PROPOSAL to SB270 Independent Contractor Committee
Independent Contractor Certification
The department proposes the implementation of an independent contractor certification with the
Change definition of an independent contractor to one who has a certificate.
Clarify that “main street businesses” do not need an IC certificate.
If have IC certificate it is conclusive that individual is an independent contractor.
The department will issue an IC certificate only to those who swear, via an affidavit,
that they are free from control and direction, and attach documentation supporting
they are established in an independent business. The department will simplify the
supporting documentation requirements for renewal applicants.
Certified independent contractors are exempt from workers’ compensation.
The affidavit is to establish:
a. the individual recognizes they are performing their service free from control and
b. the individual acknowledges they can be audited by the department for
verification they are established in an independent business in the occupation
which they are working as a certified IC;
c. the individual acknowledges they are not eligible and have specifically waived
their entitlement to workers’ compensation benefits;
d. the applicant acknowledges they may not be entitled to the protections afforded in
the Wage Payment Act, the Human Rights Act, or the provisions of the
Unemployment Insurance Code;
e. the individual acknowledges they can be fined for working with employees and
not owning a workers’ compensation policy.
All applicants will receive an IC certificate, provided they meet the requirements.
Those who cannot provide enough documentation to earn 150 points or more will be
required to purchase a workers’ compensation policy. See last page for point system.
Those who accumulate less than 150 points will receive a certificate for term of their
policy or 6 months. Extensions may be granted.