West Virginia: Clarifies Independent Contractor Status
APPLIES TO All Employers with WV Employees |
EFFECTIVE June 9, 2021 |
QUESTIONS? Contact HR On-Call |
SB 272 provides the definition of independent contractor for purposes of workers’ compensation, unemployment compensation benefits, Human Rights Act rights, and wage payment and collection laws. There must be a written agreement between the business and individual stating their intent to have an independent contractor relationship. The individual must also acknowledge in the writing that (1) they are providing services as an independent contractor; (2) they will not be treated as an employee; (3) they will not be provided with either workers’ compensation or unemployment benefits; (4) they are required to pay all applicable federal and state income taxes and that no tax withholdings from payments will be made by the business; and (5) they are responsible for the majority of the supplies and expenses incurred in connection with the contracted services unless the expenses are for non-local travel, the expenses are reimbursed under an express provision of the contract, or they are commonly reimbursed under industry practice.