One of the toughest questions for our clients is often determining whether a worker should be classified as an employee or independent contractor for Workers Compensation Insurance. The short answer is that when in doubt, consult a labor attorney. But Best's Review magazine recently ran an article that at least helps with understanding the issues involved in this determination.

According to the article, the most important factor is whether the company has the right to control the manner and means by which the worker accomplishes the desired result. In other words, does the worker manage their own work process.

Secondary factors include:

• Whether the worker is engaged in a distinct occupation or an independently established business.
• Whether the worker or the company supplies the tools or instrumentalities used in the work.
• Method of payment, whether by time or by job.
• Whether the work is part of the regular business of the company.
• Whether the worker has a substantial investment in the business.
• Whether the worker hires employees to assist him or her.

 -Best's Review, April 2012

Want more information on Workers Compensation insurance? Hartford, one of our insurance partners, has released an interactive guide to help understand it.

Click here to check it out.