Bill Would Adopt Federal Standards for Contractor Classification

A bill introduced in West Virginia on Monday would adopt a nearly 40-year-old federal standard for determining whether a worker is an employee or a contractor. SB 1073 would repeal state-specific statutes that require a person to sign a written contract, retain control over the final result of the work and satisfy other criteria to be classified as an independent contractor. The bill would declare that the classification of all workers shall be determined by the test set forth in Internal Revenue Service Revenue Ruling 87-41, or subsequent regulations. The IRS ruling from 1987 identifi...