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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.


Categories: Business Law
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Idaho Small Business Development: Steps to Hiring Employees and/or Independent Contractors

Many Idaho entrepreneurs starting their own business are faced with uncertainty about what is legally required when they are ready to hire their first worker, and they are concerned with the risks that come with being an employer. Following these steps will help you get on the right track, but a skilled lawyer will be able to walk you through the process and ensure that as your business grows, you are following the legal requirements for hiring and retaining employees.


Categories: Business Law
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