Legal Question in Insurance Law in California
I started a consulting practice LLC in 2014. I am the owner-operator of the company, work out of my home office in CA and I do not have any employees. On occasion, I will bring on specialists (e.g. graphic designers or data analysts) when my clients need them, and my clients pay them through me. I might start subcontracting out more work as my business grows.
Do I need to carry workers compensation insurance?
1 Answer from Attorneys
You need to be careful of the line between independent contractors and employees for a LOT of reasons, workers comp being just one of them. Pass-through billing for subcontracted work is perfectly fine and does not make your subcontractors your employees, just as a general contractor does not become the employer of the electrical and concrete subcontractors they hire. Keep your subcontractors truly on the subcontractor side of the subcontractor/employee line and you don't need workers comp.
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