Owner-operators who are injured on the job are regularly denied worker's compensation benefits. However, a 2007 decision from the Illinois Supreme Court shows that even though owner-operators have signed independent contractor agreements, they may be considered employees under the Illinois Worker's Compensation Act and can receive benefits for work-related injuries.
In the trucking industry, one common type of employment arrangement is the owner-operator situation. When the truck driver is injured while working, the trucking company’s insurance company usually takes the position that the owner-operator is an independent contractor and therefore is not eligible to receive worker’s compensation benefits. However, a recent decision from the Illinois Supreme Court shows that owner-operators may in fact be eligible to receive worker’s compensation benefits when they are hurt on the job.
In an owner-operator situation, the truck driver owns his own truck. He enters into an agreement with the trucking company where he assumes the status of an independent contractor. He sets his own hours of work and hauls loads for the trucking company’s customers in return for a percentage of the load. He is responsible for the costs of operating his truck and its repairs, but keeps the profits after paying the costs of operation. The truck driver does not have withholding for taxes taken from his compensation and receives a 1099 form for taxes at the end of the year. The trucking company is responsible for making sure that the driver complies with all federal regulations.
When a owner-operator truck driver is hurt while working, the normal practice for the worker’s compensation insurance carrier for the trucking company is to deny the claim. The reasoning for this is that in their eyes, the owner-operator is considered an independent contractor, and only employees are eligible to receive worker’s compensation benefits. Unfortunately, many owner-operators accept that denial.
The 2007 decision of the Illinois Supreme Court is Roberson v. Industrial Commission demonstrates that with proper representation, an owner-operator can receive worker’s compensation benefits from his trucking company for on-the-job injuries.
There an owner-operator by the name of Roberson sustained a herniated disc in his lower back while ratcheting the chains on a load. He applied for worker’s compensation benefits and was denied. The Industrial Commission determined that he was an employee eligible for worker’s compensation benefits, and the trucking company appealed. The case eventually made its way to the Illinois Supreme Court which had to determine whether the owner-operator was an employee under the Worker’s Compensation Act.
The Illinois Supreme Court determined that the Commission’s finding that the owner-operator was an employee eligible for worker’s compensation benefits was not against the weight of the evidence. It began its analysis by noting that setting up a business relationship as independent contractor does not mean that the worker is not an employee for worker’s compensation purposes. It looked to the degree of control the employer had over the work being done and the relationship of the work being done to the employer’s business. It found that the trucking company had extensive control over the work being done and the work being done by the owner-operator was central to the business of the trucking company. Also, many other jurisdictions had found that owner-operators were employees for the purpose of worker’s compensation coverage. It also noted that the fact that the trucking company supplied the trailer to the owner-operator also tended to show that this was essentially an employer-employee relationship.
It noted that there had been two separate lines of cases in the Illinois Appellate Courts, one stating that owner-operators were not employees, the other stating that they were. It noted that it did not have to resolve the differences between the two lines of cases. In the cases where the owner-operator was found to not be an employee, the Commission had made a factual determination that the owner-operator was not an employee, while in the cases where the owner operator was found to be an employee, the Commission had made the exact opposite determination based on the evidence presented. Since the courts only review the decisions of the Commission to determine whether they are supported by the evidence, there was no need to resolve the differences between the two lines of cases from the Appellate Court. Since the factual determination of the Commission had been that Roberson was an employee under the Worker’s Compensation Act and that decision was supported by the evidence, it affirmed that Roberson, the owner-operator, was eligible for worker’s compensation benefits.
There are two main take-aways for owner-operators who suffer on the job injuries:
1. You should not accept the denial of worker’s compensation benefits from the trucking company at face value. The trucking company will almost certainly deny your worker’s compensation claim because of the independent contractor agreement, but this decision from the Illinois Supreme Court demonstrates that you may be eligible to receive worker’s compensation benefits for your on-the-job injury.
2. The quality of the case that you present at the Commission level is crucial to whether you receive worker’s compensation benefits. The question of whether you are an employee eligible for worker’s compensation benefits is a fact question which is decided by the Commission and the only review that the courts make is whether that decision is against the manifest weight of the evidence. This is a situation where the quality of the case you put on can make a big difference in the outcome. Hiring a skilled worker’s compensation lawyer who understands the trucking industry and the particular issues involved is the most important step you can take to protecting your rights.
