Fill and Sign the Determining Contractor Status Form

DETERMINING CONTRACTOR STATUS Independent contractor: Individuals who are independent contractors with no employees are not covered by workers' compensation insurance unless the entity contracting with the independent contractor elects to purchase insurance for that individual or the independent contractors choose to purchase coverage for themselves. The workers' compensation statute does not contain a definition of "independent contractor." When a question arises as to whether a particular relationship is that of employer- employee or that of two entities contracting independently, a five-factor test has developed through case law that generally allows an employer or employee to make some judgments concerning the appropriate characterization. This test involves analyzing the following five factors: 1. The right to control the means and manner of performance; 2. The mode of payment; 3. The furnishing of tools and materials; 4. Control over the premises where the work was done; and 5. The right of discharge. The degree of control one party has the right to exert over another has become the primary factor to consider. One party's right to control over another's job duties is an indication that the first is an employer. In order to analyze the control factor in a particular situation, it may be helpful to ask the following questions, bearing in mind that the factors that show evidence of control must be weighed against those that show an absence of control. The answers are not meant to compel a particular conclusion but should be used merely as a guide. Is the worker required to comply with instructions about when, where and how the work is to be done? The control factor tends to be present if the employer has the right to instruct.  Has the employer given the worker any specific training? If so, this may be an indication that the employer wants the services completed in a particular manner, giving rise to an employer-employee relationship.  Is there a requirement that the worker does the work personally and not hires a substitute without the permission of the employer? The element of control may then be present, indicating the employer is interested in both the methods and the results.  Does the worker have a continuing relationship with the employer or is the contact sporadic or infrequent? If the arrangement contemplates continuing or recurring work, this may indicate evidence of control. Does the worker devote full time to the employer or is the worker free to work for others during the same time period? If the worker is restricted from accepting other gainful employment, the control factor may be present.  Is the worker required to make reports to the employer? This indicates the worker must account for his or her actions and may be an element of control.  Does the employer pay for business and travel expenses? If so, it appears the employer may be concerned about controlling the worker's business activities and expenses.  Is the worker in a position to realize a profit or suffer a loss as a result of doing this job? If not, he tends to appear more like an employee than an independent contractor.  Is the worker the master of his or her own time? If the employer sets the hours and days of work, this may be an indication of control.