# Independent Contractor Exclusion

_Glossary_

Canonical: https://www.claimspages.com/learn/glossary/independent-contractor-exclusion/

Workers compensation typically does not cover true independent contractors; misclassification creates coverage and penalty exposure.

States use different tests (economic realities, ABC test) to distinguish employees from contractors. Misclassified workers denied WC may sue; employers face fines and back premiums.



A gig driver classified as contractor suffers injury; state finds employee relationship — employer owes WC benefits retroactively.