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The Federal Motor Carrier Safety Administration (FMCSA) does not use the same definition for an “employee” as the Internal Revenue Service (IRS) or the Department of Labor (DOL) does. The FMCSA’s definition of an “employee” is found in �390.5:
As far as contracted or leased drivers go, the FMCSA considers them employees and expects the carrier to ensure that they are compliant.
To satisfy IRS law, it is important to determine whether a worker is an independent contractor or an employee. This determination is complex but is essentially made by examining the right to control how, when, and where the person performs services. It is not based on how the person is paid, how often the person is paid, or whether the person works part-time or full-time. The general rule is that an individual is an independent contractor if the person for whom the services are performed (lessee) has the right to control or direct only the result of the work, and not what will be done and how it will be done or the method of accomplishing the result.
The courts have considered many facts in deciding whether a worker is an independent contractor or an employee. These facts fall into three main categories:
The IRS provides information to assist in determining employee vs. independent contractor status at the following links:
Topic 762 - Independent Contractor vs. Employee