AR HB1850

Establishes the Empower Independent Contractors Act of 2019 requiring employers and agencies to use the IRS 20-factor test from Rev. Rul. 87-41 to determine whether workers are employees or independent contractors.

The 20-factor test evaluates control over instructions, training, integration into business operations, personal performance requirements, continuing relationships, set hours, full-time devotion, work location, order/sequence of services, reporting requirements, payment method, expense/tool provision, worker investment, profit/loss risk, multiple concurrent clients, public availability, discharge rights, and termination rights.

Amends workers' compensation law (Initiated Act 4 of 1948) to require the 20-factor test for determining employee status and clarifies that "employee" excludes individuals engaged in domestic service, agricultural service, temporary or seasonal employment, and certain non-profit organization employees.

Amends employment definitions in Title 11 to require the 20-factor test for determining employment status across multiple chapters governing workforce services, unemployment insurance, and workers' compensation.

Repeals the specific employment classifications for agent-drivers and traveling salespersons in the Department of Workforce Services Law, subjecting them instead to the 20-factor test.