Workers’ Compensation Partner Featured in ISBA Newsletter

Partner Gregory S. Keltner recently authored an article in the Illinois State Bar Association’s (ISBA) Section on Workers’ Compensation Law newsletter analyzing the “independent contractor/employer” issues that were central to a case he successfully tried before the Illinois Workers’ Compensation Commission. In his article Greg analyzed the distinction between employees and independent contractors in the trucking context. His insights that may assist employers, carriers, and risk professionals better understand how control and contractual structure impact compensability under Illinois law.

Greg’s article, “When ‘Owner-Operator’ Really Means ‘Independent Contractor’” examines Boyce v. Redbird Carriers, a case the Illinois Workers’ Compensation Commission recently affirmed that denied benefits to a truck driver who sustained injuries while hauling cargo, finding he was an independent contractor rather than an employee. The Commission applied the Illinois Supreme Court’s multi-factor test to evaluate whether an employment relationship existed under the Workers’ Compensation Act.

The Arbitrator and Commission focused on factors such as control over work methods, provision of equipment, method of payment and right to refuse work, concluding that the driver’s independent operation weighed against employee status. The decision also distinguished between W-2 drivers and 1099 owner-operators based on tax treatment, equipment ownership and the allocation of operational expenses.

Greg further explains that the ruling underscores the importance of clear independent contractor agreements and distinct operational practices for businesses that utilize owner-operators. He emphasizes that allocation of risk, financial responsibility and control over work performance remain central to independent contractor analyses under Illinois workers’ compensation law.

Greg shared a number of practice pointers as it relates to this particular ruling and, more specifically, to this case.

• Well-drafted independent contractor agreements matter, particularly where they clearly allocate control, expenses, and financial risk to the contractor.
• Ownership of equipment and responsibility for operating costs remain strong indicators of independent contractor status in trucking cases.
• Compliance with federal safety regulations standing alone does not establish employer control for workers’ compensation purposes.
• Carriers utilizing mixed work forces (W-2 drivers and 1099 owner operators) should maintain clear operational distinctions between the two classifications.

Greg focuses his law practice exclusively on Illinois workers’ compensation cases in central and southern Illinois and has been representing employers, insurance carriers and third party administrators for more than 30 years.