Worker's Comp for Barn Employees

[McGurk]

wsmoak,

This is why I said the OP cannot afford not to have WC - if their worker gets injured, either their medical insurance or the ER where they are treated will subrogate the claim and come after the OP. Eventually the OP will end up paying the claim and the fines for not having the WC. Just not worth it.

Not a lawyer, don’t play one on TV, but I did stay at a Holiday Inn Express, so here’s my understand of the employee vs. contractor issue. Braiders, free lance exercise riders, pony riders, free lance instructors and clipping professionals can be considered independent contractors, because they fit the definition of setting their own prices and hours and having their own tools. They are also paid per job, rather than an hourly rate.

Exercise riders and instructors are tricky - if I work for a bunch of different trainers, come in the morning and ride a couple of your tough ones when you need me, I’m an independent contractor. If I ride solely for you, ride in tack you provide and do things other than riding, I am an employee. Instructor - if I come onto your farm occasionally, pay a ring fee and teach a couple of your clients, I’m an independent contractor. If I’m based in your barn, teach lessons on your school horses, am listed on your marketed materials, and also feed and bring in when necessary, I’m an employee.

^^^^Not a substitute for actual professional or legal advice.

In the situation the OP describes, part time help who shows up every morning and feeds, mucks and grooms - that’s an employee. There’s no way to consider that person a contractor.

[wsmoak]

@McGurk

This is why I said the OP cannot afford not to have WC - if their worker gets injured, either their medical insurance or the ER where they are treated will subrogate the claim and come after the OP. Eventually the OP will end up paying the claim and the fines for not having the WC. Just not worth it.
[…]
In the situation the OP describes, part time help who shows up every morning and feeds, mucks and grooms - that’s an employee. There’s no way to consider that person a contractor.

I think we’re on the same side. I completely agree that barn workers are almost always really employees and their injuries ought to be covered. But what should happen isn’t always what does happen. Really it will come down to how much information the injured party volunteers on that subrogation form. Will they be honest? Or will they be too afraid of losing their job or making an enemy in the industry to say what really happened?

[oppsfelldown]

Look at it this way -if they are working in your barn with your horses and unless you have a signed contract stating what the work is, price, hours, materials provided AND a Certificate of Insurance naming your barn and you individually as an additional insured then 90% of the time a good lawyer will be able to swing it that they were an employee when injured even if you called them “independent contractor”.

[findthedistance]

@pandora36

I’m wondering how others handle their worker’s comp for stable employees? I am a trainer in California with one part-time employee. I had to go through State Fund to get worker’s comp for my employee and will pay approximately $3200 for the year for annual payroll of about $14000.

Would others mind sharing their costs and/or how you go about worker’s compensation? Is the amount I’m paying typical? I’ve been reading about how Professional Employer Organizations can sometimes help lower costs, but I’m not sure they even exist for equine-related businesses.

I’m in Maryland, and last year I paid 11% for worker’s comp through the state high-risk pool. I believe this year’s policy has a slightly better rate, but still north of 10%. The local Farm Family agent was able to quote worker’s comp for me (no one else will even touch it), but the state high-risk pool is the better rate.

I have looked at PEOs a little bit, mostly for other benefits they provide. It would lower our WC cost, but the numbers don’t work out in my situation. YMMV.

[Scribbler]

OK, a Canadian checking in here with a question.

From this thread it sounds like workers comp is purchased from and administered by private insurance companies. Is that right?

Just asking because in Canada workers comp is administered by the government. You can get additional coverage privately but the basics is mandatory for employers to pay into.

[McGurk]

Scribbler,

Someone will jump in and correct me if I am wrong, but I believe the answer is both.

There is a state worker’s comp commission in my state that handles the administrative side of things, but it the two cases where I had a WC injury, the disability checks came from a big private insurer - Hartford, Traveler’s, Aetna, et al…

In my current job at a mid-size company (1500+ employees in three states) I deal with both the state Worker’s Comp Commission for claims, appeals, final findings of disability award, etc., and our private insurer who actually pays the claims.

[TCA_Arabians]

Not sure if this has been mentioned. Once you designate a worker as an employee - you will also be paying social security, Medicare, etc. in addition to workers comp. If someone is injured and sues you - you may also be liable for back payments for those costs.

As mentioned, you can look at the IRS 20-pt test for determining employee vs independent contractor. You can also look at the IRS “letter rulings” for equine operations for an even better guide for making that determination. Here, in CA, the state uses the 20-pt test but weights several of the tests more than others. There are also recent court rulings that have expanded the type of workers that are to be considered employees. I’m not aware of such a decision relating to equine/ag workers.

[Palm_Beach]

@Scribbler

OK, a Canadian checking in here with a question.

From this thread it sounds like workers comp is purchased from and administered by private insurance companies. Is that right?

Just asking because in Canada workers comp is administered by the government. You can get additional coverage privately but the basics is mandatory for employers to pay into.

Yes, except for Ohio, Wyoming, Washington (state, not DC) and North Dakota. You must purchase wc insurance from the state fund in those states. All other states have admitted insurers who write policies.

Good post @McGurk .