Report Title:

Employment

 

Description:

Defines "independent contractor" in the same manner as the Internal Revenue Service for employment security, workers' compensation, and temporary disability insurance purposes.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1422

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO EMPLOYMENT.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 383, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§383-   Independent contractor. In determining whether a person is an independent contractor or an employee for the purposes of this chapter, the department shall use the determination of the United States Internal Revenue Service as to whether a person is an independent contractor, following the "power of control" test."

SECTION 2. Chapter 386, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§386-   Independent contractor. In determining whether a person is an independent contractor or an employee for the purposes of this chapter, the department shall use the determination of the United States Internal Revenue Service as to whether a person is an independent contractor, following the "power of control" test."

SECTION 3. Chapter 392, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§392-   Independent contractor. In determining whether a person is an independent contractor or an employee for the purposes of this chapter, the department shall use the determination of the United States Internal Revenue Service as to whether a person is an independent contractor, following the "power of control" test."

SECTION 4. Section 383-6, Hawaii Revised Statutes, is repealed.

["§383-6 Master and servant relationship, not required when. Services performed by an individual for wages or under any contract of hire shall be deemed to be employment subject to this chapter irrespective of whether the common law relationship of master and servant exists unless and until it is shown to the satisfaction of the department of labor and industrial relations that:

(1) The individual has been and will continue to be free from control or direction over the performance of such service, both under the individual's contract of hire and in fact; and

(2) The service is either outside the usual course of the business for which the service is performed or that the service is performed outside of all the places of business of the enterprise for which the service is performed; and

(3) The individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the contract of service."]

SECTION 5. This Act shall not affect disbursements made by the department of labor and industrial relations before its effective date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:

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