By Nigel Avilez on August 16th, 2018
If you’ve ever been through an employment audit by a state agency, you’ve no doubt come across the term “covered worker,” and you’ve probably been utterly confused by it. Below is a brief explanation of the term, and how it applies to employees and independent contractors.
As you may know, Washington State Employment Security Department (ESD) and Department of Labor & Industries (L&I) administer state-run insurance programs. ESD administers our state’s unemployment insurance program, which pays unemployment benefits to Washington workers when workers become unemployed. L&I administers our workers’ compensation program, which pays insurance benefits to workers who are injured on the job. So generally speaking, a “covered worker” is a worker who ESD and L&I believe is covered (i.e. entitled to benefits) under their respective insurance programs, and on whom employers should accordingly be reporting and paying quarterly insurance premiums to the state. Read more at Nigel’s blog.