Iowa Code r. 871-23.19 - Employer-employee and independent contractor relationship
(1) The relationship of employer and employee
exists when the person for whom services are performed has the right to control
and direct the individual who performs the services, not only as to the result
to be accomplished by the work but also as to the details and means by which
that result is accomplished. An employee is subject to the will and control of
the employer not only as to what shall be done but how it shall be done. It is
not necessary that the employer actually direct or control the manner in which
the services are performed; it is sufficient if the employer has the right to
do so. The right to discharge or terminate a relationship is also an important
factor indicating that the person possessing that right is an employer. Where
such discharge or termination will constitute a breach of contract and the
discharging person may be liable for damages, the circumstances indicate a
relationship of independent contractor. Other factors characteristic of an
employer, but not necessarily present in every case, are the furnishing of
tools, equipment, material and a place to work to the individual who performs
the services. In general, if an individual is subject to the control or
direction of another merely as to the result to be accomplished by the work and
not as to the means and methods for accomplishing the result, that individual
is an independent contractor. An individual performing services as an
independent contractor is not as to such services an employee under the usual
common law rules. Individuals such as physicians, lawyers, dentists,
veterinarians, construction contractors, public stenographers, and auctioneers,
engaged in the pursuit of an independent trade, occupation, business or
profession, in which they offer services to the public, are independent
contractors and not employees. Professional employees who perform services for
another individual or legal entity are covered employees.
(2) The nature of the contract undertaken by
one for the performance of a certain type, kind, or piece of work at a fixed
price is a factor to be considered in determining the status of an independent
contractor. In general, employees perform the work continuously and primarily
their labor is purchased, whereas the independent contractor undertakes the
performance of a specific job. Independent contractors follow a distinct trade,
occupation, business, or profession in which they offer their services to the
public to be performed without the control of those seeking the benefit of
their training or experience.
(3)
Independent contractors can make a profit or loss. They are more likely to have
unreimbursed expenses than employees and to have fixed, ongoing costs
regardless of whether work is currently being performed. Independent
contractors often have significant investment in real or personal property that
they use in performing services for someone else.
(4) Employees are usually paid a fixed wage
computed on a weekly or hourly basis while an independent contractor is usually
paid one sum for the entire work, whether it be paid in the form of a lump sum
or installments. The employer-employee relationship may exist regardless of the
form, measurement, designation or manner of remuneration.
(5) The right to employ assistants with the
exclusive right to supervise their activity and completely delegate the work is
an indication of an independent contractor relationship.
(6) Services performed by an individual for
remuneration are presumed to be employment unless and until it is shown to the
satisfaction of the department that the individual is in fact an independent
contractor. Whether the relationship of employer and employee exists under the
usual common law rules will be determined upon an examination of the particular
facts of each case.
(7) If the
relationship of employer and employee exists, the designation or description of
the relationship by the parties as anything other than that of employer and
employee is immaterial. Thus, if such relationship exists, it is of no
consequence that the employee is designated as a partner, coadventurer, agent,
independent contractor, or the like.
(8) All classes or grades of employees are
included within the relationship of employer and employee. For example,
superintendents, managers and other supervisory personnel are
employees.
Notes
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