Yet another contractor classification test you need to know

door to door canvasser with older womanFrom HRMorning, Christian Schappel discusses tests used to determine whether a worker is an employee or independent contractor.  Christian reminds readers of the Administrator’s Interpretation issued by the United States Department of Labor and the IRS test for classifying workers and then he discusses the recent NLRB decision that canvassers were employees.  Christian writes:

In the case, the board was tasked with determining whether the canvassers were employees who could attempt to organize into a labor union.

In its decision that the canvassers were, in fact, employees, the NLRB unveiled an 11-factor test it will use to determine employee/contractor status in future cases.

Here are the 11 factors:

  1. Extent of control by employer.
  2. Whether the individual is engaged in a distinct occupation or business.
  3. Whether the work is usually done under the direction of the employer or by a specialist without supervision.
  4. The skill required in the occupation.
  5. Whether the employer or individual supplies the instruments, tools and place of work.
  6. The length of time for which individual is employed.
  7. The method of payment.
  8. Whether the work is part of the regular business of the employer.
  9. Whether the parties believe they are creating an independent-contractor relationship.
  10. Whether the principal is or is not in the business.
  11. Whether the evidence shows the individual is rendering services as an independent business.

As you can imagine, the test isn’t wholly different from the two issued by the DOL and the IRS. In fact, the NLRB’s test is actually very similar to the IRS’s test in that both hinge on how much control the employer has over the work being performed by an individual.

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