Is Workers' Compensation Coverage Required?
A media sales representative is a contractor engaged in the sale or renewal of magazine subscriptions or the sale or renewal of magazine advertising space who receive no direction on how they perform services, are in control of their own work schedules, and who may refuse work assignments.
Workers' compensation coverage is not required for media sales representatives if:
- Substantially all compensation for services provided is directly related to sales or other productivity rather than number of hours worked;
- The sales representative is incorporated under New York State law and solely responsible for all workers' compensation premiums;
- Services are performed pursuant to a written contract between the media sales representative and the party for whom services are performed; and
- The written contract contains these provisions:
- The media sales representative is an independent contractor;
- Any fees will be commission based on the fixed rate outlined in the contract, there will be no compensation related to the number of hours worked, and the sales representative will not be treated as an employee for federal and state tax purposes;
- The media sales representative may work any hours, subject to limited restrictions;
- The media sales representative may work anywhere other than on the premises of the person for whom services are performed;
- The person for whom services are performed is not responsible for any reimbursement expenses other than those outlined in the written contract;
- The person for whom the services are performed and the media sales representative must comply with all articles of labor law that apply to their work, except article eighteen.
- The contract may be terminated by the media sales representative at any time with two weeks' notice given to the person for whom services are performed.
For a complete description of the written contract requirements, refer to WCL §2(4).