Covid-19 Does Not Change Your Workers’ Compensation Requirements

March 16, 2020

As fears about Covid-19 sweep across the United States, most people are rightfully worried about their health. However, many people are now beginning to realize just how much coronavirus is changing the work landscape. Many employers are changing the way their employees work. However, our Los Angeles workers’ compensation defense attorneys at Sacks Law Group, APC wants to discuss whether or not you should make changes to the benefits you pay employees and how this could affect your workers’ compensation requirements.

Is Your Way Of Conducting Business Changing

Due to the outbreak of Covid-19 in the US, our lifestyles are changing. The NBA and NHL have postponed their seasons. Major gatherings of people, such as festivals and concerts, are being canceled. Even the way people work is changing.

Many employers are not allowing (or even mandating) that their employees work from home in an effort to limit the workers’ exposure to Covid-19. Of course, working from home has benefits and drawbacks, and many companies may be forever changed due to coronavirus.

However, if you are a business owner, you are probably making plenty of assessments. If your workers are not actually coming to work, is it necessary for you to continue to pay their workers’ compensation?

We want to say this clearly – keep paying your workers’ compensation premiums. Nearly every employee in California must be covered by workers’ compensation insurance. Them working from home while the country is in crisis does not change their classification.

What If You Reclassify Employees As Independent Contractors

You may be considering a change to your workers’ classifications, perhaps switching them over from employees to independent contractors. You need to be very careful about this because recent court cases and new state legislation significantly limits the definition of who can be classified as an independent contractor. If your workers were already fulfilling their role as official employees, you will likely have little excuse to classify them as independent contractors unless their entire job is changing.

In order to be considered an independent contractor, there are three conditions that must be met:

  • The worker must be free from the control and direction of the employer concerning how their work is completed.
  • The worker must perform tasks that are ordinarily outside the scope of your business.
  • The worker must be customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed by the hiring employer.

Let Us Get To Work On Your Case

We understand that the coronavirus is significantly disrupting business operations in California. If you are a business owner and are facing accusations of not properly insuring your workers, seek legal assistance immediately. Our qualified and experienced team understands the frustrations and difficulties of running a business in California, and we know the laws are continuously changing. Let our Los Angeles workers’ compensation defense attorneys look into your case today. You can contact Sacks Law Group, APC for a consultation of your case by clicking here or calling 310-216-7778.

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