[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.kentuckycourage.com\/blog\/workers-compensation-for-1099-employees\/#BlogPosting","mainEntityOfPage":"https:\/\/www.kentuckycourage.com\/blog\/workers-compensation-for-1099-employees\/","headline":"Do 1099 Employees Get Workers\u2019 Compensation in Kentucky?","name":"Do 1099 Employees Get Workers\u2019 Compensation in Kentucky?","description":"Kentucky requires most employers to provide workers\u2019 compensation insurance coverage for their employees. But the requirement ends there. If you work for a company as an independent contractor, the company typically does not have a workers\u2019 compensation obligation to you. However, some businesses misclassify employees as 1099 workers to avoid paying them benefits. If you […]","datePublished":"2024-05-14","dateModified":"2025-04-11","author":{"@type":"Person","@id":"https:\/\/www.kentuckycourage.com\/blog\/author\/roycollins\/#Person","name":"Roy Collins","url":"https:\/\/www.kentuckycourage.com\/blog\/author\/roycollins\/","identifier":16,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/ddb9ea105c76cd1235700eb21c46cb033c49bc419ff8b2013850533e2470dca8?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/ddb9ea105c76cd1235700eb21c46cb033c49bc419ff8b2013850533e2470dca8?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Morgan, Collins, Yeast & Salyer","logo":{"@type":"ImageObject","@id":"https:\/\/www.kentuckycourage.com\/wp-content\/uploads\/2021\/11\/18-mcy-logo-blue.png","url":"https:\/\/www.kentuckycourage.com\/wp-content\/uploads\/2021\/11\/18-mcy-logo-blue.png","width":300,"height":300}},"image":{"@type":"ImageObject","@id":"https:\/\/www.kentuckycourage.com\/wp-content\/uploads\/2024\/05\/Workers-Compensation-for-1099-Employees.jpeg","url":"https:\/\/www.kentuckycourage.com\/wp-content\/uploads\/2024\/05\/Workers-Compensation-for-1099-Employees.jpeg","height":720,"width":1280},"url":"https:\/\/www.kentuckycourage.com\/blog\/workers-compensation-for-1099-employees\/","about":["Workers' Comp"],"wordCount":1257,"articleBody":"Kentucky requires most employers to provide workers\u2019 compensation insurance coverage for their employees. But the requirement ends there. If you work for a company as an independent contractor, the company typically does not have a workers\u2019 compensation obligation to you.However, some businesses misclassify employees as 1099 workers to avoid paying them benefits. If you are unsure about your eligibility for workers’ compensation benefits or believe that you are a Kentucky misclassified employee, you should contact a Kentucky workers\u2019 compensation lawyer.An experienced workers\u2019 compensation lawyer at Morgan, Collins, Yeast & Salyer can help you understand your rights and whether you are entitled to claim workers\u2019 compensation benefits.The General Rule: 1099 Contractors and Workers’ CompKentucky’s workers’ compensation laws require most companies to provide workers\u2019 comp to their employees. Workers\u2019 compensation coverage is no-fault insurance that provides benefits to full-time and part-time employees who are injured on the job or who become ill due to working conditions. Workers’ comp insurance benefits pay for all related medical bills and a portion of lost income while the injured or ill employee recovers.In exchange for these benefits, employees cannot sue employers for work-related injuries or illnesses. Still, some employers balk at approving workers\u2019 compensation claims for deserving employees.However, Kentucky law generally does not require employers to provide workers\u2019 compensation benefits to independent contractors, freelancers, and other self-employed workers\u2014sometimes called 1099 employees after the 1099-MISC tax form filed for these workers. These workers are not covered by the company\u2019s workers\u2019 compensation insurance policy but may buy insurance for themselves instead.Workers who are denied workers\u2019 comp benefits in Kentucky should contact our Kentucky workers\u2019 compensation attorneys to discuss their rights to claim compensation. Independent contractors injured at a job site should speak with our workplace injury attorneys. If you are not eligible for workers\u2019 compensation benefits, you may have the right to pursue a personal injury claim in some cases. A worker could have been misclassified as a 1099 independent contractor when they were, in fact, an employee.The Big Exception: MisclassificationSome employers incorrectly classify their employees as independent contractors to avoid paying for workers\u2019 compensation coverage. A newly adopted test should make it more challenging to get away with if injured workers know to apply for workers\u2019 comp and to appeal a denied claim.In 2023, the Kentucky Supreme Court established a six-point economic realities test to determine whether a worker should be considered an employee or an independent contractor.The court ruling arose from a case known as Oufafa v. Taxi, LLC, in which a taxi driver who had been shot by a customer and paralyzed was denied workers\u2019 compensation. The company he worked for leased vehicles to drivers that could only be used for company rides and identified its drivers as independent contractors.The taxi company said that the taxi driver was an independent contractor