We have repeatedly blogged on the Pushmi-Pullyu world of independent contractor relationships, a world in which employers can do no right. (DOL Says Employers Are Morons) Well, Arizona recently enacted a law providing at least some level of clarity to independent contractor status. HB 2114 creates a purely voluntary mechanism through which a service provider can self-identify as an independent contractor to a hiring entity. Once the service provider fulfills the self-identification requirements, there is a rebuttable presumption that an independent contractor relationship exists. The rebuttable presumption is a huge help to hiring entities in Arizona, who would otherwise bear the burden of proving “by clear and convincing evidence” that an independent contractor relationship exists. The voluntary self-identification process requires the service provider to sign a Declaration that contains certain requirements and typical indices of independent contractor status, all of which is specifically laid out in HB 2114.
There are 5 points of note with respect to HB 2114.