Can Uber & Lyft Drivers Get Workers’ Comp in Georgia?

When someone hires an employee in Georgia, part of their responsibility is to follow labor laws. One of these laws is workers’ compensation.  An employer has liability if their employee gets injured while performing job duties.

However, some workers are not considered employees but independent contractors. Rideshare operators are an example. This raises questions like can Uber & Lyft drivers get workers’ compensation in Georgia?

According to our Atlanta workers’ compensation lawyers at John Foy & Associates, the answer to this question is no. Employers of independent contractors (ICs) do not have to provide workers’ compensation coverage. This can put the health of ICs at risk.

About Independent Contractors

The difference between independent contractors and employees is at the heart of this issue. An independent contractor has much more freedom with how they earn their living than an employee. Yet, in exchange for that freedom, they lose certain benefits like workers’ compensation.

Independent contractors also have to pay additional taxes that an employer must pay like payroll taxes. They have to buy insurance policies on the individual market and they don’t get benefits like PTO. If an IC isn’t working, they’re not earning money.

On the other hand, contractors are free to work for whomever they want for however much they can get. Everything is spelled out in a contract between the IC and the client, and an IC can have as many clients as they can handle.

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House Bill 389 and Rideshare Drivers

In 2022, Georgia passed House Bill 389. This bill set the employment status of many gig workers as independent contractors, including Uber and Lyft drivers. However, it did put some limitations on gig companies to give gig workers more of the freedoms that ICs have.

Car accident lawyers at John Foy & Associates understand that after setting this classification into law, Uber and Lyft drivers are not covered by workers’ compensation in Georgia. Given that rideshare drivers are constantly in danger of car crashes, rideshare workers are at significant risk of financial harm.

Some of the freedoms the bill gave workers include:

• Allowing rideshare workers to reject a job
• Not requiring rideshare workers to work at specific hours
• Allowing rideshare workers to work for multiple companies

Is Workers’ Compensation Necessary for Uber & Lyft Drivers?

To answer this, let’s look at the purpose of workers’ compensation. If you’re injured and it was someone else’s fault, you can take them to court and demand financial compensation to cover what happened to you. The courts would grind to a halt due to the sheer number of workplace accidents.

Workers’ compensation is a faster way for employees to get compensation. All they have to do is notify their employer of the injury, follow a doctor’s instructions, and submit a claim. If approved, they get payment for medical bills, some of their wages, and certain other damages.

Since rideshare drivers are in their vehicles during work, their auto insurance policies should cover any damages. Also, thanks to pressure from other states, rideshare companies carry large insurance policies for their workers if they’re actively working when they crash.

Rideshare Drivers Must Prove Fault After an Accident to Get Compensation

One major difference between workers’ compensation and Georgia auto insurance is our fault system. In a nutshell, if you get in an auto accident you must prove the other driver was at fault for the accident to collect compensation from their insurer.

With workers’ comp, you don’t have to do that. It is a no-fault system. You can collect money from your employer’s insurer if you can prove that your injury happened because of your job. You do not have to prove your employer was negligent.

Since rideshare workers have to prove negligence, they can have a much more difficult time getting compensation compared to someone who can workers’ compensation. If the rideshare worker is at fault, they may not be able to get compensation at all. 

Protect Yourself if You Drive for Uber or Lyft

Can Uber and Lyft drivers get workers’ compensation in Georgia? The answer is no. You’ll need to protect yourself if you work as a rideshare driver. Here are some tips to do that.

• Make sure your auto policy allows you to do ridesharing. If it doesn’t, your insurer may not cover the damages of anyone else hurt in the accident. You’ll have to pay for their damages if that happens.
• Consider raising the amount of auto insurance you have in case you are at fault so you don’t have to pay for someone else’s injuries.
• Understand your rideshare company’s insurance policy and how it covers you. For example, you may have less coverage when you’re on the app but not picking up a rider.
• Drive as safely as possible to prevent accidents.
• Keep your car in good condition by getting regular maintenance.
• Know your limits on how much you can drive before you start losing alertness.

If you do get in a wreck while on the clock while driving for a gig-based company, contact John Foy & Associates for help with your claim. Our Atlanta rideshare accident lawyers can help you with your insurance claims.