HI HB2602

Amends Hawaii's employment security law (Section 383-6, HRS) to replace the previous three-part test for independent contractor status with three categories and twelve factors that the Department of Labor and Industrial Relations must apply using a preponderance standard.

Establishes behavioral control factors including the type and degree of instructions and training provided by the business to the individual.

Establishes type of relationship factors including written contracts, employee benefits provision, permanency of relationship, and whether services are key to the business.

Establishes financial control factors including valid general excise tax license, unreimbursed business expenses, investment in facilities/tools, market availability of services, payment method, and profit/loss potential.

Requires the Department of Labor and Industrial Relations to submit reports to the legislature regarding guidelines for applying the new test and regarding determinations finding both independent contractor and covered employment status.