Independent contractors’ “benefits” in California
| Benefit | Eligibility |
|---|---|
| Workers’ compensation | Independent contractors do not qualify for workers’ compensation. |
| Unemployment insurance | Independent contractors are not eligible for unemployment insurance and thus do not get unemployment benefits when they are not working. |
| Disability insurance | Independent contractors can apply for Disability Insurance Elective Coverage (DIEC), but coverage is not guaranteed. |
| Social Security and Medicare | Payroll taxes are not withheld in payments independent contractors receive. As a result, independent contractors must pay the Self-Employment Tax to cover Social Security and Medicare. |
Source: EPI analysis of California labor laws