Section R20-5-1205. Determination of Employment Relationship

A.      Determination of an employment relationship under the Act, which includes whether an individual is an independent con- tractor, shall be based upon the economic realities of the rela- tionship. Consideration of whether an individual is economically dependent on the employer for which the indi- vidual performs work shall be determined by factors showing dependence, which non-exclusive factors shall include:

1.        The degree of control the alleged employer exercises over the individual,

2.        The individual’s opportunity for profit or loss and the individual’s investment in the business,

3.        The degree of skill required to perform the work,

4.        The permanence of the working relationship, and

5.        The extent to which the work performed is an integral part of the alleged employer’s business.

B.       An individual that works for another person without any express or implied compensation agreement is not an employee under the Act. This may include an individual that volunteers to work for civic, charitable, or humanitarian rea- sons that are offered freely and without direct or implied pres- sure or coercion from an employer, provided that the volunteer is not otherwise employed by the employer to perform the same type of services as those which the individual proposes to volunteer.

C.      An individual that works for another individual as a babysitter on a casual basis and whose vocation is not babysitting, is not an employee under the Act even if the individual performs other household work not related to caring for the children, provided the household work does not exceed 20% of the total hours worked on the particular babysitting assignment.

Historical Note

New Section made by emergency rulemaking at 13

A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315,

effective January 13, 2008 (Supp. 07-4).