Labor Department’s 6-Part Test for Classifying Employees, Independent Contractors

July 16, 2015

  • July 19, 2015 at 2:08 pm
    Sharon-Proudly Independent says:
    Like or Dislike:
    Thumb up 5
    Thumb down 1

    As a former “independent contractor” with American Family, I can speak first hand about the abuse of mis-classifying Agents as Independent Contractors rather than Employees. A current class action court case:1:13-cv-437 filed in Ohio (Walid Jammal v/s American Family Insurance) may turn the Captive Companies upside down and stop these Captives from abusing the people responsible for building the company without reaping any of the benefits, literally!

  • July 20, 2015 at 10:50 am
    Brian says:
    Like or Dislike:
    Thumb up 1
    Thumb down 1

    This can be quickly resolved by the 10-99 employee getting their own WC policy if they are a true independent contractor.

    As an agent looking to insure a company with this exposure, underwriters will let you know their tolerance on it case by case as there does not seem to be a standard fit for all scenarios.

  • July 20, 2015 at 3:31 pm
    DC says:
    Like or Dislike:
    Thumb up 1
    Thumb down 5

    If you are 1099’d you are an independent contractor.

    • July 20, 2015 at 4:13 pm
      Jaygent says:
      Like or Dislike:
      Thumb up 2
      Thumb down 0

      “the economic realities of the relationship, and not the label [or tax form] an employer gives it, are determinative.”

    • July 20, 2015 at 6:26 pm
      maxine says:
      Like or Dislike:
      Thumb up 4
      Thumb down 0

      DC-
      1099 doesn’t mean the person is actually an “Independent Contractor”.
      The courts have sided over and over again with an Independent 1099 contractor who got hurt or became ill while working for a company. The definition of independent contractor is sited on your STATE’s DOL websites as well as under the Federal DOL.
      NY has a long list of what is and isn’t an independent contractor so being paid on a 1099 doesn’t actually mean anything. In today’s market, the line is blurred so if an employer doesn’t cover a person under their W/C or Govt required Disability policy, the employer can still be liable for that 1099’s work related loss of earnings, medical expenses and more. I would say if the person carries their own Workers Comp and state mandated disability, signs a contract making their own hours with a specific task time frame of start to finish,specifically described, then the courts MIGHT favor the employer. More importantly in this CMS work world, I am curious to see how the courts will react when 1099 people claim they were not offered health coverage or other benefits because they could prove that although they got paid on a 1099, they were truly an employee.

  • July 27, 2015 at 10:27 am
    mateo says:
    Like or Dislike:
    Thumb up 2
    Thumb down 0

    …independent contractor is available to OTHER companies for a work involved relationship…. whenever that contractor works for that co..for that day… the co that employs that contractor for that day.. is liable for the w.c….

  • July 27, 2015 at 10:54 am
    David says:
    Like or Dislike:
    Thumb up 6
    Thumb down 1

    Sadly, most of these agents vote for the very people that allow this scam to perpetuate. We all know 1099 agents from captive carriers are slaves but they skirt around it.



Add a Comment

Your email address will not be published. Required fields are marked *

*