and was not eligible for workers\u2019 comp coverage. The taxi driver\u2019s appeal to the Kentucky Department of Workers\u2019 Claims and the appellate court failed, with each applying a different standard but determining that the driver was an independent contractor.The Supreme Court\u2019s economic realities test was adopted in Mouanda v. Jani-King International, a wage and hour case. The Court cited a desire for consistency in classifying workers across different statutory employment protections.The economic realities test consists of the following six factors:The permanency of the relationship between the parties,The degree of skill required for rendering the serviceThe worker\u2019s investment in equipment or materials for the taskThe worker\u2019s opportunity for profit or loss, depending upon their skillThe degree of the alleged employer\u2019s right to control how the work is performedWhether the service rendered is an integral part of the alleged employer\u2019s businessThe Court stated that the central question to the economic realities test is the worker\u2019s economic dependence upon the business for which he is laboring. That issue had not been specifically captured under the Department of Workers\u2019 Claims\u2019 in-depth analysis of the taxi driver\u2019s case nor under prior case law.The KY Education and Labor Cabinet, which oversees the workers\u2019 compensation system in the state, says, \u201cIf analysis of these factors reveals the employee is economically dependent upon the alleged employer\u2019s business, he or she is an employee and not an independent contractor.\u201dWhat Can 1099 Contractors Do for Protection?If you have been denied workers\u2019 compensation benefits you believe you should receive, the most important step to protect your rights is to contact a knowledgeable attorney. Our law firm urges you to contact our KY workers\u2019 compensation lawyers immediately.We\u2019ll review your claim free of charge and press an appeal on your behalf if you have a case. We can also help you file your initial claim so you may focus on recovering from your injury.If you are truly a 1099 independent contractor, you can purchase health and disability insurance for yourself.An independent contractor injured in an accident caused by someone else’s negligence might be entitled to file a personal injury claim to seek compensation for medical expenses and lost wages. If you are injured in an accident that occurred because of a business\u2019s negligence or recklessness, you may seek compensation for your losses. That could include compensation for your pain and suffering, which workers\u2019 compensation does not pay.The personal injury attorneys at Morgan, Collins, Yeast & Salyer are prepared to demand the total compensation you deserve for your injuries and lossesFrequently Asked Questions About 1099 EmployeesCan I sue my employer in Kentucky if I’m a 1099 contractor and get hurt?If you are a 1099 contractor and are not covered by the company\u2019s workers\u2019 compensation plan, you may be entitled to pursue a lawsuit against the employer.Is it illegal to classify employees as 1099 in Kentucky?A 1099-MISC classification refers to the type of tax form that independent contractors and freelance workers receive listing their wages. It’s a valid classification for certain types of workers. But misclassifying workers as independent contractors is illegal when it’s done by a business to avoid paying workers\u2019 compensation insurance, unemployment coverage, Social Security taxes, Medicare taxes, or other employer-paid taxes and withholdings.What happens if I don’t have workers’ compensation in Kentucky?You may pursue litigation against a negligent party that injured you if you are not covered by workers\u2019 compensation in Kentucky.How Do I Report Worker Misclassification in Kentucky?Business owners that misclassify employees as independent contractors may suffer such consequences as:Tax penalties plus interestLabor law and safety violation chargesPayment of back unemployment insurance premiumsReport employee misclassification or fraud:Online hereBy email at desauditors@ky.govBy U.S. mail with this form completed at Office of Unemployment Insurance, Tax Audit Branch, P.O. Box 948, Frankfort, KY 40601By phone at 502-564-6838How a Kentucky Workers\u2019 Compensation Lawyer Can HelpWorkers\u2019 compensation law is complex, and most workers know little about the insurance program until they have been injured on the job or developed an occupational illness and need benefits. That gives an unscrupulous employer and their workers\u2019 comp insurers an advantage. If you have been injured on the job and are being told you don\u2019t qualify for workers\u2019 compensation, you should contact our workers\u2019 comp attorneys immediately.The Kentucky workers\u2019 compensation lawyers of Morgan, Collins, Yeast & Salyer stand ready to pursue the full workers\u2019 comp benefits you deserve.Contact us today to start with a free, no-obligation initial consultation."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.kentuckycourage.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Do 1099 Employees Get Workers\u2019 Compensation in Kentucky?","item":"https:\/\/www.kentuckycourage.com\/blog\/workers-compensation-for-1099-employees\/#breadcrumbitem"}]}]