State lawmakers have approved a model law for the trucking and courier industries that sets guidelines for who is an independent contractor and who is an employee.
The National Conference of Insurance Legislators (NCOIL) adopted the measure at its spring meeting.
“We’ve heard that confusion over independent contractor and employee status is a problem in these unique industries and hope the model will eliminate uncertainty that causes major headaches for all. The model will help states ensure that businesses and state workers’ compensation systems aren’t unexpectedly burdened and that employees receive the benefits they deserve,” said Rep. George Keiser of North Dakota, who is NCOIL president.
Based on a 2009 Minnesota law, the bill includes a six point statutory “test” related to equipment ownership, operating responsibilities and costs, compensation, control over the work performed, and a certification statement in order to determine actual independent contractor status. Under the model, people who fail to meet all six standards are considered employees.
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