Independent Contractor

If a claimant is truly an independent contractor under the Colorado Workers’ Compensation Act, the claimant is not entitled to workers’ compensation benefits.  The Act defines an independent contractor as a person who owns the assets of a business, company, or service, who manages and controls such business, company or service, and who is the one who gains any profit or loss from that business, company or service.  Generally speaking, most workers are not independent contractors if an employer has substantial control over the quantity, quality, place, hours and procedures of the work; provides the worker with equipment, supplies, materials or personnel to do the work; and/or deducts taxes from the wages.  An Administrative Law Judge is often asked to decide whether the claim is an employee or independent contractor.  That Judge will look at all the facts of the case before reaching that decision.  Factors which will affect that Judge’s decision are how and when the claimant is paid, who supervised the work, who provided the equipment, materials and supplies, where the work was performed, who told the worker what hours to work, and what type of business, company or service is involved.  (Section 8-41-401(3), C.R.S.).