|
THE SENATE |
S.B. NO. |
1219 |
|
TWENTY-EIGHTH LEGISLATURE, 2015 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO EMPLOYMENT SECURITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 383-6, Hawaii Revised Statutes, is amended to read as follows:
"§383-6 [Master and servant
relationship, not required when.] Independent contractor; circumstantial
presumption; optional certification. (a) [Services
performed by an] An individual [for wages or] performing
services under any contract of hire shall be deemed to be [employment
subject to this chapter irrespective of whether the common law relationship of
master and servant exists unless and until it is shown to the satisfaction of
the department of labor and industrial relations that:
(1) The individual has been and will
continue to be free from control or direction over the performance of such
service, both under the individual's contract of hire and in fact; and
(2) The service is either outside the usual
course of the business for which the service is performed or that the service
is performed outside of all the places of business of the enterprise for which
the service is performed; and
(3) The individual is customarily engaged
in an independently established trade, occupation, profession, or business of
the same nature as that involved in the contract of service.]
an independent contractor if the individual meets the requirements for independent contractor status pursuant to rules adopted by the department under chapter 91.
(b) Notwithstanding subsection (a), an individual shall be presumed by the department to be an independent contractor if the individual has:
(1) A valid employee identification number issued by the United States Internal Revenue Service;
(2) A current general excise tax license issued by the department of taxation;
(3) Entered into a formalized agreement of limited duration with a customer to perform specific services; and
(4) Otherwise fulfills the requirements for independent contractor status according to the Internal Revenue Service based on behavioral control, financial control, and relationship between the parties.
(c) An individual who meets the requirements for independent contractor status under this section may submit an application for certification by the department as an independent contractor. The individual may provide a copy of the certification to any customer to whom the individual provides services. A customer who receives a copy of certification from a certified independent contractor shall not be considered an employer of the individual providing the copy of certification for any services rendered in accordance with a formalized agreement of limited duration for specific services.
(d) If an independent contractor files a claim for unemployment insurance benefits against a customer despite the presumption of subsection (b) or the certification allowed under subsection (c), the burden shall be on the independent contractor to prove that an employer-employee relationship exists."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on January 7, 2059.
Report Title:
Employment Security; Independent Contractor
Description:
Allows the department of labor and industrial relations to set criteria for independent contractor status. Establishes criteria for when the department shall presume an individual is an independent contractor. Requires the department to certify independent contractors. Allows independent contractors to provide a written copy of certification to each customer. Places the burden of proving an employee-employer relationship on the certified independent contractor if the contractor files an unemployment insurance benefits claim against a customer. Effective January 7, 2059. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.