Are Contractors Eligible for Workers’ Compensation in Orange County?

Independent contractors are not entitled to workers’ compensation benefits in California. The workers’ compensation system protects employees, not those who are truly self-employed or operating independent businesses. Contractors are generally responsible for their own insurance and must cover their own medical and wage losses if injured at work.

However, if you believe you’ve been wrongly classified, an Orange County independent contractor misclassification lawyer can help determine whether you should be treated as an employee and potentially qualify for benefits. Contact us for a free consultation today.

California’s ABC Test for Classification

Many businesses misclassify workers to save money on payroll taxes, overtime, and workers’ compensation premiums. If a worker has been incorrectly classified, they may still be eligible for benefits under California law. In 2019, Assembly Bill 5 (AB 5) changed how California determines whether someone is an employee or an independent contractor. The law created the ABC Test, which presumes that a worker is an employee unless the hiring entity proves all three of the following:

• A: The worker is free from the control and direction of the hiring entity in connection with the performance of the work.
• B: The worker performs work that is outside the usual course of the hiring entity’s business.
• C: The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

If the hiring entity fails to meet any one of these three conditions, the worker must be classified as an employee, making them eligible for workers’ compensation benefits.

Industries that Frequently Misclassify Orange County Employees

Certain industries in Orange County see high rates of contractor misclassification, including:

• Construction: Many workers labeled as contractors perform tasks directly controlled by general contractors, which often qualifies them as employees.
• Trucking and Delivery: Drivers classified as independent contractors may actually fall under employee status when they work under company direction and branding.
• Healthcare: Nurses, caregivers, and therapists sometimes work for staffing agencies that misclassify them to avoid payroll obligations.
• Gig Economy: Ride share and app-based delivery drivers remain at the center of ongoing legal disputes over contractor versus employee status.

What Benefits May Be Available if Misclassified in Orange County

If a contractor is reclassified as an employee, they may qualify for full California workers’ compensation benefits, including:

• Medical Care: Coverage for all reasonable and necessary treatment related to the work injury.
• Temporary Disability Benefits: Partial wage replacement while recovering from the injury.
• Permanent Disability Benefits: Compensation for lasting impairment.
• Supplemental Job Displacement Benefits: Vouchers for retraining or education if unable to return to the same type of work.
• Death Benefits: Payments to dependents if a worker dies due to a job-related injury.

These benefits can make a significant difference in protecting the financial stability of injured workers and their families.

How an Independent Contractor Misclassification Lawyer in Orange County Can Help

Determining whether a contractor is eligible for workers’ compensation requires detailed analysis of job duties, employer control, and the nature of the work. Employers and insurance companies often resist reclassification, leaving workers to fight for benefits while injured.

At Aegis Law Firm, our independent contractor misclassification attorney in Orange County can investigate the facts, apply the ABC Test, and present evidence that the worker qualifies as an employee. With skilled guidance, misclassified contractors stand a much stronger chance of securing the benefits they are entitled to.