An independent contractor working on your premises is not subject to the protection of the workers compensation laws. Because of this, if the worker is injured, he/she may be able to claim that the injury was caused by your negligence and if successful, that claim could create a substantial additional liabiltiy for the insurer. Whereas, were the worker an employee, he/she would pose no additional liability, because your workers compensation insurance would cover the worker, and California law would immunize you from any possible claim by the worker/employee of wrongful injury caused by you or other employees.

Therefore, an increase in insurance premium to cover this additional known peril is enforceable.

Note: California law is extremely hostile to workers being treated as independent contractors. If this worker decides to file a complaint with the Employment Development Department, you could be exposted to massive penalties, if it is later determined that the worker should have been treated as an employee. Moreover, the IRS could get involved, and that would cause even greater penalities to be levied.

If you would like to determine for yourself whether or not the worker is likely an employee or independent contractor, then you can use EDD form DE 38.

Hope this helps.

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Okay, thanks.

Bus. & Prof. Code 7125 applies to building contractors licensed by the Contractors State Licensing Board (CSLB). It has no application to any other type of independent contractor relationship.

Hope this helps.

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This problem is frequently encountered with janitorial maintenance, and there are no alternatives to avoid the liability risk.

The janitor may legitimately be an independent contractor, but unless the janitor carries his/her own workers comp insurance, then the business owner where the maintenance is taking place may be" on the hook" if the janitor is injured. And, if the janitor has any additional "helpers" (legally they would be the janitor's employees), then unless the janitor has workers comp insurance to cover all of his/her employees, then the business owner would be potentially liable for any injuries to any of the maintenance workers.

There is no way around the problem. Either the business' general business insurer must agree to cover the risk, or the janitor needs to provide evidence of workers comp coverage form him/herself and any other workers.

Obviously, the business owner can simply agree to take the risk, as can the janitor. But, if something goes wrong, then financial liability will spread out everywhere.

Hope this helps.

NOTICE: My goal here is to entertain while educating the public about the law. I hope my answer is useful and informative to you. During our conversation, the website may ask you to rate my answer. If you rate my answer lower than the middle rating, then the website retains your entire payment, and I receive nothing. It is entirely your choice as to how you rate my answer. However, because your payment to me is in the nature of a donation/gift, rather than as compensation for any services rendered, you are entitled to know how your rating affects the final distribution of your donation.

If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!