Yet another contractor classification test you need to know

by Christian Schappel

Just when we all thought the argument over which test to use to determine if someone’s an independent contractor or not was settled by the DOL, two more tests (one old, one new) enter the fray. 
Earlier this summer, we reported that the DOL had published an Administrator’s Interpretation letter aimed at settling once and for all which test employers should use to distinguish who’s an independent contractor and who’s an employee. The DOL said it wanted employers to use its six-factor economic realities test.
Then, within a matter of weeks, the IRS posted a fact sheet on its website entitled Payments to Independent Contractors. Here’s our report. This action subtly reminded employers to use it’s existing three “Common Law Rules” to determine whether someone’s an independent contractor.

NLRB has its say, too

And now employers have a real mess on their hands, as the National Labor Relations Board (NLRB) has created its own test for determining who’s an independent contractor and who isn’t.
The test was revealed in a board-issued decision involving the nonprofit organization Sisters Camelot, in which a group of canvassers filed an unfair labor practice charge against the nonprofit.
In the case, the board was tasked with determining whether the canvassers were employees who could attempt to organize into a labor union.
In its decision that the canvassers were, in fact, employees, the NLRB unveiled an 11-factor test it will use to determine employee/contractor status in future cases.

Here are the 11 factors:

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