Employee-employer relationships regarding workers' compensation are complicated by the IRS, industrial commissions, the courts and state statute. Each has its own definition or applies a different test to define "employee."

Prior articles discussed the difference between an independent contractor and an employee; the responsibility placed on upper tier contractors when lower tier contractors do not provide workers' compensation benefits for their direct employees; and the importance of contracts and contractual risk transfer in managing some of these relationships. This and the following article will re-cap some previously covered information and apply it to "employment situations" exempt from the requirement of workers' compensation protection.

Who Is An Employee and How Many Are Required?
Thirty-seven states and the District of Columbia require every employer with one employee or more to provide workers' compensation coverage. Only 13 states allow employers to forego coverage until they surpass a certain threshold number of employees; once eclipsed, it becomes necessary for employers in those states to provide protection. A few of the "threshold" states lower the threshold number if the employer falls within a contractor classification. Click to Read More