SB345 Summary

• Amends Hawaii's employment security law (§383-6, HRS) to clarify independent contractor status by establishing a preponderance of factors test rather than strict common law criteria.

• Establishes 20 non-exhaustive guidelines for determining independent contractor status, including factors like control over work methods, flexibility of schedule, ability to serve multiple clients, and investment in own facilities.

• Defines "independent contractor" as an individual customarily engaged in an independently established trade who performs services independent of client connection, has no expectation of employee benefits, and maintains a current general excise tax license.

• Requires the Director of Labor and Industrial Relations to submit a report to the legislature by 20 days before the 2018 regular session on guidelines developed by the unemployment insurance coverage committee for auditor investigations.

• Requires annual reports to the legislature regarding the number of determinations by the department finding both independent contractor and covered employment status.