HI HR98

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

Expresses concern that DLIR auditors have been overly strict in applying the 20-factor test, classifying individuals as employees despite a majority of factors indicating independent contractor status.

References the case of Envisions Entertainment v. DLIR as an example where DLIR incorrectly determined an employment relationship existed despite both parties intending an independent contractor arrangement.

Notes that erroneous DLIR determinations cause individuals to lose general excise tax payments and unemployment benefits while incurring significant attorney fees for appeals.

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