Delaware Code § 19-2311

Contractors, subcontractors, independent contractors and lessees of motor vehicles transporting
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passengers for hire as employers.
(a) Notwithstanding any other provisions in this chapter, including but not limited to the definitions of "employer" and "employee"
in § 2301 of this title, the following provisions shall apply to persons who are licensed as contractors under Chapter 25 of Title 30 or
persons shown to be conducting business in a manner in which they should be so licensed:
(1) Any contractor or subcontractor shall be deemed to be an employer. Any and all rights of compensation of employees of
contractors or subcontractors shall be against the employer contractor or subcontractor and not against any other employer.
(2) For purposes of this section, "independent contractor" shall mean any person not excluded from mandatory coverage under
provisions of this chapter, who performs work or provides services for a contractor, subcontractor or other "contracting entity" in return
for remuneration and/or other valuable considerations but who is not an employee of the contractor subcontractor or other "contracting
entity" or any other person or entity with respect to the work performed or the services provided.
(3) For purposes of the section, "contracting entity" shall mean any commercial entity that obtains work or services from a person
not excluded from mandatory coverage under provisions of this chapter and who is not an employee of the contracting entity or any
other commercial entity with respect to the work performed or services provided.
(4) All independent contractors governed by this subsection shall be covered under this chapter. Independent contractors shall have
an option to purchase coverage to satisfy this requirement, or alternatively shall be insured by the general contractor, subcontractor or
other contracting entity for which they perform work or provide services. Actual remuneration of the independent contractor will be
used to determine premium subject to the executive officer minimum and maximum payrolls approved by the Department of Insurance.
Executive officers who are stockholders of a corporation and individuals who are members of a limited liability company may elect
to be exempted from the above and this chapter, pursuant to and by complying with § 2308(a) of this title. However, for purposes of
this subsection the exemption provided in § 2308(a) of this title for executive officers who are stockholders of a corporation shall be
limited to no more than 4 executive officers. Partners and sole proprietors, when working in an independent contractor role, shall be
subject to the requirements of this subsection and may not rely upon § 2308(b) and (c) of this title. This subsection applies to insurance
policies issued or renewed on or after July 17, 2007.
(5) Any contracting entity shall obtain from an independent contractor or subcontractor and shall retain for 3 years from the date of
the contract the following: a notice of exemption of executive officers or limited liability company members and/or a certification of
insurance in force under this chapter. If the contracting entity shall fail to do so, the contracting entity shall not be deemed the employer

of any independent contractor or subcontractor or their employees but shall be deemed to insure any workers' compensation claims
arising under this chapter.
(b) In all other types of commerce, the determination of employee or independent contractor status shall remain as before the adoption
of subsection (a) of this section above and § 2308 of this title and the other provisions defining employees and persons not covered by
this chapter shall apply.
(1) No contractor or subcontractor shall receive compensation under this chapter, but shall be deemed to be an employer and all
rights of compensation of the employees of any such contractor or subcontractor shall be against their employer and not against any
other employer.
(2) Lessees transporting passengers for hire in motor vehicles leased pursuant to written leases shall not receive compensation under
this chapter, but shall be deemed to be employers.
(Code 1915, § 3193ii; 29 Del. Laws, c. 233; Code 1935, § 6105; 19 Del. C. 1953, § 2311; 63 Del. Laws, c. 334, §§ 1, 2; 76 Del.
Laws, c. 1, § 6; 76 Del. Laws, c. 33, §§ 2, 3.)

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