There are several tests used to determine whether a worker is an independent contractor or an employee. The specific test used may depend on the state or federal laws in question, but some of the most commonly used tests include:
- Control Test: This test considers whether the employer has the right to control the manner and means in which the worker performs their job.
- Economic Realities Test: This test focuses on the economic relationship between the worker and the employer, including factors such as the worker's investment in their own equipment, their ability to earn a profit or suffer a loss, and the degree of independence the worker has in setting their own work schedule.
- ABC Test: This test has three prongs that must be met in order for a worker to be classified as an independent contractor: (A) the worker is free from control and direction in the performance of their work, both under contract and in fact; (B) the work performed is outside the usual course of the employer's business; and (C) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.
It's important to note that the tests used for independent contractor classification can be complex and may involve additional factors beyond those listed above. It's always best to consult with an employment lawyer or other qualified professional to ensure compliance with applicable laws and regulations.