Tennessee Independent Contractors: What you need to know

Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. In some situations, federal law will govern, but the question is most often resolved by looking to state law, particularly in areas such as unemployment tax liability, workers' compensation, and state wage and hour requirements.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
Tennessee law imposes specific penalties for construction industry employers that fail to properly classify their workers. Employers in this industry may not misrepresent their payroll, number of employees, or their employees’ duties. For a violation of the law, a construction services provider may be fined up to $1,000 or 1.5 times the average yearly workers’ compensation premium for the provider, whichever is greater (TN Code Sec. 50-6-411).
When determining whether an individual is an employee or an independent contractor for purposes of workers' compensation coverage, the following factors are to be considered:
• The right to control the conduct of the work;
• The right of termination;
• The method of payment;
• The freedom to select and hire helpers;
• The furnishings of tools and equipment;
• Self-scheduling of working hours; and
• The freedom to offer services to other entities (TN Code Sec. 50-6-102).
Service performed by an individual is presumed to be covered by the unemployment compensation law whether or not the individual performing the services satisfies the common law definition of an employee unless and until it is proven that:
• The individual has been and will ...

>> Read more about Independent Contractors

More on this topic:

State Requirements

National | Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | District of Columbia | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming |

Tennessee Independent Contractors Resources

Independent Contractors Products

Employee vs. Independent Contractor Webinar Recording
BLR Webinar: "Employee vs. Independent Contractor: Where’s the Line? How to Make the Proper Call and Stay Out of Court""
Exempt or Nonexempt Webinar Recording
BLR Webinar: "Exempt or Nonexempt? Determining Employee Classification and Overtime Compensation""
Exempt vs. Nonexempt Webinar Recording
BLR Webinar: "Exempt vs. Nonexempt: How to Find and Fix Misclassification Mistakes""
Employee vs. Independent Contractor Webinar Recording
BLR Webinar: "Employee vs. Independent Contractor: Where’s the Line? How to Make the Proper Call""
Exemption Audits Webinar Recording
BLR Webinar: "Exemption Audits: Prepare Now for Stepped-Up DOL Enforcement""
Free Special Reports
Get Your FREE HR Management Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Critical HR Recordkeeping

Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions.
Download Now!

This special report will discuss how you can ensure your records are in good order, and establish a record-retention policy.

Topics covered:
1. Hiring Records
2. Employment Relationships
3. Termination Records
4. Litigation Issues
5. Electronic Information Issues
6. Tips for Better Recordkeeping
7. A List of Legal Requirements

Make sure you have the information you need to know to keep your records in order.