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Are subcontractors eligible for workers’ compensation?

With spring around the corner, Minnesota will see more construction sites popping up across the state, leading to more contractors starting their busy season. The more subcontractors on a construction site, the faster the project finishes.

But what happens if a subcontractor gets hurt on the job? Are they still eligible for compensation for medical treatment? Luckily, Minnesota has a simple system to determine if a contractor receives workers’ compensation.

The five-factor test

Before subcontractors receive any compensation, Minnesota verifies the status of their employment. To determine the status, the state uses a five-factor test to analyze if they are an independent contractor or an employee of another group:

  1. The right of discharge
  2. The right to control the means and manner of the performance
  3. The mode of payment
  4. The furnishing of tools and materials
  5. Control over the site where work is done

The significance of the test allows the state to see how much power an employer has over a worker and to see if the employer is required to provide benefits to injured contractors.

If the subcontractor is an independent contractor, they are personally liable to cover the expenses of any injuries they receive during the job. However, if the subcontractor is classified as an employee, they are eligible to receive benefits through their employer – whether it’s another contractor or small business.

Before any injuries, subcontractors should consult with a future employer or review their contracts about how to approach workers’ compensation. It will only prepare you in case the worst case scenario happens.

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 JN Law Office of James R. Nethercut, P.A.

4527 Allendale Dr.
White Bear Lake, MN 55127

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