In New Hampshire, independent contractors, often paid as 1099 workers, are generally not covered by a hiring company’s workers’ compensation insurance because they are not considered employees. Workers’ compensation coverage is usually reserved for W-2 employees under state law.
That said, being paid as a 1099 worker does not automatically mean you are properly classified. If you were hurt on the job, you may still have options, including workers’ compensation benefits in misclassification cases or a separate personal injury claim. A New Hampshire workers’ comp lawyer can help you understand which path applies to your situation.
What’s the difference between an employee and an independent contractor?
New Hampshire workers’ comp law generally assumes a worker is an employee unless the hiring business can show that the worker qualifies as an independent contractor. The key difference really just comes down to control.
Independent contractors typically:
- Control how and when their work is performed
- Use their own tools or equipment
- Work for multiple clients or businesses
- Operate as a business, sole proprietor, or LLC
- Are paid per project or contract, not hourly wages
Employees, on the other hand, are usually directed on where, when, and how to do their work. A written contract or being paid through the Internal Revenue Service as a 1099 contractor does not, by itself, decide your status. Courts and agencies look at how the working relationship functions in practice.
Are independent contractors ever covered by workers’ compensation?
True independent contractors are responsible for their own business insurance and generally do not receive workers’ compensation coverage through the company that hires them. Sole proprietors, for example, are not required to carry workers’ compensation unless they have employees of their own.
However, problems arise when a business treats someone like an employee but pays them as a contractor. This issue, known as worker misclassification, is common in industries like construction and among small business owners who rely heavily on contract labor.
What happens if a worker is misclassified as a 1099 contractor?
If a business exercises employee-level control over a worker but labels them as an independent contractor, the state may determine that the worker was misclassified. When that happens, the employer may be required to provide workers’ compensation coverage and pay associated penalties.
Misclassification cases often involve workers who:
- Follow set schedules
- Work exclusively for one company
- Are told how to perform their tasks
- Use company-provided equipment
- Are supervised like employees
If you were hurt on the job and believe you were misclassified, a lawyer can help assess whether workers’ compensation coverage should apply.
What benefits does workers’ compensation provide?
Workers’ compensation benefits are limited but important. They typically include medical care related to the workplace injury and/or wage replacement for lost income while you recover
Workers’ compensation does not provide compensation for pain and suffering. However, if your injury was caused by negligence and workers’ comp does not apply, you may be able to pursue a personal injury claim against a responsible party and seek broader damages.
Can independent contractors file a personal injury claim instead?
Yes. If you are an independent contractor and your workplace injury resulted from negligence, you may be able to file a personal injury lawsuit against the business or another party involved. These claims are usually paid through liability insurance, not workers’ compensation insurance.
Personal injury claims may allow injured workers to seek compensation for medical expenses and lost wages. Whether workers’ compensation coverage or a personal injury claim applies depends on how you were classified and how the injury occurred.
What should you do if you’re a 1099 worker injured on the job?
If you’re hurt at work as a 1099 contractor, don’t assume you have no options. Your next steps may include reviewing your written contract and work arrangement and understanding whether workers’ compensation laws apply. It may also include filing a complaint with the New Hampshire Department of Labor.
Early legal guidance can help protect your right to medical care and compensation benefits.
Legal help for injured 1099 workers in New Hampshire
Independent contractors don’t receive the same automatic protections as employees, but that doesn’t mean you’re without rights. With a case involving misclassification, a workplace injury, or a negligence claim, the attorneys at Shaheen & Gordon can help you understand your options and pursue the compensation available under the law.
If you were injured on the job and have questions about workers’ compensation coverage or a possible personal injury claim, call (800) 451-1002 or contact us online to request a free personal injury consultation.
