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Quick Tip: Do We Need Workers Compensation if We Have No Employees?

When it comes to community associations, there can be some confusion with workers compensation- what if the association has no one on their payroll, but hires someone to come in and do work, such as a contractor? Lisa explains.

When an employee is injured or becomes sick as a result of their job, regardless of who is at fault, workers compensation provides them with benefits. In exchange, the employee waives the right to sue their employer. When it comes to community associations, there can be some confusion- what if the association has no one on their payroll, but hires someone to come in and do work, such as a contractor?

In that instance, if the contractor does not maintain their own workers compensation policy, then the association should maintain one on their behalf. If the contractor were to be injured, they could then seek benefits from the association. In this instance not only would the association be held responsible for the injured persons benefits, but they could be penalized by the compensation board for not maintaining coverage. Just because someone isn’t on payroll, does not mean that they’re not an employee.

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