This bill aims to amend the West Virginia Employment Law Worker Classification Act by aligning the classification of independent contractors and employees with the standards set by the Internal Revenue Service (IRS). The proposed changes include the deletion of specific criteria that currently define independent contractors, such as the requirement for a written contract and various conditions regarding control over work and expenses. Instead, the bill introduces a new provision stating that the classification of all workers will be determined by the IRS Revenue Ruling 87-41 or any subsequent applicable IRS rules, with any ambiguity resolved in favor of independent contractor status.

The bill emphasizes the importance of consistency with federal classifications, thereby potentially impacting how workers are classified in terms of benefits and protections under state law. By removing the detailed criteria for independent contractor status and relying on IRS guidelines, the legislation seeks to simplify the classification process while ensuring that workers who meet the IRS criteria are recognized as independent contractors. This change could have significant implications for both workers and employers in West Virginia.

Statutes affected:
Introduced Version: 21-5I-4