Hiring independent contractors or gig workers is becoming more and more popular. These workers have more freedom than a typical employer to choose hours and workload, but for employers, this is a great trade-off because they can save a lot of money. Employers in New York do not have to offer 1099 workers benefits, such as vacation time or health insurance. They also do not pay employment taxes on these workers. One major downside for the worker, though, is the lack of coverage under workers’ compensation, which an employer does not have to provide. However, if you are a 1099 worker, there might be a change to this soon.
Forbes explains that providing workers’ compensation for 1099 workers will protect you and the company you work for. This is because, without this insurance, you could sue your employer for any injury you sustain on the job. Workers’ compensation protects your employer by providing a no-fault system where you make a claim and have your expenses covered and the employer simply maintains the insurance by paying premiums.
With the rise of the 1099 worker, more companies are starting to see the wisdom in providing this coverage for them. Few insurers, though, offer such coverage. So, it is very difficult for your employer to offer it. However, there is a move towards getting this insurance more widely available. In the long run, offering workers’ compensation to contractors will help everyone and match the way the workforce is changing. This information is for education and is not legal advice.