Ridesharing drivers as well as couriers and delivery drivers hurt on the job may need to explore the extent of legal liability under the law for their harm, despite any initial independent contractor label.
Driving your own vehicle while on the job involves all kinds of work. A lot of different types of cars and trucks are involved. The business varies. For instance, owner-operator truck drivers own or lease their rig and contract with carriers or brokers to transport goods. Then, there are specialty freight contractors who haul certain kinds of freight, like hazardous materials, with their unique vehicles designed for this kind of thing. They may contract by load or by route.
And of course, there are rideshare drivers working here in Illinois and Indiana for ridesharing companies like Uber or Lyft. There are also delivery drivers using their own cars or SUVs to pick up and deliver goods for companies like Amazon, Instacart, or DoorDash. Other drivers may use their own vehicles for things like courier services, chauffeur services, or private shuttle services (like moving people to and from O’Hare).
Form 1099-NECs: Independent Contractor Status of the Gig Driver According to the Company
All these worker-drivers should recognize the Internal Revenue Service Form 1099-NEC, which they receive each year from the companies that paid for their driving services.
W-2 versus 1099
Employees are sent Form W-2s, which will explain withholdings from their paychecks for things like Social Security, Medicare, income taxes, etc. They get routine paychecks on a set schedule.
Independent contractors receive Form 1099-NECs. These forms show the total earnings for that individual paid by that company. Independent contractors pay their own “self-employment tax,” which covers both the employer and employee portions of Social Security and Medicare taxes.
The independent contractor has the complicated task (headache) of tracking and reporting all their work-related expenses (think mileage, tolls, mobile phone expenses, etc.) on their Schedule C.
The choice of what form to send out by the company is usually decided by the company. And it is obviously advantageous for any company to consider someone an independent contractor than an employee for many reasons, not the least of which is that it is cheaper for their bottom line.
After a serious injury on the job, it is advantageous for the driver to consider whether or not the company was a client or if they were actually an employer under the law.
Regardless of the tax documentation, under federal and state law there are several tests that are applied in a specific case to determine if the worker actually was an “employee” for the company, even if the company labelled them an “independent contractor.”
Just because the company is adamant that the driver hurt in a work accident was not an employee is not the final word in this determination. There are federal and state laws that must be researched and applied to the particular circumstances surrounding the worker as well as the accident itself. Maybe the driver and the company assumed the 1099-NEC was correct, but legal analysis of the incident reveals that an employer-employee relationship had been created. See, Chicago Truck Crash Injury Claims: Drivers 1099 or W2?
Legal Tests to Decide Driver’s Worker Status
These legal tests (ABC; economic‑reality; right‑to‑control) consider things like control over the work; pricing; and performance standards in the worker’s circumstances. With enough evidence of control and authority, the contractor label cannot be applied to the worker-victim. See, Markovits, Eric. “Easy as ABC: Why the ABC Test Should Be Adopted as the Sole Test of Employee-Independent Contractor Status.” Cardozo L. Rev. De-Novo (2020): 224.
Companies will argue things like: (1) the driver is independent and sets their own hours (not controlled by the company); (2) the company is not in the business of transportation; (3) the company contract signed by the worker victim shifts any risk of injury; and/or (4) the accident happened outside the course and scope of work. For more, see Course and Scope of Employment: Industrial Accidents in Illinois and Indiana.
Huge courtroom fights take place on this issue. Drivers hurt on the job, with the help of legal advocates and industrial experts, may discover legal criteria establishes they are legally considered to be employed by the company regardless of the taxation treatment they may have received.
Uber has been especially noteworthy on these battlefronts at a global level. See, e.g., the fight in New Zealand discussed in “Uber loses Supreme Court appeal over drivers’ employment status,” written by Felix Walton and published in RNZ News on November 18, 2025.
Employee versus Independent Contractor Status for a Gig Driver Hurt in a Work Accident
Why is this important to the gig driver working for a rideshare app or for a delivery service? There are several considerations here, including:
1. Worker’s Compensation Benefits
If the worker-victim is found to be an employee at the time of the work accident, then they will be covered by the employer’s worker’s compensation insurance policy and able to file for medical and wage-loss benefits after the crash. Independent contractors do not get this coverage.
2. Employer Liability in the Crash
If the driver is alleged to have been negligent and responsible for the accident, being deemed an employee brings the company into potential legal responsibility for any claims pursued by the other accident victims. This is called the “vicarious liability” or “respondeat superior” legal doctrine.
3. Company Insurance Coverage
When the driver hurt in a work accident is held to be an employee, then worker may be able to file claims with the company’s liability and automotive insurance policies.
Also see: Who Has Liability for Accidents With Delivery Drivers for Amazon, FedEx, Wal-Mart, Target? Amazon Delivery Vehicle Accidents in Illinois: Chicagoland Amazon Truck Crashes; Hurt in Crash with Delivery Drivers for Amazon, FedEx, Wal-Mart, Target, UPS? and Chicago Uber and Lyft Ridesharing Accident Cases are Different from Other Illinois Motor Vehicle Accident Claims
Legal Liability of Third Parties for the Driver’s Injuries
The challenges made by the driver’s legal counsel to any company’s position that they are not responsible as an employer for any harm suffered in a work accident can be complicated, intense, and time-consuming. The greater the harm, the more intense the company may fight against taking responsibility as an employer. There may be considerations that the matter may set a precedent to be used by other drivers in the future, as well.
Nevertheless, each case is unique and deserves independent analysis and respect. Drivers hurt while on the job have a right to consult with legal advocates and confirm their particular legal standing at the time of the injury.
No driver should assume their legal status if there is any murkiness here. And no driver should blindly acquiesce to any advice given or positions taken by company counsel or insurance adjusters, no matter how forceful they may be.
Furthermore, any ridesharing driver or delivery driver (as well as any other driver using their own vehicle for work at the time of injury) is wise to consider that there may be legal liability involving various third parties under state and federal law. Product liability law may apply in the event of a car part failure or technology glitch; premises liability law may be involved where bad lighting or housekeeping failures contributed to the event; and of course, other drivers may be culpable for their own negligence.
For more, read:
- Are There Civil Claims for Damages Against Third-Parties for Your Work Accident?
- Workers’ Compensation and Third-Party Claims for On-the-Job Accidents
- What To Do If You’ve Been Injured In A Car Crash in Illinois
- Lyft or Uber Driver Car Crash: Liability in Rideshare Driver Accidents
- Legal Liability for Delivery Truck Accident Injuries: How Many Have Responsibility for the Crash?
Driving for a job using your own motor vehicle is more and more commonplace in today’s society. Companies find these gigs just as advantageous as the freedom-loving workers who enjoy the independence. However, their David vs. Goliath relationship does not mandate that the driver, hurt on the job, acquiesce to taking less than what the law provides to them in protection after being injured. Please be careful out there!
