Workers Compensation - definition of an employee

Many times small business owners try to parse what is or isn't an employee when faced with the prospect of having to obtain workers compensation coverage. A commonly used tactic by those trying to wiggle out of having to purchase workers compensation is coming up with inventive labels for their employees in order to dodge the workers compensation "bullet". Oftentimes employees are labeled subcontractors, or are made officers of the employers corporation. The problem is the definition of who is an employee often bumps up against the employers fondest wishes. For instance, does the person work at a time and place directed by the employer? Are they provided with the tools in which to perform their job function by the employer? Does the "employee" work solely for the employer? Can the "employee" be considered an independent contractor? It is important to know and understand the distinction ahead of time before considering ways of avoiding workers compensation and it's costs.

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