Amends TCA Title 50.

This bill requires the consideration of the 20-factor test in IRS Revenue Ruling 87-41 to determine whether an employer-employee relationship exists for purposes of the state's wage and hour laws, the Occupational Safety and Health Act of 1972, the Tennessee Employment Security Law, and the drug-free workplace laws, and making determinations of whether a person is an independent contractor or an employee under the Workers' Compensation Law. The factors in IRS Revenue Ruling 87-41 are as follows:<br /> <br /> (1) Instructions: If the person for whom the services are performed has the right to require compliance with instructions, this indicates employee status;<br /> (2) Training: Worker training indicates that the person for whom services are performed wants the services performed in a particular manner (which indicates employee status);<br /> (3) Integration: Integration of the worker's services into the business operations of the person for whom services are performed is an indication of employee status;<br /> (4) Services rendered personally: If the services are required to be performed personally, this is an indication that the person for whom services are performed is interested in the methods used to accomplish the work (which indicates employee status);<br /> (5) Hiring, supervision, and paying assistants: If the person for whom services are performed hires, supervises or pays assistants, this generally indicates employee status. However, if the worker hires and supervises others under a contract pursuant to which the worker agrees to provide material and labor and is only responsible for the result, this indicates independent contractor status;<br /> (6) Continuing relationship: A continuing relationship between the worker and the person for whom the services are performed indicates employee status;<br /> (7) Set hours of work: The establishment of set hours for the worker indicates employee status;<br /> (8) Full time required: If the worker must devote substantially full time to the business of the person for whom services are performed, this indicates employee status;<br /> (9) Doing work on employer's premises: If the work is performed on the premises of the person for whom the services are performed, this indicates employee status, especially if the work could be done elsewhere;<br /> (10) Order or sequence test: If a worker must perform services in the order or sequence set by the person for whom services are performed, that shows the worker is not free to follow his or her own pattern of work, and indicates employee status;<br /> (11) Oral or written reports: A requirement that the worker submit regular reports indicates employee status;<br /> (12) Payment by the hour, week, or month: Payment by the hour, week, or month generally points to employment status; payment by the job or a commission indicates independent contractor status;<br /> (13) Payment of business or traveling expenses: If the person for whom the services are performed pays expenses, this indicates employee status;<br /> (14) Furnishing tools and materials: The provision of significant tools and materials to the worker indicates employee status;<br /> (15) Significant investment: Investment in facilities used by the worker indicates independent contractor status;<br /> (16) Realization of profit or loss: A worker who can realize a profit or suffer a loss as a result of the services (in addition to profit or loss ordinarily realized by employees) is generally an independent contractor;<br /> (17) Working for more than one firm at a time: If a worker performs more than de minimis services for multiple firms at the same time, that generally indicates independent contractor status;<br /> (18) Making service available to the general public: If a worker makes his or her services available to the public on a regular and consistent basis, that indicates independent contractor status;<br /> (19) Right to discharge: The right to discharge a worker is a factor indicating that the worker is an employee; and<br /> (20) Right to terminate: If a worker has the right to terminate the relationship with the person for whom services are performed at any time he or she wishes without incurring liability, that indicates employee status.<br /> <br /> ON MARCH 28, 2019, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 539, AS AMENDED.<br /> <br /> AMENDMENT #1 retains the present law factors specified under the Workers' Compensation Law for determining whether a person is an employee or contractor for purposes of the Law, instead of requiring consideration of the IRS 20-factor test. This amendment delineates all 20 factors in each statute affected by this bill, instead of incorporating the factors by reference to the IRS ruling. <br /> <br />