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Independent Contractor Definition

Author: Bill Vernon Date: July 26, 2010

 

NFIB vigorously fought an effort to redefine independent contractors. This legislation would have eliminated the standard federal IRS 20-point test to determine whether a worker should be classified as an employee or an independent contractor in Rhode Island. The legislation would have created a new Rhode Island standard based on the interpretation of a particular worker’s compensation court judge applying a common law definition. The ambiguity of the law and inconsistency in enforcement would have made it virtually impossible for a small business owner to be certain about classification issues and a mistake can be very costly to the business owner. 

NFIB worked hard to prevent this bill from becoming law and small business owners in Rhode Island can now continue to use the historically standard and predictable IRS 20-point test when making worker classification determinations. 

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