• Redefining "Employee" in Ohio
  • June 23, 2011 | Authors: Sarah E. Pawlicki; James B. Yates
  • Law Firm: Eastman & Smith Ltd. - Toledo Office
  • In recent months, there has been increased scrutiny by state and federal regulatory agencies of independent contractor relationships. An agency finding that an employer has misclassified an individual as an independent contractor (versus an employee) is an expensive proposition for an employer - and a revenue boost to various agencies who receive thousands of dollars in past and future unemployment premiums, payroll taxes and workers' compensation premiums. Currently, a 20 factor test developed by the IRS is most frequently used to determine whether an independent contractor is truly "independent" and not an employee. Ohio legislators currently are deciding whether Ohio should have its own, more expansive, definition of "employee."