Are Your Independent Contractors Classified Properly?

You could be liable!

The 2015 Nevada Legislative Session revised Independent Contractor guidelines for proper classification when it comes to determining compensation, wages, and hours of employees (Chapter 608 of NRS). Senate Bill 224 establishes a conclusive presumption that a person is an Independent Contractor, rather than an employee, if certain conditions are met, including:

  • the person has control and discretion over the means and manner of the performance of any work, and the result of the work is the primary element bargained for in a contract
  • the person has control over the time the work is performed (some exceptions apply)
  • the person is not required to work exclusively for one principal (some exceptions apply)

According to Tony Martin of Ogletree Deakins, Nevada is conducting random “alphabetical” audits which means any company, large or small, could be targeted. Additionally, Martin warns that the first litmus test for employers is whether the Independent Contractor holds a valid NV business license.

Keep in mind there are additional guidelines for properly classifying Independent Contractors such as ones issued by Nevada DETR, Nevada Workers Compensation Statues, the IRS, and the Department of Labor.

Uncertain about your Independent Contractors? Contact HRinDemand to schedule a consultation.

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