Independent Contractor Definition (House Bill 6153/Senate Bill 368)
NFIB vigorously fights efforts to redefine independent
contractors. The legislation would eliminate the long-established 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 create 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 make 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 works hard every year to prevent this bill or similar
bills from becoming law and small business owners in Rhode Island can continue
to use the historically standard and predictable IRS 20-point test when making
worker classification determinations.