Skill

legalcode-independent-contractor-classification

Analyse whether a working relationship should be classified as independent contractor or employee under multiple overlapping legal tests: ABC test (California AB5/Dynamex, Massachusetts, New Jersey, Illinois, 33+ states), economic reality test (FLSA, DOL guidance), common law / right-to-control test (IRS three-category framework, Revenue Ruling 87-41), and hybrid tests. Evaluates behavioural control, financial control, and relationship-type factors across federal and state regimes simultaneously. Produces a multi-test risk score with per-regime verdicts, identifies misclassification exposure (back taxes, benefits liability, penalties, class action risk), recommends structural modifications to strengthen contractor status, and generates defensibility documentation. Use when onboarding independent contractors, auditing an existing contractor workforce, responding to a DOL/state agency investigation, evaluating litigation risk, or advising on platform-worker arrangements. Covers US federal (FLSA, IRS, NLRB), all US states with notable ABC-test treatment, UK (IR35 / Off-Payroll Working), EU Platform Work Directive (2024/2831), and Australian post-2024 Fair Work Act framework. Includes Section 530 of the Revenue Act safe harbour analysis.