HI HCR151

Urges the Department of Labor and Industrial Relations (DLIR) to train auditors to require satisfaction of at least 15 of the 20 IRS factors when determining employment status if both parties contemplate an independent contractor relationship.

Alleges DLIR auditors have been applying the 20-factor test too strictly, classifying individuals as employees despite a majority of factors indicating independent contractor status.

References the case Envisions Entertainment v. DLIR as an example where DLIR incorrectly determined an employment relationship existed despite both parties' intent to have an independent contractor arrangement.

Identifies harm caused by erroneous DLIR determinations, including loss of general excise tax payments, potential loss of unemployment benefits, costly appeals, and damaged business relationships that discourage future contracting.

Directs that a certified copy of the resolution be transmitted to the Director of Labor and Industrial Relations.