Connecticut Independent Contractors laws & HR compliance analysis

Connecticut 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. The question is most often resolved by looking to state law, particularly in areas such as unemployment tax liability and state wage and hour requirements.
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The determination of a worker's status is often complex. Connecticut agencies use different rules and tests to determine employment status, as different agencies are responsible for separate aspects of law. For example, the Connecticut Department of Labor's (DOL) Unemployment Compensation Division uses the ABC test for determining a covered claim. The Connecticut Department of Revenue Services utilizes the "common law rules."
The ABC Test used by the Connecticut DOL’s Unemployment Compensation Division applies three factors for determining a worker's employment status. To be considered an independent contractor, an individual must meet all three of the following factors:
A. The individual must be free from direction and control (work independently) in connection with the performance of the service, both under his or her contract of hire and in fact.
B. The individual's service must be performed either outside the usual course of business of the employer or outside all the employer's places of business.
C. The individual must be customarily engaged in an independently established trade, occupation, profession, or business of the same nature as the service performed.
It is important to note that factor A, which incorporates many of the common-law factors, will not be satisfied if the person for whom the service is ...

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