Connecticut’s Worker Classification Test is on Trial

Connecticut employers who use independent contractors in their business operations should be awaiting a decision in the Southwest Appraisal Group case with interest.

In this case, Part “C” of Connecticut’s Worker Classification test is being examined. According to Part “C”, in order for a worker to be classified as an independent contractor rather than an employee, they must “customarily be engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed.”

Southwest contends that imposing this allegedly new requirement will be damaging to the Connecticut economy whereas the state argues that its interpretation of the statutory test ensures that workers classified as contractors will be economically independent.

The case is currently awaiting oral arguments at the State Supreme Court.

Click here to read more about the case:

UPDATE: The Connecticut Supreme Court has reversed the trial court’s decision and ruled in favor of Southwest Appraisal Group. They concluded that “evidence of the performance of services for third parties is not required to prove part C of the ABC test but, rather, is a single factor that may be considered under the totality of the circumstances analysis governing that inquiry.” They further explained, “just as the mere freedom to provide services for third parties is not by itself dispositive under part C, whether the individual actually provided services for someone other than the employer is not dispositive proof of an employer-employee relationship.”

Employers now have 10 additional factors from the Connecticut Supreme Court to consider when evaluating if an individual will meet part C of that test.

Read more details on these factors and the Court’s decision here: