Nevada bill would define 'independent contractor,' exempt their workers from minimum wage laws

From Fox Business, reports legislation in Nevada that would provide a definition of an independent contractor. The report states:

A Nevada bill that would exempt businesses from paying minimum wage to independent contractors earned praise Monday from business owners who say they want the flexibility to hire people on contract.
However, critics said the bill would encourage employers to skimp on wages and benefits.
Members of the Senate Commerce and Labor Committee held a hearing for SB224, which aims to create a standard definition of independent contractor throughout Nevada law.
The measure also would bar some people from recovering unpaid wages under the minimum wage law.
Committee members acknowledged that bill language indemnifying employers from wage lawsuits was too broad and needed to be amended to cover only independent contractors.
The committee did not vote on the bill.

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Nevada Senate Bill 224 defines an independent contractor as follows:

“Sec. 2. “Independent contractor” means any person who renders service for a specified recompense or no recompense for a specified result, under the control of the person’s principal as to the result of the person’s work only and not as to the means by which such result is accomplished. Factors that must be considered to determine whether a person is an independent contractor are whether the person:
1. Is free to establish his or her days and hours of performance and is substantially free from the control and direction of the person’s principal.
2. Is customarily engaged in a trade or business of the work being performed which is established independently of the principal.
3. Is free to offer the same services to competitors of the principal or to customers of the competitors of the principal.
4. Receives compensation from the principal or from some other person or entity and is a tenant or customer of the principal.
5. Holds a current state business license issued by the Secretary of State pursuant to chapter 76 of NRS.
6. Intended to be an independent contractor rather than an employee of the principal at the time the person’s services were engaged.
7. Does not have contributions, premiums or taxes imposed pursuant to chapters 363A, 363B, 612 and 616A to 617, inclusive, of NRS withheld or paid on his or her behalf by the principal.
8. Leases space or equipment from the principal.”

The legislation defines an independent contractor in a familiar way – a worker who provides a service who is not under control as to the means by which the result is accomplished. The bill also provides factors that must be considered to make the determination.