Bill H.B. 247
This bill would establish a common definition of an independent contractor for workers’ compensation and unemployment compensation such that “employee” and “employment” does not include an independent contractor if it can be demonstrated that the independent contractor meets all of the following conditions:
(I) Maintains a separate business with a separate office, equipment, materials, or other facilities and has continuing recurring business liabilities or obligations.
(II) Holds or has applied for a Federal Employer Identification Number with the Internal Revenue Service or has filed business or self-employment income tax returns with the federal Internal Revenue Service based on that work or service in the previous year.
(III) Operates under a written contract that specifies that the independent contractor complies with all of the following:
(i) Will perform specific services or work for specific amounts of money, and the independent contractor controls the means of performing the services or work.
(ii) Incurs the main expenses related to the service or work that the independent contract or performs under contract.
(iii) Is responsible for the satisfactory completion of work or services that he or she contracts to perform and is liable for a failure to complete the work or service.
(iv) Receives compensation for work or service performed under a written contract on a commission or per-job competitive bid basis and not on any other basis.
(v) May realize a profit or suffer a loss under contracts to perform work or service.
(iv) Voluntarily elected the status of independent contractor. Coercing an individual to sign a statement of independent contract or status or to obtain other documents of such status is false representation and is subject to penalties.
