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Classifying Workers as Employees or Independent Contractors Under Idaho Law: Part 2

To further elaborate on how to properly classify employees under Idaho Law, we bring you Part 2 of this series.

An employee may report an alleged misclassification to the IRS and Idaho Department of Labor, which then investigates the claim.  In determining whether the worker is an employee or an independent contractor, both the IRS and Idaho apply what Idaho refers to as “the right to control test.”  In essence, this looks to: (1) whether the employer has the right to control what the worker does and how the job is performed; (2) how payments are made (e.g., regular periodic payments suggest an employer-employee relationship); (3) whether the employer furnishes the equipment used to perform the job; and (4) whether the worker has the right to terminate the relationship without liability.  This test looks at the overall set of facts, but the Idaho Supreme Court has repeatedly held that where there is doubt, the resolution is to find that the worker is an employee.

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Categories: Business Law
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Classifying Workers as Employees vs. Independent Contractors Under Idaho Law: Part I

An issue that may be confound Idaho employers is determining whether a worker is an employee or an independent contractor.  For the reasons discussed below, some employers may be tempted to classify a worker as an independent contractor even though they meet the criteria for an employee, but the legal penalties for misclassification can be severe and should be avoided.

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