On March 6, 2015 the Senate Commerce, Labor and Energy Committee introduced Bill 224, titled Provision Relating to Employment. Senate Bill 224 proposes a new definition to the term “independent contractor” for wage & hour purposes.
The Bill proposes the following definition of “independent contractor” for wage & hour purposes:
"Independent contractor" means any person who renders service for a specified recompense or no recompense for a specified result, under the control of the person's principal as to the result of the person's work only and not as to the means by which such result is accomplished. Factors that must be considered to determine whether a person is an independent contractor are whether the person:
Is free to establish his or her days and hours of performance and is substantially free from the control and direction of the person's principal.
Is customarily engaged in a trade or business of the work being performed which is established independently of the principal.
Is free to offer the same services to competitors of the principal or to customers of the competitors of the principal.
Receives compensation from the principal or from some other person or entity and is a tenant or customer of the principal.
Holds a current state business license issued by the Secretary of State pursuant to chapter 76 of NRS.
Intended to be an independent contractor rather than an employee of the principal at the time the person's services were engaged.
Does not have contributions, premiums or taxes imposed pursuant to chapters 363A, 363B, 612 and 616A to 617, inclusive, of NRS withheld or paid on his or her behalf by the principal.
- Leases space or equipment from the principal.
In addition, Senate Bill 224 appears to create a barrier for wage & hour class action lawsuit by adding the following language:
“A person may not recover unpaid wages in a proceeding pursuant to Section 16 of Article 15 of the Nevada Constitution or this section and NRS 608.250 to 608.290, inclusive, unless he or she gives his or her consent in writing to become a plaintiff and his or her consent is filed with the court or agency in which the proceeding is brought.”
Senate Bill 224 is a step in the right direction for companies that use the services of Independent Contractors in the State of Nevada. Contact your elected officials and show your support for this Bill today!