Workers Comp for Independent Contractors in Minnesota Dental Practices
Periodically during the course of meeting with various dental practices, the question comes up, do I need to cover my independent contractors under my workers compensation policy? By Minnesota Law, all employees must be covered under workers compensation but where does the independent contractor fit in? The Minnesota Workers’ Compensation Statute does not have a definition of an “independent contractor”, but it does assist in determining the employer/employee relationship. Reflected below are the five factors to assist in determining that relationship:
- The right to control the means and manner of performance;
- The mode of payment;
- The furnishing of tools and materials;
- Control over the premises where the work was done; and
- The right of discharge.
If the independent contractor does not fit within the five factor assessment, they must purchase their own workers compensation coverage to protect themselves in an event of a work-related injury. The independent contractor must provide a copy of their certificate of coverage to the dentist so the practice can reflect it in their annual workers compensation payroll audit. If the certificate is not provided, their payroll will be added at time of audit. For more information, please contact Shelley Stark at Dyste Williams or go to www.dli.mn.gov/WC/IndpCont.asp.