Alaska Independent Contractors laws & HR compliance analysis

Alaska 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
In determining whether individuals in Alaska are employees or independent contractors under wage and hour law, employers must use the ABC test. The following three conditions must be met to qualify as an independent contractor:
A. Lack of direction and control:
• Control is exercised when workers are totally dependent upon the employer economically. The employer exercises the necessary control of the employee through monetary means. For example, a worker who performs services primarily for one company would be economically dependent upon that company.
• If an employer and not the worker bears responsibility for the finished product or legal responsibility for the performance of the service; therefore, the worker who made the product or performed the service is an employee for unemployment insurance tax purposes.
• In contract labor, the entity contracting to have the work done is concerned only with the finished product. In an employer-employee relationship, concern is with the way the work is done.
• An independent contractor has freedom of action. This freedom of action allows independent contractors to choose their own hours and days of work and materials, acquire their own customers, hire their own assistants, and set ...

Read more about Independent Contractors