BLOG: HOW DO I PROVE I AM AN EMPLOYEE?
On January 1, 2013, the Michigan Legislature revised the Workers Disability Compensation Act (WDCA) to include guidance on who is an independent contractor and who is an employee under the act. This is important because employees receive benefits under the act and independent contractors do not.
An individual for whom an employer is required to withhold federal income tax is almost always presumed to be an employee.
A company can make a request to the Michigan administrative hearing system to determine whether 1 or more individuals are employees under the WDCA
The legislature also incorporated a 20 factor test published by the Internal Revenue Service (IRS) in Ruling 87-41, 1 C.B. 296. The ruling goes into greater detail explaining each of the following factors:
4. Services Rendered Personally;
5. Hiring, Supervising, and Paying Assistants;
6. Continuing relationship;
7. Set hours of work;
8 Full time required;
9. Doing work on the company’s premises
10 Order of sequence of work directed by company;
11. Oral or written reports;
12 Payment by the hour, week or month;
13. Payment of business or traveling expenses;
14. Furnishing of tools or materials;
15. Significant investment;
16. Realization of profit or loss;
17. Working for more than one company at a time;
18. Making the service available for the general public;
19. Right to discharge; and
20. The right to terminate employment.
Even though some factors may favor the company, it does not mean that the individual is not an employee.
EACH FACTOR HAS BEEN INTERPRETED MANY TIMES BY MANY COURTS WITH DIFFERENT RESULTS DEPENDING ON THE UNIQUE CIRCUMSTANCES OF THE INDIVIDUAL CASE. THESE FACTORS REQUIRE CAREFUL LEGAL ANALYSIS THAT ONLY A TRAINED LAWYER CAN PROVIDE!!! THE LAW OFFICES OF JOUMANA KAYROUZ, PLLC HAVE THE STAFF AND RESOURCES TO MAKE SURE ALL WORKERS’ RIGHTS ARE PROTECTED UNDER THE WORKERS DISABILITY COMPENSATION ACT.