In the wake of the recent Amazon lawsuit, it is beneficial to review the Department of Labor has a Six Point Test used to determine if someone is a contract worker or an employee of the company.

3 IRS Standards for Independent Contractors

1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. Financial: Are the business aspects of the worker's job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3. Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

To follow the Amazon lawsuit, click here.