Legal

Testing: Contractors in the Virtual Marketplace

By Daniel Saeedi, Rachel L. Schaller

Jul. 19, 2019

Recognizing the proliferation of virtual marketplace companies (VMC) like Uber and TaskRabbit, the Wage and Hour Division of the Department of Labor issued an opinion letter applying the six-factor test to evaluate whether a service provider is an employee or independent contractor.

Control: The service provider has the flexibility to choose if, when, where, how and for whom they will work. The VMC lacks oversight concerning the quality of the service provided.

Permanency: The service provider is engaged on a project-by-project basis and is free to accept work from a competitor of the VMC. There are limited grounds upon which a service provider can be terminated.

Investment: The service provider invests their own money in the facilities, equipment or helpers needed to provide services on the VMC’s platform.

Skill and initiative: The service provider, through their own skills, initiative or judgment, is able to independently manage the work, and is not dependent on the VMC for training.

Opportunity for profit/loss: The service provider’s own skills, initiative and judgment dictate their opportunity for greater earnings or exposure to loss of their investment.

Degree of integration: The service provider does not develop the VMC’s platform and they are not integral to the business of referrals.

Also in Legal Briefings: 

Supervisor’s Unchecked Sexual Harassment

FMLA Leave: Designate Early and Often

What’s New at Workforce.com?

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software
workforce news

Related Articles

workforce blog

Compliance

Minimum Wage by State in 2023 – All You Need to Know

Summary Twenty-three states and D.C. raised their minimum wage rates in 2023, effective January 1.  Thr...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog

Legal

New Labor Laws Taking Effect in 2023

The new year is fast approaching, and with its arrival comes a host of new labor laws that will impact ...

labor laws, minimum wage, wage and hour law

workforce blog

Legal

Wage and Hour Laws in 2022: What Employers Need to Know

Whether a mom-and-pop shop with a handful of employees or a large corporation staffing thousands, compl...

compliance, wage and hour law