Chicago, IL asked in Employment Law for Illinois

Q: Workers' Compensation Insurance -deduction from paycheck.

I am working for some company as subcontractor, 1099 tax form. An employer collects from each of my paycheck 6.55% money, arguing that he needs to pay Worker Compensation Insurance. If I refuse, I lose my job. Is his action lawful?

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2 Lawyer Answers
Michael Bartolic
Michael Bartolic
Answered
  • Chicago, IL
  • Licensed in Illinois

A: I did a brief amount of research, and according to some consultants, yes, the action is likely lawful. If you do not carry your own Worker's Comp insurance, the employer may treat you as a direct employee for purposes of the Worker's Comp insurance.

Timothy J. Deffet
Timothy J. Deffet
Answered
  • Chicago, IL
  • Licensed in Illinois

A: Mr. Bartolic is an excellent attorney. However, I do not necessarily agree with this answer. In many instances an employer will try to designate an employee as an independent contractor and will misclassify them to avoid paying work comp insurance and to avoid work comp liability. This happens many times with truckers.

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