Independent contractor status — Colorado Supreme Court sets forth applicable test

Colorado Supreme Court

(Photo credit: University of Denver)

From Lexology —

“Yesterday we posted an article describing the unsettled test for independent contractor status under Colorado’s unemployment insurance benefits laws after the Colorado Court of Appeals issued a new decision last week.  Now, that test has been settled as the Colorado Supreme Court issued its decision in the Softrock andWestern Logistics cases.

The Colorado Supreme Court ruled yesterday that determining whether a worker is “customarily engaged in an independent trade, occupation, profession, or business” in order to be deemed an “independent contractor” under Colorado’s unemployment insurance benefits laws requires an evaluation of the totality of the circumstances surrounding the relationship between the worker and the putative employer.  In two companion cases, the Court rejected a stringent, single-factor test for determining whether a worker is an employee or independent contractor for purposes of unemployment insurance tax liability and benefits.  Reversing decades of case law, the Court ruled that no single factor is dispositive of an employer-employee relationship.  Instead, courts and agencies may consider nine factors enumerated in a statute pertaining to independent contractor agreements, as well as “any other information relevant to the nature of the work and the relationship between the employer and the individual.”  ICAO v. Softrock Geological Servs., 2014 CO 30;Western Logistics, Inc. v. ICAO, 2014 CO 31. ”

Read the full story at Independent contractor status — Colorado Supreme Court sets forth applicable test – Lexology.

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