independent contractor

An independent contractor is an individual or company that has signed an agreement with another party to perform some job or function on behalf of that party without the direction or oversight of the party.

On This Page

Additional Information

As respects workers compensation, many states have established criteria that determine whether an individual is functioning as an independent contractor or employee. A worker classified as an independent contractor and not an employee is ineligible to receive benefits under the workers compensation policy of the other party. In spite of the rules established, the delineation of an independent contractor remains in many jurisdictions as a legal ambiguity.