Classifying Workers as Employees or Independent Contractors

Why is there a lot of buzz recently about classifying workers as either employees or independent contractors?


The Department of Labor (DOL) just announced an arguably more restrictive six part test to evaluate whether a worker is an employee or independent contractor.

Employers should ensure that any independent contractor can pass this test.

The six factors are: 

(1) whether the work performed provides the worker with an opportunity to earn profits or suffer losses

(2) the relative investments made by the worker and the potential employer and whether those made by the worker are to grow and expand their own business

(3) the degree of permanence of the work relationship between the worker and the potential employer

(4) the nature and degree of control by the potential employer

(5) the extent to which the work performed is an integral part of the potential employer’s business

(6) whether the worker uses specialized skills and initiative to perform the work