Contingent Workforce/Independent Contractor Rules - Kentucky

Kentucky state regulations list criteria similar to the FLSA economic reality test to determine whether an employer/employee relationship exists. The following additional factors are to be applied if an employer/employee relationship cannot be determined by use of the first six criteria alone:

• Whether the work done by the alleged independent contractor is listed on the payroll with the appropriate tax deductions;
• Whether the payments to the alleged independent contractor are charged to a labor and salary account or selling expense account;
• Whether the employees of the alleged independent contractor must be approved by the possible employer;
• Whether the possible employer keeps the books and prepares payroll for the possible employee;
• Whether the alleged independent contractor is assigned to a particular territory without freedom of movement outside thereof;
• Whether the alleged independent contractor has an independent economic or other interest in his or her work, other than increasing his or her own pay;
• How the respective tax returns of the parties list the remuneration paid; and
• Whether the possible employer has control over the manner in which the work is to be performed.