Employee or Independent Contractor?

New rules needed for independent contractors 

Heidi Scheuermann

 

From the Stowe Reporter, Vermont Republican State Representative Heidi Scheuermann proposes a new definition for independent contractors.  Heidi writes:

Specifically, my proposal would explicitly define an independent contractor by requiring that six criteria be met:

• The individual has the essential right to control the means and progress of the work except for the final results.

• The individual is customarily engaged in an independently established trade, occupation, profession, or business.

• The individual has a substantive investment in the facilities, tools, instruments, materials and knowledge used by him or her to complete the work.

• The individual has the opportunity for profit and loss as a result of the services being performed for the employer.

• The individual hires and pays his or her employees, if any, and supervises the details of the employees’ work.

• The individual makes his or her services available to the general public and is able to accept work for entities other than the employer, whether or not he or she chooses to do so.

In addition, at least two of the following five criteria have to be met as well:

The individual is responsible for satisfactory completion of the work and may be held contractually responsible for failure to complete the work.

The parties have a written contract that defines the relationship and gives the individual contractual rights if the employer terminates the contract before the work is completed.

Payment to the individual is based on factors directly related to the work performed, and not solely on the amount of time expended by him or her.

The work is outside the usual course of business for which the service is performed.

The individual has elected to file taxes as an independent contractor with the federal Internal Revenue Service.

Read the full story at New rules needed for independent contractors 

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