A-B-Cs of Independent Contractors

AThe principal test of an Independent Contractor is: that the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

B – The “Independent Contractor” performs work that is outside the usual course of the hiring entity’s business

C – The “Independent contractor” is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

NOTE: Court of Appeals expanded ‘C’ to “requires more than mere capability to engage in an independent business.”  ‘C’ makes it critical for the hiring entity to analyze whether the “Independent Contractor” they are working with has an established business and independently engages in work with other businesses.

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