What Do You Think: Was Worker who Fell from Ladder Employee or Independent Contractor?

Phoenix, AZ (WorkersCompensation.com) – When a worker fell from a ladder while painting the house of the owner of a business he regularly performed work for, his injury raised questions about whether he was covered under workers’ compensation law.

The owner of a company that installed cable systems and telecommunications for hotels, motels, and other businesses hired an installer to work sporadically on a job-by-job basis. The installer also worked construction-related jobs for other employers.

The owner asked the installer to paint the exterior of his for $18 per hour, and they made a verbal agreement under which the installer would perform the work and could use tools or materials that the company had, which the installer did. He also used his own tools. The owner provided the paint for the job.

Other than an instruction to not start working until after 9 a.m. each day, the owner did not direct the painting process. The owner paid the installer using the company’s corporate checks but did not create an IRS W-4 tax form. The installer was free to look for other jobs during the painting job, and the owner wrote him a reference letter.

While working at the house-painting job, the installer fell from a ladder and broke both legs. He filed a workers’ compensation claim. An administrative law judge concluded that the claim was not covered, agreeing with the owner that the installer was an independent contract.

The installer appealed to court, claiming that he was a company employee.

Under Arizona workers’ compensation law, employers are not required to cover independent contractors who work for them

Was the installer an employee and thus entitled to workers’ compensation benefits?

Yes. The installer was using company equipment and following the owner’s directions in performing the work.

No. The installer was hired for a specific job and not as an at-will employee.

If you chose B, you agreed with the court in Guzman v. Industrial Commission of Arizona, No. 1 CA-IC 21-0029 (Ariz. Ct. App. 03/31/22, unpublished), which held that the installer was an independent contractor who was not entitled to workers’ compensation benefits. Although the worker was paid hourly, which suggested an employee relationship, the court highlighted the following factors in making its decision that the installer was not an employee:

• The installer was free to use company equipment but furnished his own if the company did not have what he needed.
• Control of the project was almost wholly left to the installer.
• Residential painting was not in the usual and regular course of the company’s business.

“Looking at the whole relationship, we agree with the ALJ’s determination that [the installer] was an independent contractor and not an employee,” the court wrote. “As such, [the installer] is not eligible for workers’ compensation.”

This feature does not provide legal advice.

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