Can Subcontractors Get Workers' Compensation in Nebraska?
If you are a subcontractor in Omaha or elsewhere in Nebraska, you may wonder if you are covered under workers’ compensation after an injury. The answer depends on how your working relationship is classified under Nebraska law. Always discuss your rights with our workers’ compensation attorney at Andres Law Offices in Omaha.
The General Rule: Independent Contractors Are Not Covered
Under the Nebraska Workers’ Compensation Act, benefits are available to employees (individuals who work directly for an employer). Independent contractors (individuals who work for themselves and are not employees), including many subcontractors with their own businesses, are generally not entitled to coverage. If you are a true independent contractor, your hiring party typically is not required to provide workers’ compensation if you are injured.
Classification Is Not Always Black and White
Nebraska law does not provide a strict definition of “independent contractor,” and courts do not simply take the label at face value. The Nebraska Supreme Court applies a 10-factor test to determine whether a worker is an independent contractor or an employee. Some of the factors considered include:
- Whether the worker can set their own hours
- If they supply their own tools
- Do they work for multiple clients
- Whether they operate an independent business with their own profit and loss statement
No single factor is decisive. Because of this, a subcontractor who was told they were an independent contractor, a person who does work for another business but is not considered a regular employee, may actually qualify as an employee under Nebraska law. This would make them eligible for workers’ compensation benefits, which are payments for work-related injuries or illnesses.
Statutory Employer Liability
Nebraska law also provides important protections through “statutory employer” liability under Neb. Rev. Stat. § 48-116. A “statutory employer” is a business, such as a general contractor, that may be held legally responsible for certain obligations of its subcontractors. If a general contractor hires a subcontractor to perform work and does not require that subcontractor to carry workers’ compensation insurance, the general contractor can become jointly and severally liable—meaning both parties are fully responsible—for workers’ compensation benefits owed to the subcontractor’s employees. This provision is designed to prevent companies from using subcontracting arrangements to avoid their obligations under Nebraska’s workers’ compensation system.
This means injured workers still have a path to recovery. They may recover even if their direct employer is uninsured or unresponsive, as long as they show the general contractor or upper-tier employer failed to require proper insurance.
Consult an Omaha Workers’ Compensation Lawyer After a Job Site Injury
If you are injured while working as a subcontractor in Nebraska, do not assume you have no options simply because you were classified as an independent contractor. Your actual working conditions and relationship with the hiring party may tell a different story. You may also have a third-party personal injury claim against another party on the site, separate from any workers’ compensation claim.
At Andres Law Offices in Omaha, we are dedicated to helping injured workers secure the compensation they deserve under Nebraska law. Don’t wait, call us today at 402-491-4003 or contact us online to schedule your consultation and take the first step toward protecting your rights.