HB541 Summary

• Requires employers and state agencies to use the 20-factor test from Internal Revenue Service Rev. Rul. 87-41 to determine if a worker is an employee for employment benefits, unemployment protections, and tax liability purposes.

• Establishes factors to assess employment status including: right to control instructions, required training, integration into business operations, personal performance requirements, and hiring/supervision of assistants.

• Considers work arrangement factors such as: continuing relationship, set work hours, full-time devotion requirement, work location control, order/sequence of services, and required reporting.

• Evaluates financial factors including: payment method, expense reimbursement, tool/material provision, worker investment in facilities, profit/loss potential, and independent business availability.

• Becomes effective on the first day of the third month following passage and approval by the Governor.