Gig Workers’ Compensation

The Gig Economy: Workers’ Comp & Los Angeles Independent Contractors

The gig economy has become an integral part of Los Angeles’s vibrant and diverse labor market. While exact numbers can be difficult to pin down due to the nature of gig work, a recent study by the UCLA Labor Center estimated that about 450,000 workers in Los Angeles County alone were employed in the gig economy. This represents a significant portion of the workforce, with gig workers playing crucial roles across various industries.

In Los Angeles, the gig economy thrives in sectors such as transportation, food delivery, entertainment, and tech. Ride-sharing and food delivery services have become particularly prominent – with companies like Uber, Lyft, DoorDash and InstaCart, employing tens of thousands of drivers across the city. The entertainment industry, a cornerstone of LA’s economy, also relies heavily on gig workers, from freelance writers and graphic designers to production assistants and background actors. Without these dedicated gig workers, many of Los Angeles’s essential services and iconic industries would grind to a halt.

However, despite their importance, gig workers often face significant challenges in obtaining benefits and legal protections traditionally afforded to employees. This disparity highlights the need for continued legal and policy discussions to ensure fair treatment for this vital segment of the workforce.

Traditionally, workers’ compensation benefits are reserved for employees, leaving independent contractors without coverage. However, the line between employee and independent contractor has blurred in recent years, particularly in the gig economy. This shift has prompted California lawmakers and courts to reassess how workers’ compensation laws apply to these non-traditional work arrangements.

Workers Comp Attorneys Navigate Changing Eligibility for Gig Workers

The rise of the gig economy has significantly impacted workers’ compensation law in California. For gig workers and independent contractors in the Los Angeles area, understanding their eligibility for workers’ compensation benefits has become increasingly complex. Recent legal developments have reshaped the landscape, affecting when and how gig workers can access benefits if they’re injured on the job.

One of the most significant changes in California workers’ compensation law came with the passage of Assembly Bill 5 (AB5) in 2019. This legislation implemented the “ABC test” to determine whether a worker should be classified as an employee or an independent contractor for the purposes of labor laws, including workers’ compensation.

Under the ABC test, a worker is presumed to be an employee unless the hiring entity can prove that:
A) The worker is free from control and direction in the performance of work.
B) The worker performs work outside the usual course of the hiring entity’s business.
C) The worker is customarily engaged in an independently established trade, occupation, or business.

This test made it more difficult for companies to classify workers as independent contractors, potentially expanding workers’ compensation eligibility to many gig workers who were previously excluded. For instance, ride-share drivers or food delivery workers might be reclassified as employees under this test, granting them access to workers’ compensation benefits.

Gig Workers & Eligibility in Workers’ Comp Cases

The implementation of AB5 led to a surge in workers’ compensation claims from gig workers who believed they should be reclassified as employees. However, the legal landscape shifted again with the passage of Proposition 22 in November 2020.

Proposition 22 created an exception to AB5 for app-based transportation and delivery drivers, allowing companies to continue classifying these workers as independent contractors. While this proposition didn’t directly address workers’ compensation, it did mandate that companies provide an alternative form of coverage: “occupational accident insurance”.

This insurance provides some benefits similar to workers’ compensation, including coverage for medical expenses and disability payments for injuries sustained while working. However, it’s important to note that this coverage is generally not as comprehensive as traditional workers’ compensation benefits – and not all gig workers’ employers may offer this.

Los Angeles Area Workers Comp Attorneys Assist with Complex Eligibility Issues

The interplay between AB5 and Proposition 22 has created a complex scenario for gig workers seeking compensation for work-related injuries. While app-based drivers are now covered under the occupational accident insurance mandated by Proposition 22, other types of gig workers may still be eligible for reclassification as employees under AB5, potentially granting them access to full workers’ compensation benefits.

For instance, a freelance graphic designer working primarily for one company might be reclassified as an employee under the ABC test, making them eligible for workers’ compensation. Conversely, a ride-share driver would likely remain an independent contractor under Proposition 22, with access to the mandated occupational accident insurance instead of traditional workers’ compensation.

This complexity underscores the importance of seeking a skilled workers compe attorney when navigating workers’ compensation claims in the gig economy. Experienced workers’ compensation attorneys can help determine a worker’s proper classification and the benefits they’re entitled to receive.

Gig Workers Need Expertise in Workers’ Compensation Law

The evolving nature of workers’ compensation eligibility for gig workers has led to numerous legal challenges. In August 2021, a California Superior Court judge ruled Proposition 22 unconstitutional, potentially reopening the door for app-based drivers to be classified as employees eligible for workers’ compensation. However, this ruling has been appealed, and Proposition 22 remains in effect while the legal process unfolds.

These ongoing legal battles highlight the fluid nature of workers’ compensation law as it applies to gig workers and independent contractors. Workers’ comp attorneys play a crucial role in helping injured workers navigate these changes and secure the benefits they’re entitled to receive.

For gig workers who suffer work-related injuries, the experienced Los Angeles area workers comp attorneys at Cantrell Green can assist in several ways. To begin with a skilled workers comp attorney can help your determine your proper worker classification under current law; i.e. are you and independent contractor OR can you be classified as an employee for purposes of collecting workers compensation?

If you are eligible to be classified as an employee, our workers comp attorneys can assess your eligibility for traditional workers’ compensation. If you are not, they can steer you in the direction of occupational accident insurance, if available.

The experienced workers comp attorneys at Cantrell Green in the Los Angeles area are also highly skilled at negotiating with insurance companies to ensure the maximum benefits for which you qualify. Our workers comp attorneys also have the skill to handle the extensive paperwork and document submission required when filing claims and appealing denials, as well as litigating workers compensation cases when necessary to protect workers’ rights.

As the gig economy continues to evolve, so too will the laws governing workers’ compensation for independent contractors. Staying informed about these changes is crucial for protecting one’s rights and ensuring access to appropriate benefits in case of work-related injuries. The skilled and caring workers comp attorneys at Cantrell Green in the Los Angeles area keep on top of all laws that affect gig workers benefits, so you don’t have to.

Gig Workers Compensation Attorneys | Los Angeles Area

If you’re a gig worker in the Los Angeles area who has suffered a work-related injury who meets the ABC Test, don’t let your employer “gaslight” you and deny benefits. You do not have to let the complexity of current laws deter you from seeking the workers compensation you may be entitled to receive. The skilled and experienced Los Angeles workers’ comp attorneys at Cantrell Green are well-versed in the latest legal developments affecting Los Angeles area gig workers’ eligibility for benefits.

With our decades of experience, high success rate, and compassionate approach, our Los Angeles area workers’ compensation attorneys can help you navigate the complexities of your case and fight for the workers compensation you deserve. Contact our attorneys today to learn more about your rights under California’s evolving workers’ compensation laws.

Los Angeles Gig Workers Compensation Attorneys: 800-964-8047