The law permits home builders, remodelers and other businesses the use of independent contractors, provided such workers are not “employees” under existing tax, employee benefit, labor and employment laws.
Employer misclassification occurs when an employer incorrectly defines a worker as an independent contractor rather than an employee.
Responding to mounting evidence that many employers nationwide have classified some of their employees as independent contractors as a cost-savings measure, there has been increased federal and state focus on whether workers are properly designated as independent contractors or if they instead should be considered company employees.
Some states have focused their efforts on specific industries, most notably the construction industry.
This state-by-state guide discuss the laws that determine whether a worker is an independent contractor or employee, with an emphasis on the tests commonly used to determine worker status for purposes of unemployment insurance, workers’ compensation, and revenue, or taxation.
Select your state to learn more, or download the full guide to keep as a reference.
, District of Columbia
, New Hampshire
, New Mexico
, New York
, North Carolina
, North Dakota
, Rhode Island
, South Dakota
, West Virginia