Am I required to carry workmans comp?

Question

I own a small trucking company (one truck) and my driver is paid with a 1099 as contract labor. He fell last week and hurt his foot. He went to the ER and they filled out paperwork for a workmans comp claim. Problem is... I dont have it. I just didn't think I was required to carry it because he was paid via 1099. is this true? if not, what will happen with his claim?

Answer 1

You are the employer therefore ultimately responsible. He can even sue you. This is my guess..

Answer 2

~~As long as he was paid under a 1099 and was legitimately a sub contractor you are not required to pay him W.C. He would need to pay his own medical bill, or if there was a hazard that caused the accident at the property he was hurt at he may be able to sue the property owners.~~

Answer 3

Not true,  you can't get out of paying workers comp, by paying your employee via 1099 and not withholding taxes.  

Here's a link, with a little test to see if your employee is an employee or not:

http://www.twc.state.tx.us/news/efte/app...

Now, the other little bit of the law is, if you hire a subcontractor, and the sub doesn't have workers comp for himself, YOU are required to provide him with the benefits!  And actually, you are required to cover lost wages and medical bills, REGARDLESS of whether or not you have a policy.

So, you are going to have to write the checks.  Talk to your insurer TODAY, because it's also possible that your state department of labor is going to shut your doors and fine you, until you get that coverage in place.  It won't cover this claim, though, you'll have to pay out of pocket.  Eventually, if this guy gets a lawyer, they'll both get paid by you, even if it ends up garnishing your wages and putting leins on your trucks.

Whoever told you if you 1099'd him you didn't need to buy workers comp, gave you crappy legal and insurance advice.  Maybe you can sue them for your damages.