Issue link: http://www.e-digitaleditions.com/i/83215
IV. Employment Issues A. 1. 2. 3. 4. The Act only provides coverage for employees, not independent contractors. In considering whether an employment relationship exists, the Commission will consider: The selection and engagement of the employee; The payment of wages; The power of dismissal; and Control over the employee's action. The most important element is the power of control and, in almost every case, the decision as to whether the worker is an employee or independent contractor will turn on whether the purported employer controlled how the work was performed. B. Statutory Employers The Act has a special provision to hold a "statutory employer" responsible if an actual employer has no insurance or is unable to pay for awarded benefits. This concept is most often encountered in a construction contract scenario, but can arise in almost any business setting. Under the Act, if a business owner contracts with another to perform work which is part of his trade, business, or occupation, the owner can be liable for an injury sustained by an employee of the subcontractor as if the worker had been a direct employee. Likewise, if any contractor enters into a contract with another to perform work that is part of the general contract, that general contractor can be liable for injuries sustained by workers of the subcontractor as if the worker had been a direct employee. Analysis of issues pertaining to statutory employers can be very complex. If you think you may have an issue related to this Section of the Act, we encourage you to consult counsel for formulation of your defenses and/or decisions about accepting or denying the claim.