Nevada Establishes Conclusive Presumption for Independent Contractor Status

Nevada state mapFrom Littler, Rick D. Rosekelley and Kathryn B. Blakey discuss the new statute in Nevada that creates a conclusive presumption that a worker is an independent contractor.  Rick and Kathryn write:

“The New Test in Nevada

Effective June 2, 2015, S.B. 224 provides that a person is conclusively presumed to be an independent contractor for purposes of NRS Chapter 608 if:

a.  The person is not a foreign national who is legally present in the United States;

b.  The person is required by contract with the principal to hold any necessary state or local business license and to maintain any necessary occupational license, insurance or bonding; and

c.  The person meets 3 or more of the following criteria:

1. The person has control and discretion over the means and manner of the performance of any work and the result of the work.

2.  The person has control over the time the work is performed.

3.  The person, with limited exceptions, is not required to work exclusively for the principal.

4.  The person is free to hire employees to assist with the work.

5.  The person contributes a substantial investment of capital in the business of the person.

Moreover, even if a person is not conclusively presumed to be an independent contractor for failure to satisfy three or more of the criteria set forth in section (c) above, that does not automatically create a presumption that the person is an employee….”

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