a medical recovery while your representation handles all legal matters on your behalf.
Protecting Against Retaliation
Some employers may try to retaliate against employees accusing them of misclassification in a number of ways, such as unjust firing, pay reduction, demotion, unfavorable assignments and work tasks, exclusion, and other damaging acts. An attorney would be able to protect against this kind of behavior, helping to secure your employment.
Reach Out to An Attorney Today
If your employer misclassified you and that this misclassification has hindered your ability to recover workers’ compensation, you may have a case against your employer. You may also be able to proceed with a workers’ compensation case with the state’s workers’ compensation agency.
The legal team at Ankin Law understands what these cases entail and how to proceed with a claim or lawsuit. To determine your options with a free consultation, contact us today, and we’ll connect you with an experienced attorney to discuss your needs.
