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Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.
Today, many workers legally should be treated as employees, but companies treat them as independent contractors instead. This is sometimes called payroll fraud or independent contractor misclassification. Under the law, these workers should be employees.
An employee under Ohio Workers' Compensation law is a term of art and can include persons denominated by employers as independent contractors. Legitimately actual independent contractors are legally self-employed, and as such doesn't qualify for benefits.
Some states, including Texas, don't require employers to have workers' comp insurance at all. If you're a freelancer, an IC, or a sole proprietor, you're legally self-employed and not automatically covered by workers' comp. Workers not classified as employees receive a 1099 form at the end of the tax year.
Independent contractors still have a remedy if they're injured at work. As with any injured party, the independent contractor can file a personal injury lawsuit against the company or other third parties for negligence.