Delaware Workers Compensation

Effective October 1, 2008, workers compensation rates will be cut 11.75%. This cut is being ordered my Matt Denn, Insurance Commissioner.

Delaware Workers Compensation Insurance

1. Who needs Delaware Workman’s Compensation Insurance coverage?

Delaware Workers' Compensation insurance coverage is required for employers in Delaware. Employers with one or more employees are required to carry workers' compensation insurance for their employees. Employers may not charge an employee for any portion of the premium or expense of carrying Delaware workers' compensation insurance. Farm workers are exempt from the workers' compensation statute, however, we do not recommend opting out for employers because if some gets hurt you can be rest assured they will get an attorney and cause you problems.

Delaware Workman's Compensation insurance benefits have certain entitlement requirements which must be met in order to receive benefits. The requirements are established by law in Title 19, Delaware code and are administered by the Delaware Department of Labor, Division of Industrial Affairs, and the Delaware division of Workers ‘Compensation.

2. Do you have any special laws for the construction industry?

Since 2001, the Department of Labor has secured $7.8 billion for the retirement, health and benefit plans that cover 150 million Americans. The Department of Labor has reformed the financial reporting requirements for unions so that rank and file union members will have access to more accurate and complete information about how their dues money is spent. These reforms will help union members police their own unions and prevent problems before they start. Fulfilling its role in the Energy Employee Occupational Illness Compensation program, the Department has awarded more than $118,000 to Delawareans who developed cancer and other covered diseases while working on nuclear weapons and related projects for the United States. Payments have gone to former employees at the Department of Energy, its contractors or subcontractors, or to their survivors.

3. What do you consider a Sub-Contractor or Independent Contractor vs an employee?

It is always a difficult problem to determine who is an employee or contractor and preventing those hired as contractors from being employees, or vice versa. Some of the major factors to be considered are as follows:

1. The extent to which the worker has un reimbursed visit expenses. Independent contractors are more likely to have un reimbursed expenses than employees. Employers should not routinely approve reimbursement requests for business-related expenses, because this could be used as evidence of employee status.

2. The extent of the workers' investment. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. One of the most significant investments is office or work space. employers should not provide tools, equipment, or supplies to individuals who are hired as independent contractors.

3. The extent to which the worker makes services available to the relevant market. If the worker does the same work for other companies, it's a key indicator of independent contractor status.

4. An employee is generally paid by the hour, week, or month. Independent contractors are usually paid by the job.

5. An independent contractor usually makes a profit or loss on the job. Employees receive paychecks whether the company they work for makes money or not.

6. Does the employer provide employee-type benefits such as insurance, pension plans, vacations, or sick days? Independent contractors do not usually provide this type of benefit.

7. Workers who are hired on a permanent basis are usually considered employees. If a worker is hired with the expectation that the relationship will continue indefinitely, this shows generally an employer/employee relationship.

5. Can a sole proprietor or individual exempt themselves from Delaware Workers’ Compensation Insurance?

Sole proprietor or partner may elect coverage.

What is Employee Leasing or PEO?

A PEO is a Professional Employer Organization, also referred to as an employee leasing company. The PEO concept is simple - by allowing the PEO to establish a co-employment relationship with your workers, employer responsibilities can be shared between you and the PEO. You focus on growing your business and most importantly, increasing revenue. The PEO, on the other hand, takes care of the non-revenue producing areas of your business, including:

Payroll administration Working with a PEO allows employers to more easily administer a number of payroll functions, including processing via the Internet, phone and fax. PEOs also facilitate the filing of state and federal government taxes and accounting.

Risk Management. Perhaps the most valuable yet underutilized asset in the client business is the risk management coverage provided by PEOs in the areas of workers’ compensation and unemployment. Without such coverage, many companies are at risk for heavily reduced profits and even bankruptcy. By working with a PEO, however, companies are able to share the costs and liabilities incurred against the employer.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act, courtesy of Cornell University.
Click here for: USL&H & Jones Act Information
Defense Base Act Division of Longshore and Harbor Workers' Compensation

Delaware Workers Compensation

Delaware Workers Compensation Links

Delaware Workers Compensation Home Page
Delaware Workers Compensation Forms
Check to see if the business your dealing with has workers compensation coverage
Delaware Workers Compensation Rules
Quick Facts and Contact Information

Workers' Compensation Law (Title 19, Chapter 23, Delaware Code)