Workers' Compensation Coverage Requirements
Whether a worker is covered under the WCL is always a factual determination by the Board. The following examples are intended to be illustrative and not determinative. In each case the determination of whether a worker is covered will be based on the particular facts of a case at the time of the injury.
Example 1.
Doctors and nurses staffing an Emergency Room at a hospital are generally considered employees of that hospital under the Workers' Compensation Law since their services are an integral part of the operations of the hospital and the method and manner of their work is generally controlled by the hospital.
Example 2.
A bookkeeper that works one day per week on-site at the business location of a general contractor is generally an employee of that general contractor, even if that bookkeeper works for other employers on other days.
Example 3.
Persons hired to paint buildings by a painting company are likely to be deemed employees since their services are an integral part of the operations of the painting company, the work of the individual painters is the same as that of the painting company, and/or they are likely using paint supplied by the painting company. (Fair Play Act)
Example 4.
Persons hired by a roofing company to install shingles are likely to be deemed employees since their services are an integral part of the operations of the roofing company, the work of the individual roofer is the same as that of the roofing company, and/or the roofer is installing shingles supplied by the roofing company. (Fair Play Act)
Example 5.
People hired as computer programmers for a computer software company are likely to be deemed employees since their services are an integral part of the operations of the computer software company and computer programming is the same type of work as the computer software company.
Example 6.
A barber rents space from a barbershop owner on a monthly basis. The space includes the chair, sink and other amenities. The store is in a mall and as part of the contract with the mall; the store owner must keep the barbershop open from 10 AM through 10 PM seven days per week. The barbershop owner requires the barber to work on specific days and times. This barber is generally considered an employee under the Workers' Compensation Law since the owner of the barbershop controls the hours that the barber is required to work.
Example 7.
The owner of a large apartment building contracts with a management company to provide a superintendent for the apartment building. The superintendent can be considered the employee of either or both the apartment building owner and/or the management company because each entity controls the superintendent's activities. Accordingly, the apartment building owner needs to obtain a workers' compensation insurance policy since the superintendent's work is integral to the operations of the apartment building. Further, it would be practical for the owner of the apartment building to require the management company to have a workers' compensation insurance policy and obtain a certificate of insurance for this policy. This will help ensure that owner of the apartment building premiums are as low as possible and shield the owner from workers' compensation liability.
Example 8.
The owner of ABC Trucking Inc, a trucking company, hires drivers to drive its trucks. The trucks are all registered with the Department of Transportation under the name of ABC Trucking Inc. The drivers are generally considered employees of ABC Trucking Inc under the Workers' Compensation Law.
Example 9.
ABC Taxi Company Inc. has medallions for 10 taxis. Cab drivers pay a fixed fee to lease the taxis on a daily basis. The taxi drivers are generally considered employees of ABC Taxi Company Inc under the Workers' Compensation Law. Any dispatcher, taxi owner or medallion broker who does not personally drive the taxi 40 or more hours per week must have a workers' compensation insurance policy to cover the drivers of the taxi. In addition, for the lessee to be considered an independent contractor, the owner-operator may not control, direct, supervise, or have the power to hire or fire such lessee (WCL §2 [4]). (Taxi Cabs)
Example 10.
ABC Home Delivery Food Company Inc has "owner operators" purchase its refrigerated trucks, company uniforms and all frozen foods that these "owner operators" will then sell and deliver to customers. These "owner operators" have assigned regions and can only sell within their regions. Further, these "owner operators" have signed a contract indicating that they cannot sell products from competitors of ABC Home Delivery Food Company. These "owner operators" are generally considered employees of ABC Home Delivery Food Company Inc under the Workers' Compensation Law because ABC maintains control over the method and manner of these services.
Example 11.
ABC Nursing Home Inc pays no employees, but instead, borrows all of its employees from XYZ Hospital Inc. XYZ Hospital Inc pays for all the salaries and benefits for all of the employees who work for XYZ Hospital Inc. and also for those who work for ABC Nursing Home Inc. In this example, both XYZ Hospital Inc and ABC Nursing Home Inc must have a workers' compensation policy under their respective legal name and FEIN since both corporations are using people to provide their services. If there is common majority ownership between these two corporations, there can be one policy that lists both legal entities as insureds. Each legal entity would be able to obtain a Certificates of Insurance listing their respective legal name and FEIN.
Example 12.
A trucker drives a truck owned by ABC Trucking Company Inc. The bill of lading lists ABC Trucking Company Inc and the truck has Department of Transportation Numbers printed on it that belong to ABC Trucking Company Inc. The driver is generally considered an employee of ABC Trucking Company Inc.